Galerie de Beaute
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.
|Leasehold Improvements/Unit Construction||$140,000|
|Total Start-up Expenses||$154,000|
|Other Current Assets||$2,000|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$140,000|
|Loss at Start-up (Start-up Expenses)||($154,000)|
|Total Capital and Liabilities||$86,000|