FEASIBILITY REPORT

SALON AND HAIR COLOURING CENTER

Estimated project cost in (pkr)

items description quantity rate count

chairs 3 5000 15000

mirrors 4 1000 4000
salon stock 1 50000 50000
air condition 1 30000 30000
counter 2 10000 20000
2.5kv generator 1 25000 25000
television 1 20000 20000
miscellaneous fixture 1 50000 50000
Estimated cost of operating assets 214000

INITIAL SETUP COST ESTIMATE (Q) count

security deposit 5(3000) 15000
civil work and renovation 70 5000
misc startup expenses 50000 50000
Total Setup Cost 70000

ESTIMATED MONTHLY EXPENSE (Q) count

stock inventory 1 50000
utility expense 1 20000
rent 1 3000
misc. ecpense 1 10000
Estimated Monthly Cost 83000

HUMAN RESOURCE COST ESTIMATE

Hair designer and salon 2 40000
Total Human Resource Cost 40000

TOTAL COST 407000

Aplicant Equity 10% 40700

Kamyab jawan loan 366300
interest rate 3%
loan tenure 8 yrs

EXPENSES AND REVENUE ASSUMPTIONS

count rate direct cost
customer sale 30 300 50%
revenue cycle per yea 30
labour cost index 5%
price inflation 10%
cost inflation 5%

PROJECTED PROFIT AND LOSS

year 1st 2nd 3rd 4th
revenue 2700000 2970000 3267000 3593700
direct cost 1350000 1350000 1350000 1350000
contribution margin 1350000 1620000 1917000 2243700
operating expense 996000 1095600 1205160 1325676
operating profit 354000 524500 711840 918024
installments 57288 57288 57288 57288
net profit 296712 467212 654552 860736
revenue per month 225000 247500 272250 299475
operatin profit/month 29500 43708 59320 76502
installment coverage 6 9 12.4 16

year 5th 6th 7th 8th

revenue 3953070 4348377 4783214 5261535
direct cost 1350000 1350000 1350000 1350000
contribution margin 2603070 2998377 3433214 3911535
operating expense 1458243 1604067 1764473 1940920
operating profit 1144827 1394310 1668741 1970615
installments 57288 57288 7288 57288
net profit 1087539 1337022 1611453 1913327
revenue per month 329422 362364 398601 438461
operatin profit/month 95402 116192 139061 164217
installment coverage 21.3 26 31 36.7