[INSERT IMAGE/LOGO]

COMPANY NAME

ADDRESS

CITY, STATE ZIP CODE

Tel.

Fax:

Email:

BUSINESS PLAN
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of COMPANY NAME.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means and
that any disclosure or use of same by reader may cause serious harm or damage to COMPANY NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a business plan. It does not imply an offering of securities.

 Table of Contents

1.0 Executive Summary...............................................................................1

1.1 Objectives..........................................................................................1
1.2 Mission..............................................................................................1
1.3 Keys to Success..................................................................................2
2.0 Company Summary................................................................................2
2.1 Company Ownership............................................................................2
2.2 Start-up Summary..............................................................................3
Table: Start-up......................................................................................3
3.0 Products and Services.............................................................................4
4.0 Market Analysis Summary.......................................................................4
4.1 Market Segmentation...........................................................................5
Table: Market Analysis............................................................................5
4.2 Target Market Segment Strategy...........................................................6
4.3 Service Business Analysis.....................................................................6
4.3.1 Competition and Buying Patterns.....................................................6
5.0 Strategy and Implementation Summary....................................................6
5.1 Competitive Edge................................................................................6
5.2 Marketing Strategy..............................................................................6
5.3 Sales Strategy....................................................................................7
5.3.1 Sales Forecast...............................................................................7
Table: Sales Forecast...........................................................................7
5.4 Milestones..........................................................................................9
Table: Milestones...................................................................................9
6.0 Management Summary.........................................................................10
6.1 Personnel Plan..................................................................................10
Table: Personnel..................................................................................10
7.0 Financial Plan......................................................................................11
7.0 Financial Plan......................................................................................11
7.1 Start-up Funding...............................................................................11
Table: Start-up Funding........................................................................11
7.2 Important Assumptions......................................................................12
7.3 Break-even Analysis..........................................................................13
Table: Break-even Analysis....................................................................13
7.4 Projected Profit and Loss....................................................................14
Table: Profit and Loss...........................................................................14
7.5 Projected Cash Flow...........................................................................17
Table: Cash Flow..................................................................................17
7.6 Projected Balance Sheet.....................................................................19
Table: Balance Sheet............................................................................19
7.7 Business Ratios.................................................................................20
7.7 Business Ratios.................................................................................20
Table: Ratios.......................................................................................20

Page 1
 COMPANY NAME

1.0 Executive Summary

COMPANY NAME is a full-service beauty salon dedicated to consistently providing high customer
satisfaction by rendering excellent service, quality products, and furnishing an enjoyable
atmosphere at an acceptable price/value relationship. The company will also maintain a friendly,
fair, and creative work environment, which respects diversity, ideas, and hard work.

Mission: To supply services and products that enhances our clients' physical appearance and
mental relaxation.

To achieve the company's objectives, COMPANY NAME is seeking grant funding in the amount of

$150,000. This grant will be attained and used to pay for building expenses, equipment, supplies
and inventory of the salon located in [CITY], [STATE].

Highlights

$160,000

$140,000

$120,000

Sales
$100,000
Gross Margin
$80,000
Net Profit
$60,000

$40,000

$20,000

$0
2011 2012 2013

1.1 Objectives

COMPANY NAME’s objectives for the first three years of operation include:

 The creation of a unique, upscale, innovative environment that will differentiate COMPANY
NAME from other local beauty salons.
 Educating the community on what the company has to offer.
 The formation of an environment that will bring people together in a common forum.
 Excellent service and beauty retail items at a reasonable price.

1.2 Mission

COMPANY NAME aims to offer excellent and superior service at all times. Close personal attention
to customer is essential to providing a quality experience for customers; therefore, adequate

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personnel will be hired to ensure each customer has the proper attention in the COMPANY NAME
salon.

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1.3 Keys to Success

The keys to success in our business are:

 Location: providing an easily accessible location for customers.

 Environment: providing an environment conducive to giving relaxing and professional service.
 Convenience: offering clients a wide range of services in one setting, and extended business
hours.
 Reputation: reputation of the owner and other "beauticians" as providing superior personal
service.

2.0 Company Summary

COMPANY NAME will, upon commencement of operations, sell a wide range of beauty services
and products. The company will provide quality hair services, along with top lines of beauty
products. What will set COMPANY NAME apart from the competition is the
company's commitment to providing all of these services in one convenient location.

2.1 Company Ownership

COMPANY NAME is a sole proprietorship registered DBA by owner OWNER’S NAME in [CITY],
[STATE].  Some thought has been given to incorporating COMPANY NAME, but a decision has not
yet been reached.

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2.2 Start-up Summary

After spending several months searching for a salon to purchase, the owners decided to start a
salon from the ground up. The start-up capital will be used for the design, leasehold
improvements, and equipment of the salon.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Rent deposit $1,817
Inventory $2,000
Equipment $75,000
Supplies $20,000
Advertising $10,000
Insurance $5,000
Building Expense $25,000
Total Start-up Expenses $138,817

Start-up Assets
Cash Required $500
Other Current Assets $0
Long-term Assets $0
Total Assets $500

Total Requirements $139,317

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Start-up

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
Expenses Assets Investment Loans

3.0 Products and Services

COMPANY NAME is considered an upscale full-service beauty salon. The company will offer a wide
range of services that include:

 Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling, reconstructing, weaving,
and waving.
 Skin Care: European facials and body waxing.

4.0 Market Analysis Summary

As of the census of 2008, there were 1,888 people, 815 households, and 485 families residing in
the town. The population density was 1,186.1 people per square mile (458.5/km²). There were
900 housing units at an average density of 565.4/sq mi (218.5/km²). The racial makeup of the
town was 98.78% White, 0.11% African American, 0.48% Native American, 0.16% Asian, 0.26%
from other races, and 0.21% from two or more races. Hispanic or Latino of any race was 0.42%
of the population.

There were 815 households out of which 27.9% had children under the age of 18 living with
them, 38.7% were married couples living together, 16.9% had a female householder with no
husband present, and 40.4% were non-families. 37.3% of all households were made up of
individuals and 19.5% had someone living alone who was 65 years of age or older. The average
household size was 2.17 and the average family size was 2.84.

In the town the population was spread out with 21.9% under the age of 18, 5.9% from 18 to 24,
24.8% from 25 to 44, 23.8% from 45 to 64, and 23.5% who were 65 years of age or older. The
median age was 43 years. For every 100 females there were 78.4 males. For every 100 females
age 18 and over, there were 71.3 males.

The median income for a household in the town was $14,844, and the median income for a
family was $21,895. Males had a median income of $25,469 versus $17,115 for females. The per

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capita income for the town was $10,615. About 31.8% of families and 32.0% of the population
were below the poverty line, including 31.7% of those under age 18 and 23.7% of those age 65
or over.

[CITY] is a town just outside of [CITY], [STATE].  Founded in 1786, [CITY] is the third-largest
city in the U.S. state of [STATE], behind [CITY] and [CITY], and is the county seat of Knox
County.  It is also the largest city in East [STATE]. As of the 2000 United States Census, [CITY]
had a total population of 173,890; the July 2007 estimated population was 183,546.   [CITY] is the
principal city of the [CITY] Metropolitan Statistical Area with a metro population of 655,400,
which is in turn the central component of the [CITY]-[CITY] Combined Statistical Area with
1,029,155 residents.

There are very few beauty salons in the city of [CITY], [STATE].  COMPANY NAME is confident
that the company can offer superior services and products to the city and to the surrounding
areas.

4.1 Market Segmentation

COMPANY NAME has identified two market segments as follows:

1.  Local clientele

2.  Out of town/Traveling clientele

COMPANY NAME feels that the most important target market is the local clientele from [CITY],
[STATE]; however, the company is seeking to advertise to the surrounding areas and make
widely know that COMPANY NAME is the best in the business.  In addition, the company is
seeking to be known as the best salon in town by providing excellent service and products to
each and every customer, which promotes word-of-mouth advertising.

Table: Market Analysis

Market Analysis
2011 2012 2013 2014 2015
Potential Customers Growth CAGR
Local Customers 5% 1,888 1,982 2,081 2,185 2,294 4.99%
Out of Town 5% 35,665 37,448 39,320 41,286 43,350 5.00%
Customers
Total 5.00% 37,553 39,430 41,401 43,471 45,644 5.00%

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Market Analysis (Pie)

Local Customers

Out of Town Customers

4.2 Target Market Segment Strategy

Referral marketing is the key type of marketing strategy utilized. Maintaining and further
enhancing its reputation in the community is crucial to gaining additional market share of the
company's target markets.

4.3 Service Business Analysis

The beauty salon business is lucrative, as mentioned before. As a result, there are many centers
that provide beauty salon services for customers in the same area as COMPANY NAME will
compete with the small beauty salons, and this is where the main competition lies. The company
is confident that this will be a successful venture because of the quality of its managers and the
capability of its beauty technicians, which is mentioned in more detail in the Personnel section.

4.3.1 Competition and Buying Patterns

The key element in purchase decisions made at the COMPANY NAME client level is trust in the
professional reputation and reliability of the beauty salon.

5.0 Strategy and Implementation Summary

Skill at what COMPANY NAME does, good customer service, and creating a pleasant environment
for customers will be important to implementing the company's business plan.

5.1 Competitive Edge

COMPANY NAME wants to set itself apart from other beauty salons that may offer only one or two
types of services. Having come from such a salon, [NAME] and [NAME] have realized, from
talking with her clients, that they desire all of the services that the company is proposing, but
they remain frustrated because they must get their hair done at one place, and skincare done at

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another. Although the focus of COMPANY NAME is hair services, the company does wish to offer
clients the convenience of these other services in one location.

There are a few salons like this, but they are mainly in the outlaying parts of [CITY] and
surrounding areas.  COMPANY NAME wishes to offer a middle ground for those clients who can't
quite afford those high-end luxury salons.

The business atmosphere will be a relaxing one where clients can kick back and be pampered.
Soft drinks will be offered to clients as they enter for service. Televisions will be located in the
waiting and hair-drying area.

5.2 Marketing Strategy

COMPANY NAME's marketing strategy is a simple one: satisfied clients are the company's best

marketing tool. When a client leaves the business with a new look, he or she is broadcasting our
name and quality to the public. Most of COMPANY NAME clients will be referrals from existing
clients.

COMPANY NAME‘s research has shown that word of mouth is the best advertising for this type of
business. The salon will, however, run specials throughout the week. COMPANY NAME will also
ask clients for referrals, and reward them with discounted or free services depending on the
number of clients they bring. The salon will also offer discounts to the new clients who have been
referred. There are plans for a lottery that will offer a free trip to, say, Cancun. A client would
simply refer new clients to us, and COMPANY NAME will place a card in a box for each client he or
she brings. The more they bring the more chances they have of winning the trip.

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5.3 Sales Strategy

The sales forecast monthly summary is included in the appendix. The annual sales projections are
included here in Table 5.2.

5.3.1 Sales Forecast

The following table and charts show COMPANY NAME projected sales. The company expects

income to increase steadily over the next three years, as the reputation of the salon, its stylists
and services become apparent to the general public. Second year revenues also anticipate the
addition of one new stylist.

Table: Sales Forecast

Sales Forecast

2011 2012 2013

Sales

Stylist #1 $49,600 $57,040 $65,596

Barber #1 $16,800 $19,320 $22,218

Stylist #2 $22,800 $25,622 $29,465

Stylist #3 $0 $22,000 $24,000

Product sales $9,600 $10,000 $11,000

Total Sales $98,800 $133,982 $152,279

Direct Cost of Sales 2011 2012 2013

Product Costs $4,320 $4,300 $4,400

Other $2,400 $2,400 $2,400

Subtotal Direct Cost of Sales $6,720 $6,700 $6,800

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Sales Monthly

$9,000

$8,000

$7,000 Stylist #1

$6,000 Barber #1
$5,000 Stylist #2
$4,000 Stylist #3
$3,000 Product sales
$2,000

$1,000

$0
Jan Mar May Jul Sep Nov
Feb Apr Jun Aug Oct Dec

Sales by Year

$160,000

$140,000
Stylist #1
$120,000
Barber #1
$100,000
Stylist #2
$80,000
Stylist #3
$60,000
Product sales
$40,000

$20,000

$0
2011 2012 2013

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5.4 Milestones

The milestones table and chart show the specific detail about actual program activities that
should be taking place during the year. Each one has a starting date, ending date, and budget.
During the year COMPANY NAME will be keeping track of implementation against plan, with
reports on the timely completion of these activities as planned.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Building Expense 9/30/2010 1/30/2011 $25,000 Owners
Acquire Equipment 11/1/2010 1/30/2011 $75,000 Owners
Supplies 9/30/2010 1/30/2011 $20,000 Owners
Launch Advertising Campaign 12/15/2010 1/30/2011 $5,000 Owners
Attain Inventory of Beauty 1/1//2011 1/15/2011 $2,000 Owners
Products

Totals $127,000

Milestones

Attain Inventory of Beauty Products

Launch Advertising Campaign

Supplies

Acquire Equipment

Building Expense

Oct `10 Nov Dec Jan `11

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6.0 Management Summary

COMPANY NAME will be organized and managed in a creative and innovative fashion to generate
very high levels of customer satisfaction, and to create a working climate conducive to a high
degree of personal development and economic satisfaction for employees.

Training classes to help improve employee product knowledge and skills will be conducted on a
regular basis. As the business grows, the company will consider offering an employee benefit
package to include health and vacation benefits for everyone.

6.1 Personnel Plan

The personnel plan calls for a receptionist who will greet customers and receive payments for
services and products.  Everyone but the receptionist will be contract workers, and will be paid a
sliding commission scale based on the amount of revenue created. Future plans include the hiring
of an addition beauty stylist as the business expands.

Table: Personnel

Personnel Plan
2011 2012 2013
Owner (Stylist) $24,000 $25,000 $26,000

Receptionist $14,400 $15,120 $15,876

Shampoo Tech $12,000 $12,400 $13,000

Total People 3 4 5

Total Payroll $50,400 $52,520 $54,876

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7.0 Financial Plan

COMPANY NAME's goal is to be a profitable business beginning in the first month. The business
will not have to wait long for clients to learn about it since the stylists will already have an
existing client base.

7.1 Start-up Funding

COMPANY NAME’s start-up costs are detailed above, in the Start-up Table. 

Table: Start-up Funding

Start-up Funding
Start-up Expenses to $138,817
Fund
Start-up Assets to $500
Fund
Total Funding $139,317
Required

Assets
Non-cash Assets from $0
Start-up
Cash Requirements $500
from Start-up
Additional Cash $0
Raised
Cash Balance on $500
Starting Date
Total Assets $500

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable $0
(Outstanding Bills)
Other Current $0
Liabilities (interest-
free)
Total Liabilities $0

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Capital

Planned Investment
Owner $500
Investor $0
Additional $138,817
Investment
Requirement
Total Planned $139,317
Investment

Loss at Start-up ($138,817)

(Start-up Expenses)
Total Capital $500

Total Capital and $500

Liabilities

Total Funding $139,317

7.2 Important Assumptions

The financials that are enclosed have a number of assumptions:

Revenues will grow at an annual rate of 15%, increasing 20% in November and December due to
a historical jump in revenues at this time of year. The company anticipates this increase to stay
steady throughout the following year to account for the normal flow of new clients coming into
the salon. Estimates for sales revenue and growth are intentionally low, while anticipated
expenses are exaggerated to the high side to illustrate a worst case scenario.

Product sales are a minimal part of the company's market. COMPANY NAME is not quite sure how
much revenue will be derived from products, so the company took a low-ball approach. 

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7.3 Break-even Analysis

The break-even analysis shows that COMPANY NAME has a good balance of fixed costs and
sufficient sales strength to remain healthy. This calculation is focused on service sales, and
excludes costs related to product sales. This conservative forecast shows the salon just passing
the break-even point throughout most of the first year, but the company expects actual sales to
be higher.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $7,800

Assumptions:
Average Percent Variable Cost 7%
Estimated Monthly Fixed Cost $7,269

Break-even Analysis
$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

($4,000)

($5,000)

($6,000)

($7,000)
$0 $2,000 $4,000 $6,000 $8,000 $10,000
$1,000 $3,000 $5,000 $7,000 $9,000 $11,000

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7.4 Projected Profit and Loss

The following table shows very conservative profit and loss projections for the next three years.
The table includes the payments for all independently contracted stylists and technicians, as well
for all regularly occurring supply expenses associated with service sales.

Table: Profit and Loss

Pro Forma Profit and Loss

2011 2012 2013
Sales $98,800 $133,982 $152,279
Direct Cost of Sales $6,720 $6,700 $6,800
Other Costs of Sales $0 $0 $0
Total Cost of Sales $6,720 $6,700 $6,800

Gross Margin $92,080 $127,282 $145,479

Gross Margin % 93.20% 95.00% 95.53%

Expenses
Payroll $50,400 $52,520 $54,876
Marketing/Promotion $1,200 $1,200 $1,200
Depreciation $8,146 $8,146 $8,146
Rent $10,800 $11,124 $11,458
Utilities $2,400 $4,200 $4,200
Insurance $1,200 $1,200 $1,200
Independently contracted stylists $7,087 $7,300 $7,519
Supplies $6,000 $6,000 $6,000

Total Operating Expenses $87,233 $91,690 $94,599

Profit Before Interest and Taxes $4,847 $35,592 $50,880

EBITDA $12,993 $43,738 $59,026
Interest Expense $0 $0 $0
Taxes Incurred $1,454 $10,678 $15,264

Net Profit $3,393 $24,914 $35,616

Net Profit/Sales 3.43% 18.60% 23.39%

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Profit Monthly

$700

$600

$500

$400

$300

$200

$100

$0

($100)

($200)

($300)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Profit Yearly

$36,000

$32,000

$28,000

$24,000

$20,000

$16,000

$12,000

$8,000

$4,000

$0
2011 2012 2013

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Gross Margin Monthly

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Gross Margin Yearly

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
2011 2012 2013

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7.5 Projected Cash Flow

COMPANY NAME expects to manage cash flow over the next three years simply by the growth of
the cash flow of the business. The business will generate more than enough cash flow to cover all
of its expenses.

Table: Cash Flow

Pro Forma Cash Flow

2011 2012 2013
Cash Received

Cash from Operations

Cash Sales $98,800 $133,982 $152,279
Subtotal Cash from Operations $98,800 $133,982 $152,279

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $150,000 $0 $0
Subtotal Cash Received $248,800 $133,982 $152,279

Expenditures 2011 2012 2013

Expenditures from Operations

Cash Spending $50,400 $52,520 $54,876
Bill Payments $33,690 $47,595 $53,210
Subtotal Spent on Operations $84,090 $100,115 $108,086

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Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current $0 $0 $0
Borrowing
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal $0 $0 $0
Repayment
Purchase Other Current Assets $22,000 $0 $0
Purchase Long-term Assets $100,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $206,090 $100,115 $108,086

Net Cash Flow $42,710 $33,867 $44,193

Cash Balance $43,210 $77,078 $121,270

Cash
$44,000

$40,000

$36,000

$32,000

$28,000
Net Cash Flow
$24,000

$20,000
Cash Balance

$16,000

$12,000

$8,000

$4,000

$0
Jan Mar May Jul Sep Nov
Feb Apr Jun Aug Oct Dec

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7.6 Projected Balance Sheet

As shown in the balance sheet, COMPANY NAME expects a healthy growth in net worth.

Table: Balance Sheet

Pro Forma Balance Sheet

2011 2012 2013
Assets

Current Assets
Cash $43,210 $77,078 $121,270
Other Current Assets $22,000 $22,000 $22,000
Total Current Assets $65,210 $99,078 $143,270

Long-term Assets
Long-term Assets $100,000 $100,000 $100,000
Accumulated Depreciation $8,146 $16,292 $24,438
Total Long-term Assets $91,854 $83,708 $75,562
Total Assets $157,064 $182,786 $218,832

Liabilities and Capital 2011 2012 2013

Current Liabilities
Accounts Payable $3,171 $3,978 $4,409
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,171 $3,978 $4,409

Long-term Liabilities $0 $0 $0
Total Liabilities $3,171 $3,978 $4,409

Paid-in Capital $289,317 $289,317 $289,317

Retained Earnings ($138,817) ($135,424) ($110,510)
Earnings $3,393 $24,914 $35,616
Total Capital $153,893 $178,807 $214,423
Total Liabilities and Capital $157,064 $182,786 $218,832

Net Worth $153,893 $178,807 $214,423

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7.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) Index code 7231, Beauty Shops, are shown for
comparison.

Table: Ratios

Ratio Analysis
2011 2012 2013 Industry
Profile
Sales Growth 0.00% 35.61% 13.66% 3.38%

Percent of Total
Assets
Other Current 14.01% 12.04% 10.05% 47.76%
Assets
Total Current 41.52% 54.20% 65.47% 62.16%
Assets
Long-term 58.48% 45.80% 34.53% 37.84%
Assets
Total Assets 100.00% 100.00% 100.00% 100.00%

Current 2.02% 2.18% 2.01% 24.44%

Liabilities
Long-term 0.00% 0.00% 0.00% 22.82%
Liabilities
Total Liabilities 2.02% 2.18% 2.01% 47.26%
Net Worth 97.98% 97.82% 97.99% 52.74%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 93.20% 95.00% 95.53% 100.00%
Selling, General 89.76% 76.40% 72.15% 69.91%
& Administrative
Expenses
Advertising 8.24% 6.08% 5.35% 2.38%
Expenses
Profit Before 4.91% 26.56% 33.41% 2.30%
Interest and
Taxes

Main Ratios
Current 20.56 24.91 32.50 1.64
Quick 20.56 24.91 32.50 1.26
Total Debt to 2.02% 2.18% 2.01% 60.85%
Total Assets
Pre-tax Return 3.15% 19.91% 23.73% 11.12%

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on Net Worth
Pre-tax Return 3.09% 19.47% 23.25% 4.35%
on Assets

OWNER’S NAME, Owners – Tel. [INSERT NUMBER] Page 23

 COMPANY NAME

Additional Ratios 2011 2012 2013

Net Profit Margin 3.43% 18.60% 23.39% n.a
Return on Equity 2.20% 13.93% 16.61% n.a

Activity Ratios
Accounts Payable 11.62 12.17 12.17 n.a
Turnover
Payment Days 27 27 29 n.a
Total Asset 0.63 0.73 0.70 n.a
Turnover

Debt Ratios
Debt to Net Worth 0.02 0.02 0.02 n.a
Current Liab. to 1.00 1.00 1.00 n.a
Liab.

Liquidity Ratios
Net Working Capital $62,039 $95,099 $138,861 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 1.59 1.36 1.44 n.a
Current Debt/Total 2% 2% 2% n.a
Assets
Acid Test 20.56 24.91 32.50 n.a
Sales/Net Worth 0.64 0.75 0.71 n.a
Dividend Payout 0.00 0.00 0.00 n.a

OWNER’S NAME, Owners – Tel. [INSERT NUMBER] Page 24

 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Stylist #1 0% $3,600 $3,600 $3,600 $3,600 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400
Barber #1 0% $1,200 $1,200 $1,200 $1,200 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Stylist #2 0% $1,700 $1,700 $1,700 $1,700 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Stylist #3 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Product sales 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Total Sales $7,300 $7,300 $7,300 $7,300 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700

Direct Cost of Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Product Costs $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360
Other $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Subtotal Direct $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560
Cost of Sales

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 Appendix

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Owner (Stylist) 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Receptionist 0% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Shampoo Tech 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total People 3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200

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 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $7,300 $7,300 $7,300 $7,300 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700
Direct Cost of Sales $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560

Gross Margin $6,740 $6,740 $6,740 $6,740 $8,140 $8,140 $8,140 $8,140 $8,140 $8,140 $8,140 $8,140
Gross Margin % 92.33% 92.33% 92.33% 92.33% 93.56% 93.56% 93.56% 93.56% 93.56% 93.56% 93.56% 93.56%

Expenses
Payroll $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200
Marketing/Promotion $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Depreciation $633 $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $683
Rent $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
Utilities 15% $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Independently 15% $500 $515 $530 $546 $562 $579 $596 $614 $632 $651 $671 $691
contracted stylists
Supplies 15% $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Total Operating $7,133 $7,198 $7,213 $7,229 $7,245 $7,262 $7,279 $7,297 $7,315 $7,334 $7,354 $7,374
Expenses

Profit Before Interest ($393) ($458) ($473) ($489) $895 $878 $861 $843 $825 $806 $786 $766
and Taxes
EBITDA $240 $225 $210 $194 $1,578 $1,561 $1,544 $1,526 $1,508 $1,489 $1,469 $1,449
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($118) ($137) ($142) ($147) $269 $263 $258 $253 $248 $242 $236 $230

Net Profit ($275) ($321) ($331) ($342) $627 $615 $603 $590 $578 $564 $550 $536
Net Profit/Sales -3.77% -4.39% -4.54% -4.69% 7.20% 7.06% 6.93% 6.78% 6.64% 6.49% 6.32% 6.16%

Page 3
Appendix

Page 4
 Appendix

Table: Cash Flow

Pro Forma Cash

Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received

Cash from
Operations
Cash Sales $7,300 $7,300 $7,300 $7,300 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700
Subtotal Cash from $7,300 $7,300 $7,300 $7,300 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700
Operations

Additional Cash
Received
Sales Tax, VAT, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Received
New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
(interest-free)
New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Sales of Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New Investment $150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
Subtotal Cash $157,300 $7,300 $7,300 $7,300 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700 $8,700
Received

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures from
Operations
Cash Spending $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200

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 Appendix

Bill Payments $91 $2,742 $2,738 $2,748 $2,774 $3,191 $3,203 $3,215 $3,227 $3,240 $3,253 $3,267
Subtotal Spent on $4,291 $6,942 $6,938 $6,948 $6,974 $7,391 $7,403 $7,415 $7,427 $7,440 $7,453 $7,467
Operations

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 Appendix

Additional
Cash Spent
Sales Tax, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VAT,
HST/GST
Paid Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
of Current
Borrowing
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Principal
Repayment
Purchase $22,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other
Current
Assets
Purchase $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $126,291 $6,942 $6,938 $6,948 $6,974 $7,391 $7,403 $7,415 $7,427 $7,440 $7,453 $7,467
Cash Spent

Net Cash $31,009 $358 $362 $352 $1,726 $1,309 $1,297 $1,285 $1,273 $1,260 $1,247 $1,233
Flow
Cash $31,509 $31,867 $32,229 $32,580 $34,307 $35,616 $36,913 $38,198 $39,471 $40,731 $41,978 $43,210
Balance

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 Appendix

Table: Balance Sheet

Pro Forma
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances

Current Assets
Cash $500 $31,509 $31,867 $32,229 $32,580 $34,307 $35,616 $36,913 $38,198 $39,471 $40,731 $41,978 $43,210
Other Current $0 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000
Assets
Total Current $500 $53,509 $53,867 $54,229 $54,580 $56,307 $57,616 $58,913 $60,198 $61,471 $62,731 $63,978 $65,210
Assets

Long-term
Assets
Long-term $0 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000
Assets
Accumulated $0 $633 $1,316 $1,999 $2,682 $3,365 $4,048 $4,731 $5,414 $6,097 $6,780 $7,463 $8,146
Depreciation
Total Long-term $0 $99,367 $98,684 $98,001 $97,318 $96,635 $95,952 $95,269 $94,586 $93,903 $93,220 $92,537 $91,854
Assets
Total Assets $500 $152,876 $152,551 $152,230 $151,898 $152,942 $153,568 $154,182 $154,784 $155,374 $155,951 $156,515 $157,064

Page 8
 Appendix

Liabilitie Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
s and
Capital

Current
Liabilitie
s
Accounts $0 $2,651 $2,646 $2,656 $2,667 $3,084 $3,096 $3,107 $3,119 $3,132 $3,144 $3,158 $3,171
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowin
g
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Liabilitie
s
Subtotal $0 $2,651 $2,646 $2,656 $2,667 $3,084 $3,096 $3,107 $3,119 $3,132 $3,144 $3,158 $3,171
Current
Liabilitie
s

Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term
Liabilitie
s
Total $0 $2,651 $2,646 $2,656 $2,667 $3,084 $3,096 $3,107 $3,119 $3,132 $3,144 $3,158 $3,171
Liabilitie
s

Paid-in $139,317 $289,317 $289,317 $289,317 $289,317 $289,317 $289,317 $289,317 $289,317 $289,317 $289,317 $289,317 $289,317
Capital
Retained ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817 ($138,817
Earnings ) ) ) ) ) ) ) ) ) ) ) ) )
Earnings $0 ($275) ($596) ($927) ($1,269) ($643) ($28) $575 $1,165 $1,742 $2,307 $2,857 $3,393
Total $500 $150,225 $149,904 $149,573 $149,231 $149,857 $150,472 $151,075 $151,665 $152,242 $152,807 $153,357 $153,893
Capital
Total $500 $152,876 $152,551 $152,230 $151,898 $152,942 $153,568 $154,182 $154,784 $155,374 $155,951 $156,515 $157,064
Liabilitie
s and
Capital

Net $500 $150,225 $149,904 $149,573 $149,231 $149,857 $150,472 $151,075 $151,665 $152,242 $152,807 $153,357 $153,893
Worth

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