Hair Salon Business Plan

Start your plan
Start my business plan

Start your own hair salon business plan

Cranium Filament Reductions

Financial Plan

Forecast

Key Assumptions

Our Key Assumptions: 

– Men would like to have great haircuts and do not mind paying for them 

– Men and women need hair products 

– Our cost for men’s haircuts will be industry standard of 43% and our cost for women’s haircuts, children’s haircuts and products are 27%

– Our friends  and family see the merit of our business and would be happy to give us the cash to run the business. 

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

Cranium Filament Reductions will incur the following start-up costs:

  • Computer with point of sale terminal.
  • Computer with printer for back office.
  • Five cutting stations, each station requires a barber chair, cabinet, large mirror, blow dryer, curling iron, electric razor, several pairs of scissors, spray bottle, two sided mirror, and assorted combs and brushes.
  • Desk for reception area.
  • Three couches for the reception area.
  • Display shelf for sale of retail products.
  • Assorted plants.
  • Assorted toys for the children.
  • Legal fees for business formation and generation/review of contracts.

Please note that the following items that are assets to be used for more than a year will be considered a long-term assets and will be depreciated using the straight-line method accepted by G.A.A.P.

Sources of Funds

Susan will be contributing $60,000. The additional $45,000 will come from a business loan. 

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $288,129 $388,360 $534,360
Operating Expenses
Salaries & Wages $208,800 $248,976 $345,124
Employee Related Expenses $41,760 $49,795 $69,025
Utilities $1,200 $1,200 $1,200
Rent $24,000 $24,000 $24,000
Insurance $1,500 $1,500 $1,500
Interest Incurred $1,547 $1,425 $1,138
Depreciation and Amortization $1,465 $1,465 $1,465
Gain or Loss from Sale of Assets
Income Taxes $1,178 $9,000 $13,637
Total Expenses $388,019 $481,000 $654,729
Net Profit $6,678 $51,000 $77,271

Projected Balance Sheet

2020 2021 2022
Cash $84,344 $87,260 $99,844
Accounts Receivable $0 $0 $0
Inventory $11,970 $16,470 $16,470
Other Current Assets
Total Current Assets $96,314 $103,731 $116,314
Long-Term Assets $14,650 $14,650 $14,650
Accumulated Depreciation ($1,465) ($2,930) ($4,395)
Total Long-Term Assets $13,185 $11,720 $10,255
Accounts Payable $2,839 $3,739 $3,739
Income Taxes Payable $1,178 $2,254 $3,411
Sales Taxes Payable $0 $0 $0
Short-Term Debt $7,024 $7,310 $7,608
Prepaid Revenue
Total Current Liabilities $11,041 $13,303 $14,758
Long-Term Debt $31,780 $24,470 $16,862
Long-Term Liabilities $31,780 $24,470 $16,862
Paid-In Capital $60,000 $60,000 $60,000
Retained Earnings ($33,322) ($42,322)
Earnings $6,678 $51,000 $77,271

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $6,678 $51,000 $77,271
Depreciation & Amortization $1,465 $1,465 $1,465
Change in Accounts Receivable $0 $0 $0
Change in Inventory ($11,970) ($4,500) $0
Change in Accounts Payable $2,839 $900 $0
Change in Income Tax Payable $1,178 $1,076 $1,157
Change in Sales Tax Payable $0 $0 $0
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold ($14,650)
Investments Received $60,000
Dividends & Distributions ($40,000) ($60,000)
Change in Short-Term Debt $7,024 $286 $298
Change in Long-Term Debt $31,780 ($7,310) ($7,608)
Cash at Beginning of Period $0 $84,344 $87,260
Net Change in Cash $84,344 $2,917 $12,583
Download link edge graphic Download this plan

Start your own hair salon business plan

Start your own business plan

LivePlan logo Start planning

Your business plan can look as polished and professional as this sample plan. It's fast and easy, with LivePlan.

Get the Bplans newsletter:

Expert business tips and advice delivered weekly.