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Trend Setters Hair Salon — Sample Plan
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _________________________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. 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 _________________________. Upon request, this document is to be immediately returned to _________________________.
___________________ Name (typed or printed) ___________________ Date
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___________________ Signature
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This is a business plan. It does not imply an offering of securities.
Table of Contents Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.0
Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.2 Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.0
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3.1 Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4.0
Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5.0
Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5.1 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5.2 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6.0
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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1.0
6 7 8 9 11 11
Trend Setters Hair Studio — Sample Plan
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1.0 Executive Summary Trend Setters 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. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work. Our Mission: To supply services and products that enhance our clients' physical appearance and mental relaxation. Our Motto: "The Trend Begins Here!"
The timing is right for starting this new venture. Patiently searching for six months for the perfect location, one was finally found. The demand from the owner's clients, as well as the ambitions of the owner to one day start her own salon, and the procurement of highly professional and qualified beauticians to support the salon, has made this business one of great potential.
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Stacey Spinale, co-owner with Frank Spinale, Jr., her husband, has worked in a prestigious, upscale salon in Houston, Texas for the past two years. Stacey has created a large client following through hard work and dedication. Stacey, and her talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth.
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To achieve our objectives, Trend Setters is seeking $27,495 in additional loan financing. This loan will be paid from the cash flow from the business, and will be collateralized by the assets of the company, and backed by the character, experience, and personal guarantees of the owners.
Highlights
$300,000 $250,000 $200,000
Sales
$150,000
Gross Margin Net Profit
$100,000
$50,000
$0
1997
1998
1999
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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1.1 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
2.1 Start-up Summary
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Trend Setters will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products. What will set Trend Setters apart from the competition is our commitment to providing all of these services in one convenient location.
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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. Leasehold improvements will amount to approximately $32,500, and salon equipment will cost about $27,000.
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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Table: Start-up Start-up Requirements Start-up Expenses Rent deposit Other Total Start-up Expenses
$1,817 $0 $1,817
Start-up Assets Needed Cash Balance on Starting Date Other Current Assets Total Current Assets
$0 $600 $600
Long-term Assets Total Assets Total Requirements
$59,500 $60,100 $61,917
Funding
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Investment Investor 1 Other Other Total Investment
$0 $0 $0 $0
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Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Current Liabilities
$0 $0 $0 $0
Long-term Liabilities Total Liabilities
$61,917 $61,917
Loss at Start-up Total Capital Total Capital and Liabilities
($1,817) ($1,817) $60,100
Start-up
$70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000
$0
Expenses
Assets
Investment
Loans
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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2.2 Company Locations and Facilities The salon will be located in a retail strip mall at 1234A Westwood Road, Houston, Texas. The salon will utilize 1,540 square feet. The location is strategically situated on one of the busiest streets in Houston. It is a high profile area, with easy access from all parts of town.
3.0 Services
3.1 Competitive Comparison
Pr o
Trend Setters is considered an upscale full-service beauty salon. We will offer a wide range of services that include: • Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling, reconstructing, weaving, waving. • Nails: manicures, pedicures, polish, sculptured nails. • Skin Care: European facials, body waxing, massage.
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Trend Setters 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, Stacey has realized, from talking with her clients, that they desire all of the services that we are proposing, but they remain frustrated because they must get their hair done at one place, and nails done at another. Although the focus of Trend Setters is hair services, we do wish to offer our clients the convenience of these other services in one location. There are a number of salons like ours, but they are mainly in the very high income parts of Houston and surrounding areas. We do not intend to compete with these so called "Day Spas." We wish to offer a middle ground for those clients who can't quite afford those highend luxury salons. Our 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 area.
4.0 Marketing Strategy
Our marketing strategy is a simple one: satisfied clients are our best marketing tool. When a client leaves our business with a new look, he or she is broadcasting our name and quality to the public. Most of our clients will be referrals from existing clients. No major advertising campaigns are anticipated. Our research has shown that word of mouth is the best advertising for this type of business. We will, however, run specials throughout the week. We will also ask clients for referrals, and reward them with discounted or free services depending on the number of clients they bring. We 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 we 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.
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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5.0 Management Summary Trend Setters 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.
5.1 Management Team
Pr o
Stacey T. Spinale: Owner. Stacey has been a beautician for two years. A graduate of Bellaire Beauty College in 1994, she has quickly developed the trade skills that have led to her success. She loves dealing with people, and has the drive, ambition, and discipline to manage the business and its employees. This career is her life -- her calling.
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Frank D. Spinale, Jr.: Owner. Frank has a Bachelor's degree in Finance from the University of Houston. He has extensive experience managing people and businesses. He has worked as a business consultant for Office Organizers, Inc., and he is the owner of Guardian Financial Group, a financial services company with over 120 clients and over $1.2 million under management.
5.2 Personnel Plan
The personnel plan calls for a receptionist who will greet customers and receive payments for services and products. There will be five hair stylists, one barber, one nail technician, one facialist, and a massage therapist. 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 a shampoo technician as the business expands. In the first year, assumptions are that there will only be three hair stylists, a barber, and part time nail, facial, and massage technician until the business can build a reputation that will attract others to work there. Table: Personnel Personnel Plan
Receptionist Shampoo Tech. Other Total People Total Payroll
1997 $14,400 $8,000 $64,400 0 $86,800
1998 $15,120 $12,400 $80,000 0 $107,520
1999 $15,876 $13,000 $95,000 0 $123,876
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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6.0 Financial Plan Our 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. 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. We anticipate 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.
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We did not use cost of goods sold in our calculations of net sales because most sales are coming from services. We included all costs, however, in the operating expenses area of the profit and loss table. Product sales are a minimal part of our market. We are not quite sure how much revenue will be derived from products so we took a low ball approach and estimated sales of $800 a month. This figure is included under the title "Other" on the profit and loss table. Also under "Other" in the sales projections table are services such as nails and massages. We are not quite sure how much revenue these two services will generate. We are certain that in time these services will be a large part of our revenue, but to err on the conservative side, we estimate revenues from these services to be only $1,500 a month for the first year. To assure the start-up funds lender that the owners are financially stable, a personal financial statement is enclosed illustrating other sources of income that include interest and dividend income from investments ($2,840), salary income ($29,658), and commission income ($15,000).
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6.1 Break-even Analysis The break-even analysis shows that Trend Setters has a good balance of fixed costs and sufficient sales strength to remain healthy. Our break-even point is only 126 clients a month. This was derived by using an average revenue of $45 per client, and fixed costs of $5,691. Products sales were not included in this figure, but it does include an owner withdrawal of $2,000 a month.
Break-even Analysis $6,000 $4,000 $2,000
($2,000) ($4,000) ($6,000) $0
$2,000
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$0
$4,000
$5,000
$7,000
$9,000
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Monthly break-even point Break-even point = where line intersects with 0
Table: Break-even Analysis
Break-even Analysis: Monthly Units Break-even Monthly Revenue Break-even
126 $5,691
Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost
$45.00 $0.00 $5,691
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6.2 Projected Profit and Loss We expect income to hit $172,800 at the end of the first year of business. It should increase to more than $262,340 by the third year, 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: Profit and Loss Pro Forma Profit and Loss
1997 $172,800 $0 $0 $0 -----------$0 $172,800 100.00%
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Total Cost of Sales Gross Margin Gross Margin % Expenses: Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Other Payroll Taxes Other
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Sales Direct Cost of Sales Production Payroll Other
Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales Include Negative Taxes
$86,800 $36,440 $8,146 $0 $4,200 $1,200 $22,740 $0 $8,680 $0 -----------$168,206 $4,594 $0 $1,286 $3,308 1.91%
TRUE
TRUE
1998 $228,122 $0 $0 $0 -----------$0 $228,122 100.00%
1999 $262,340 $0 $0 $0 -----------$0 $262,340 100.00%
$107,520 $49,840 $8,146 $0 $4,200 $1,200 $22,740 $0 $10,752 $0 -----------$204,398 $23,724 $0 $6,643 $17,081 7.49%
$123,876 $55,240 $8,146 $0 $4,200 $1,200 $22,740 $0 $12,388 $0 -----------$227,790 $34,550 $0 $9,674 $24,876 9.48% TRUE
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6.3 Projected Cash Flow We expect 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.
Cash $6,000 $5,000 $4,000 $3,000
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Net Cash Flow
$2,000 $1,000 $0 ($1,000)
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
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Jul
Cash Balance
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Trend Setters Hair Studio — Sample Plan
1997
1998
1999
$172,800 $0 $172,800
$228,122 $0 $228,122
$262,340 $0 $262,340
$0 $0 $0 $0 $0 $0 $0 $0 $172,800
$0 $0 $0 $0 $0 $0 $0 $0 $228,122
$0 $0 $0 $0 $0 $0 $0 $0 $262,340
1997
1998
1999
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Table: Cash Flow Pro Forma Cash Flow
$0 $155,834 $155,834
$0 $201,325 $201,325
$0 $228,612 $228,612
$0 $0 $0 $0 $12,000 $0 $0 $0 $167,834
$0 $0 $0 $0 $12,000 $0 $0 $0 $213,325
$0 $0 $0 $0 $12,000 $0 $0 $0 $240,612
$4,966 $4,966
$14,797 $19,763
$21,728 $41,491
Cash Received Cash from Operations: Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Non Operating (Other) Income Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations: Cash Spending Payment of Accounts Payable Subtotal Spent on Operations
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Additional Cash Spent Non Operating (Other) Expense Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance
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6.4 Projected Balance Sheet As shown in the balance sheet, we expect a healthy growth in net worth, from approximately $1,491 in year one to $43,448 by the end of year three. Table: Balance Sheet Pro Forma Balance Sheet
Liabilities and Capital Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
1998 $19,763 $600 $20,363
1999 $41,491 $600 $42,091
$59,500 $8,146 $51,354 $56,920
$59,500 $16,292 $43,208 $63,571
$59,500 $24,438 $35,062 $77,153
1997 $5,512 $0 $0 $5,512
1998 $7,082 $0 $0 $7,082
1999 $7,788 $0 $0 $7,788
$49,917 $55,429
$37,917 $44,999
$25,917 $33,705
$0 $1,491 $17,081 $18,572 $63,571 $18,572
$0 $18,572 $24,876 $43,448 $77,153 $43,448
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Long-term Liabilities Total Liabilities
1997 $4,966 $600 $5,566
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Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth
$0 ($1,817) $3,308 $1,491 $56,920 $1,491
6.5 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.
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Table: Ratios Ratio Analysis
1997 0.00%
1998 32.02%
1999 15.00%
Industry Profile 7.50%
0.00% 0.00% 1.05% 9.78% 90.22% 100.00%
0.00% 0.00% 0.94% 32.03% 67.97% 100.00%
0.00% 0.00% 0.78% 54.56% 45.44% 100.00%
11.60% 4.70% 36.10% 52.40% 47.60% 100.00%
0.00% 87.70% 87.70% 12.30%
0.00% 59.65% 59.65% 40.35%
0.00% 33.59% 33.59% 66.41%
31.90% 26.80% 58.70% 41.30%
100.00% 100.00% 98.09% 2.08% 2.66%
100.00% 100.00% 92.51% 1.67% 10.40%
100.00% 100.00% 90.52% 1.60% 13.17%
100.00% 0.00% 73.40% 2.50% 3.20%
1.01 1.01 97.38% 308.18% 8.07%
2.88 2.88 70.79% 127.74% 37.32%
5.40 5.40 43.69% 79.52% 44.78%
1.79 1.34 58.70% 5.20% 12.50%
1996 $0
1997 $0
1998 $0
Industry $105,908 68.50%
1997 1.91% 221.89%
1998 7.49% 91.97%
1999 9.48% 57.25%
Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover
0.00 0 0.00 29.27 11 3.04
0.00 0 0.00 28.65 136 3.59
0.00 0 0.00 29.45 142 3.40
n.a n.a n.a n.a
Debt Ratios Debt to Net Worth Current Liab. to Liab.
37.18 0.10
2.42 0.16
0.78 0.23
n.a n.a
Liquidity Ratios Net Working Capital Interest Coverage
$54 0.00
$13,281 0.00
$34,303 0.00
n.a n.a
0.33 10% 1.01 115.92 0.00
0.28 11% 2.88 12.28 0.00
0.29 10% 5.40 6.04 0.00
n.a n.a n.a n.a n.a
Sales Growth Percent of Total Assets Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets
Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes
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Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets
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Current Liabilities Long-term Liabilities Total Liabilities Net Worth
Business Vitality Profile Sales per Employee Survival Rate Additional Ratios Net Profit Margin Return on Equity
Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
n.a n.a
n.a
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Appendix Table: Sales Forecast Aug $3,600 $3,600 $1,200 $1,700 $2,500 $12,600
Sep $3,600 $3,600 $1,200 $1,700 $2,500 $12,600
Oct $3,600 $3,600 $1,200 $1,700 $2,500 $12,600
Nov $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
Jul $0 $0 $0 $0 $0 $0
Aug $0 $0 $0 $0 $0 $0
Sep $0 $0 $0 $0 $0 $0
Oct $0 $0 $0 $0 $0 $0
Nov $0 $0 $0 $0 $0 $0
Jan $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
Feb $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
Mar $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
Apr $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
May $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
Jun $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
Jan $0 $0 $0 $0 $0 $0
Feb $0 $0 $0 $0 $0 $0
Mar $0 $0 $0 $0 $0 $0
Apr $0 $0 $0 $0 $0 $0
May $0 $0 $0 $0 $0 $0
Jun $0 $0 $0 $0 $0 $0
Dec $0 $0 $0 $0 $0 $0
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Direct Cost of Sales Owner Stylist #1 Barber #1 Stylist #2 Other Subtotal Direct Cost of Sales
Dec $4,400 $4,400 $1,500 $2,000 $3,000 $15,300
Sa
Jul $3,600 $3,600 $1,200 $1,700 $2,500 $12,600
o
Sales Forecast Sales Owner Stylist #1 Barber #1 Stylist #2 Other Total Sales
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Appendix Trend Setters Hair Studio — Sample Plan
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Appendix Table: Personnel Personnel Plan Sep $1,200 $0 $4,700 0 $5,900
Oct $1,200 $0 $4,700 0 $5,900
Nov $1,200 $1,000 $5,700 0 $7,900
Dec $1,200 $1,000 $5,700 0 $7,900
Jan $1,200 $1,000 $5,700 0 $7,900
Feb $1,200 $1,000 $5,700 0 $7,900
Mar $1,200 $1,000 $5,700 0 $7,900
Apr $1,200 $1,000 $5,700 0 $7,900
May $1,200 $1,000 $5,700 0 $7,900
Jun $1,200 $1,000 $5,700 0 $7,900
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Aug $1,200 $0 $4,700 0 $5,900
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Jul $1,200 $0 $4,700 0 $5,900
Receptionist Shampoo Tech. Other Total People Total Payroll
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Appendix Trend Setters Hair Studio — Sample Plan
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Appendix Trend Setters Hair Studio — Sample Plan
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Appendix Table: General Assumptions General Assumptions Aug 2 9.00% 0.00% 28.00% 0.00%
Sep 3 9.00% 0.00% 28.00% 0.00%
Oct 4 9.00% 0.00% 28.00% 0.00%
Nov 5 9.00% 0.00% 28.00% 0.00%
Dec 6 9.00% 0.00% 28.00% 0.00%
Jan 7 9.00% 0.00% 28.00% 0.00%
Feb 8 9.00% 0.00% 28.00% 0.00%
Mar 9 9.00% 0.00% 28.00% 0.00%
Apr 10 9.00% 0.00% 28.00% 0.00%
May 11 9.00% 0.00% 28.00% 0.00%
Jun 12 9.00% 0.00% 28.00% 0.00%
$5,900 $11,490
$5,900 $11,620
$5,900 $11,764
$5,900 $11,908
$7,900 $14,248
$7,900 $14,248
$7,900 $14,248
$7,900 $14,248
$7,900 $14,392
$7,900 $14,392
$7,900 $14,392
$7,900 $14,392
Sa
Jul 1 9.00% 0.00% 28.00% 0.00%
us
in
es
sP
la
n
Pr
o
Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Calculated Totals Payroll Expense New Accounts Payable
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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Appendix Table: Profit and Loss Pro Forma Profit and Loss
10%
Oct $12,600 $0 $0 $0 -----------$0 $12,600 100.00%
Nov $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
Dec $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
$5,900 $2,470 $633 $0 $350 $100 $1,895 $0 $590 $0 -----------$11,938 $662 $0 $185 $477 3.78%
$5,900 $2,670 $683 $0 $350 $100 $1,895 $0 $590 $0 -----------$12,188 $412 $0 $115 $297 2.35%
$5,900 $2,870 $683 $0 $350 $100 $1,895 $0 $590 $0 -----------$12,388 $212 $0 $59 $153 1.21%
$5,900 $3,070 $683 $0 $350 $100 $1,895 $0 $590 $0 -----------$12,588 $12 $0 $3 $9 0.07%
$7,900 $3,070 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,788 $512 $0 $143 $369 2.41%
$7,900 $3,070 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,788 $512 $0 $143 $369 2.41%
Jan $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
Feb $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
Mar $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
Apr $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
May $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
Jun $15,300 $0 $0 $0 -----------$0 $15,300 100.00%
$7,900 $3,070 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,788 $512 $0 $143 $369 2.41%
$7,900 $3,070 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,788 $512 $0 $143 $369 2.41%
$7,900 $3,270 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,988 $312 $0 $87 $225 1.47%
$7,900 $3,270 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,988 $312 $0 $87 $225 1.47%
$7,900 $3,270 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,988 $312 $0 $87 $225 1.47%
$7,900 $3,270 $683 $0 $350 $100 $1,895 $0 $790 $0 -----------$14,988 $312 $0 $87 $225 1.47%
o
Sa
Sep $12,600 $0 $0 $0 -----------$0 $12,600 100.00%
us
in
es
sP
la
Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales Include Negative Taxes
Aug $12,600 $0 $0 $0 -----------$0 $12,600 100.00%
Pr
Total Cost of Sales Gross Margin Gross Margin % Expenses: Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Other Payroll Taxes Other
Jul $12,600 $0 $0 $0 -----------$0 $12,600 100.00%
n
Sales Direct Cost of Sales Production Payroll Other
m
Appendix Trend Setters Hair Studio — Sample Plan
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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Appendix Trend Setters Hair Studio — Sample Plan
0.00%
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
$12,600 $0 $12,600
$12,600 $0 $12,600
$12,600 $0 $12,600
$12,600 $0 $12,600
$15,300 $0 $15,300
$15,300 $0 $15,300
$15,300 $0 $15,300
$15,300 $0 $15,300
$15,300 $0 $15,300
$15,300 $0 $15,300
$15,300 $0 $15,300
$15,300 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $12,600
$0 $0 $0 $0 $0 $0 $0 $0 $12,600
$0 $0 $0 $0 $0 $0 $0 $0 $12,600
$0 $0 $0 $0 $0 $0 $0 $0 $12,600
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
$0 $0 $0 $0 $0 $0 $0 $0 $15,300
Jul
Aug
Sep
$0 $6,657 $6,657
$0 $11,495 $11,495
$0 $11,625 $11,625
Additional Cash Spent Non Operating (Other) Expense Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent
$0 $0 $0 $0 $1,000 $0 $0 $0 $7,657
$0 $0 $0 $0 $1,000 $0 $0 $0 $12,495
$0 $0 $0 $0 $1,000 $0 $0 $0 $12,625
Dec
Jan
Feb
Mar
Apr
May
Jun
$0 $11,769 $11,769
$0 $14,113 $14,113
$0 $14,248 $14,248
$0 $14,248 $14,248
$0 $14,248 $14,248
$0 $14,253 $14,253
$0 $14,392 $14,392
$0 $14,392 $14,392
$0 $14,392 $14,392
$0 $0 $0 $0 $1,000 $0 $0 $0 $12,769
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,113
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,248
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,248
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,248
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,253
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,392
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,392
$0 $0 $0 $0 $1,000 $0 $0 $0 $15,392
($169) $4,854
$187 $5,041
$52 $5,093
$52 $5,145
$52 $5,196
$47 $5,243
($92) $5,151
($92) $5,058
($92) $4,966
la
sP $4,943 $4,943
Nov
$105 $5,049
($25) $5,023
us
in
es
Net Cash Flow Cash Balance
Oct
n
Expenditures Expenditures from Operations: Cash Spending Payment of Accounts Payable Subtotal Spent on Operations
Sa
Additional Cash Received Non Operating (Other) Income Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received
Aug
o
Cash Received Cash from Operations: Cash Sales Cash from Receivables Subtotal Cash from Operations
Jul
Pr
Pro Forma Cash Flow
m
Appendix Table: Cash Flow
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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Appendix Table: Balance Sheet Pro Forma Balance Sheet Jul $4,943 $600 $5,543
Aug $5,049 $600 $5,649
Sep $5,023 $600 $5,623
Oct $4,854 $600 $5,454
Nov $5,041 $600 $5,641
$59,500 $0 $59,500 $60,100
$59,500 $633 $58,867 $64,410
$59,500 $1,316 $58,184 $63,833
$59,500 $1,999 $57,501 $63,124
$59,500 $2,682 $56,818 $62,272
$59,500 $3,365 $56,135 $61,776
$0 $0 $0 $0
Jul $4,834 $0 $0 $4,834
Aug $4,959 $0 $0 $4,959
Sep $5,099 $0 $0 $5,099
Oct $5,238 $0 $0 $5,238
Long-term Liabilities Total Liabilities
$61,917 $61,917
$60,917 $65,751
$59,917 $64,876
$58,917 $64,016
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth
$0 ($1,817) $0 ($1,817) $60,100 ($1,817)
$0 ($1,817) $477 ($1,340) $64,410 ($1,340)
$0 ($1,817) $773 ($1,044) $63,833 ($1,044)
$0 ($1,817) $926 ($891) $63,124 ($891)
Liabilities and Capital
Jan $5,145 $600 $5,745
Feb $5,196 $600 $5,796
Mar $5,243 $600 $5,843
Apr $5,151 $600 $5,751
May $5,058 $600 $5,658
Jun $4,966 $600 $5,566
$59,500 $4,048 $55,452 $61,145
$59,500 $4,731 $54,769 $60,514
$59,500 $5,414 $54,086 $59,882
$59,500 $6,097 $53,403 $59,246
$59,500 $6,780 $52,720 $58,471
$59,500 $7,463 $52,037 $57,695
$59,500 $8,146 $51,354 $56,920
Dec $5,373 $0 $0 $5,373
Jan $5,373 $0 $0 $5,373
Feb $5,373 $0 $0 $5,373
Mar $5,512 $0 $0 $5,512
Apr $5,512 $0 $0 $5,512
May $5,512 $0 $0 $5,512
Jun $5,512 $0 $0 $5,512
$57,917 $63,155
$56,917 $62,290
$55,917 $61,290
$54,917 $60,290
$53,917 $59,290
$52,917 $58,429
$51,917 $57,429
$50,917 $56,429
$49,917 $55,429
$0 ($1,817) $935 ($882) $62,272 ($882)
$0 ($1,817) $1,303 ($514) $61,776 ($514)
$0 ($1,817) $1,672 ($145) $61,145 ($145)
$0 ($1,817) $2,040 $223 $60,514 $223
$0 ($1,817) $2,409 $592 $59,882 $592
$0 ($1,817) $2,634 $817 $59,246 $817
$0 ($1,817) $2,858 $1,041 $58,471 $1,041
$0 ($1,817) $3,083 $1,266 $57,695 $1,266
$0 ($1,817) $3,308 $1,491 $56,920 $1,491
n
Pr
Nov $5,373 $0 $0 $5,373
us
in
es
sP
la
Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
Dec $5,093 $600 $5,693
o
Starting Balances $0 $600 $600
Sa
Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
m
Appendix Trend Setters Hair Studio — Sample Plan
Copyright © Palo Alto Software, Inc. 2002 All rights reserved. www.paloalto.com Not for reproduction, publication, or distribution.
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