Cranium Filament Reductions

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Hair Salon Business Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Males 0% $0 $5,484 $6,254 $8,547 $16,455 $18,545 $21,545 $23,555 $26,874 $28,745 $29,854 $31,254
Females 0% $0 $548 $625 $855 $1,646 $1,855 $2,155 $2,356 $2,687 $2,875 $2,985 $3,125
Women with small children 0% $0 $55 $63 $85 $165 $185 $215 $236 $269 $287 $299 $313
Retail hair care products 0% $0 $913 $1,041 $1,423 $2,740 $3,088 $3,587 $3,922 $4,475 $4,786 $4,971 $5,204
Total Sales $0 $7,000 $7,983 $10,910 $21,005 $23,673 $27,502 $30,068 $34,305 $36,693 $38,109 $39,896
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Males $0 $658 $750 $1,026 $1,975 $2,225 $2,585 $2,827 $3,225 $3,449 $3,582 $3,750
Females $0 $66 $75 $103 $197 $223 $259 $283 $322 $345 $358 $375
Women with small children $0 $7 $8 $10 $20 $22 $26 $28 $32 $34 $36 $38
Retail hair care products $0 $365 $417 $569 $1,096 $1,235 $1,435 $1,569 $1,790 $1,914 $1,988 $2,082
Subtotal Direct Cost of Sales $0 $1,096 $1,250 $1,708 $3,288 $3,705 $4,305 $4,706 $5,369 $5,743 $5,965 $6,245
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Susan 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Receptionist 0% $0 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Part-time hair stylist 0% $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Part-time hair stylist 0% $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Part-time hair stylist 0% $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Part-time hair stylist 0% $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Part-time hair stylist 0% $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Part-time hair stylist 0% $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Total People 1 8 8 8 8 8 8 8 8 8 8 8
Total Payroll $3,000 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $0 $7,000 $7,983 $10,910 $21,005 $23,673 $27,502 $30,068 $34,305 $36,693 $38,109 $39,896
Direct Cost of Sales $0 $1,096 $1,250 $1,708 $3,288 $3,705 $4,305 $4,706 $5,369 $5,743 $5,965 $6,245
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $1,096 $1,250 $1,708 $3,288 $3,705 $4,305 $4,706 $5,369 $5,743 $5,965 $6,245
Gross Margin $0 $5,905 $6,734 $9,203 $17,717 $19,967 $23,198 $25,362 $28,935 $30,950 $32,144 $33,651
Gross Margin % 0.00% 84.35% 84.35% 84.35% 84.35% 84.35% 84.35% 84.35% 84.35% 84.35% 84.35% 84.35%
Expenses
Payroll $3,000 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600
Sales and Marketing and Other Expenses $100 $122 $122 $122 $122 $122 $122 $122 $122 $122 $122 $122
Depreciation $122 $122 $122 $122 $122 $122 $122 $122 $122 $122 $122 $122
Leased Equipment 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Insurance $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 15% $450 $3,390 $3,390 $3,390 $3,390 $3,390 $3,390 $3,390 $3,390 $3,390 $3,390 $3,390
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $5,897 $28,459 $28,459 $28,459 $28,459 $28,459 $28,459 $28,459 $28,459 $28,459 $28,459 $28,459
Profit Before Interest and Taxes ($5,897) ($22,554) ($21,725) ($19,256) ($10,742) ($8,492) ($5,261) ($3,097) $476 $2,491 $3,685 $5,192
EBITDA ($5,775) ($22,432) ($21,603) ($19,134) ($10,620) ($8,370) ($5,139) ($2,975) $598 $2,613 $3,807 $5,314
Interest Expense $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($6,272) ($22,929) ($22,100) ($19,631) ($11,117) ($8,867) ($5,636) ($3,472) $101 $2,116 $3,310 $4,817
Net Profit/Sales 0.00% -327.55% -276.83% -179.94% -52.93% -37.45% -20.49% -11.55% 0.30% 5.77% 8.69% 12.07%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $0 $7,000 $7,983 $10,910 $21,005 $23,673 $27,502 $30,068 $34,305 $36,693 $38,109 $39,896
Subtotal Cash from Operations $0 $7,000 $7,983 $10,910 $21,005 $23,673 $27,502 $30,068 $34,305 $36,693 $38,109 $39,896
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $7,000 $7,983 $10,910 $21,005 $23,673 $27,502 $30,068 $34,305 $36,693 $38,109 $39,896
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $3,000 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600 $22,600
Bill Payments $105 $3,285 $7,213 $7,377 $7,872 $9,414 $9,837 $10,430 $10,840 $11,494 $11,863 $12,086
Subtotal Spent on Operations $3,105 $25,885 $29,813 $29,977 $30,472 $32,014 $32,437 $33,030 $33,440 $34,094 $34,463 $34,686
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $3,105 $25,885 $29,813 $29,977 $30,472 $32,014 $32,437 $33,030 $33,440 $34,094 $34,463 $34,686
Net Cash Flow ($3,105) ($18,885) ($21,830) ($19,067) ($9,468) ($8,341) ($4,935) ($2,962) $864 $2,599 $3,646 $5,210
Cash Balance $93,475 $74,590 $52,760 $33,694 $24,226 $15,885 $10,950 $7,988 $8,852 $11,452 $15,098 $20,307
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $96,580 $93,475 $74,590 $52,760 $33,694 $24,226 $15,885 $10,950 $7,988 $8,852 $11,452 $15,098 $20,307
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $96,580 $93,475 $74,590 $52,760 $33,694 $24,226 $15,885 $10,950 $7,988 $8,852 $11,452 $15,098 $20,307
Long-term Assets
Long-term Assets $7,320 $7,320 $7,320 $7,320 $7,320 $7,320 $7,320 $7,320 $7,320 $7,320 $7,320 $7,320 $7,320
Accumulated Depreciation $0 $122 $244 $366 $488 $610 $732 $854 $976 $1,098 $1,220 $1,342 $1,464
Total Long-term Assets $7,320 $7,198 $7,076 $6,954 $6,832 $6,710 $6,588 $6,466 $6,344 $6,222 $6,100 $5,978 $5,856
Total Assets $103,900 $100,673 $81,666 $59,714 $40,526 $30,936 $22,473 $17,416 $14,332 $15,074 $17,552 $21,076 $26,163
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $3,045 $6,967 $7,116 $7,559 $9,086 $9,490 $10,069 $10,458 $11,099 $11,460 $11,674 $11,945
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $3,045 $6,967 $7,116 $7,559 $9,086 $9,490 $10,069 $10,458 $11,099 $11,460 $11,674 $11,945
Long-term Liabilities $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000 $45,000
Total Liabilities $45,000 $48,045 $51,967 $52,116 $52,559 $54,086 $54,490 $55,069 $55,458 $56,099 $56,460 $56,674 $56,945
Paid-in Capital $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
Retained Earnings ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100) ($1,100)
Earnings $0 ($6,272) ($29,201) ($51,302) ($70,933) ($82,050) ($90,917) ($96,553) ($100,025) ($99,924) ($97,808) ($94,499) ($89,682)
Total Capital $58,900 $52,628 $29,699 $7,598 ($12,033) ($23,150) ($32,017) ($37,653) ($41,125) ($41,024) ($38,908) ($35,599) ($30,782)
Total Liabilities and Capital $103,900 $100,673 $81,666 $59,714 $40,526 $30,936 $22,473 $17,416 $14,332 $15,074 $17,552 $21,076 $26,163
Net Worth $58,900 $52,628 $29,699 $7,598 ($12,033) ($23,150) ($32,017) ($37,653) ($41,125) ($41,024) ($38,908) ($35,599) ($30,782)