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Equipment Rental icon Retail Property Sub-leasing Business Plan

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Galerie de Beaute

Company Summary

Galerie de Beaute is best described as a mall of beauty salon professionals. Galerie de Beaute will lease fully equipped units to state licensed beauty professionals. The standard Galerie de Beaute lease will include private locking units with telephone jacks, shampoo bowl, styling station, hair dryer, and styling chair. The benefits of doing business at Galerie de Beaute is as follows: the maintenance service of the common area, utilities included in the lease payment, professional liability insurance, and on-site coin operated washer and dryer.

The relationship between Galerie de Beaute and potential applicants will be that of landlord and tenant. The tenant will be responsible for registering their ‘salon’ with the Division of Professional Regulation Board of Cosmetology and Barbering and acquiring business licensure.

2.1 Company Ownership

Galerie de Beaute has been established as a limited liability corporation by partners Marcela Wave and Curley Lockes. The ownership is based on the weight of the partners working capital input.

2.2 Start-up Summary

Equipment will be purchased to furnish each unit. The average cost of equipment to furnish a unit is approximately $1,800. It is estimated that we will have 24 units for rent; thus equipment cost is $44,000. Construction of 24 individual units and the common areas (including restrooms and laundry facilities) has been estimated at $140,000. Other expenses such as incorporation, legal and advertising come to $2,400. The first month’s rent and security totaled $8,000. Office and common areas equipment and furnishings come to $6,000 in expensed equipment and current assets. Total start-up requirements including cash on-hand are estimated at $240,000. 

Retail property sub-leasing business plan, company summary chart image

Start-up Expenses
Legal $535
Stationery etc. $40
Brochures $300
Consultants $1,000
Insurance $125
Rent $8,000
Leasehold Improvements/Unit Construction $140,000
Expensed Equipment $4,000
Other $0
Total Start-up Expenses $154,000
Start-up Assets
Cash Required $40,000
Other Current Assets $2,000
Long-term Assets $44,000
Total Assets $86,000
Total Requirements $240,000
Start-up Funding
Start-up Expenses to Fund $154,000
Start-up Assets to Fund $86,000
Total Funding Required $240,000
Non-cash Assets from Start-up $46,000
Cash Requirements from Start-up $40,000
Additional Cash Raised $0
Cash Balance on Starting Date $40,000
Total Assets $86,000
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Planned Investment
Owner $100,000
Owner $40,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $140,000
Loss at Start-up (Start-up Expenses) ($154,000)
Total Capital ($14,000)
Total Capital and Liabilities $86,000
Total Funding $240,000