Part Two: How To Develop Salon Studio Financial Plan.
In part one of the course, we covered the fundamentals of a business plan design. Contained within that document can be found in the financial plan. This portion of your salon studio’s business plan is crucial and cannot be overstated. Financial backers and banks will require a breakdown of money details, and this will be important even if you are financing your own salon and suites. The funding breakdown to turn a business-owning dream into a salon studio reality is not to be underestimated. Since a flair for the beauty industry does always equal to a head for business. We will provide the necessary framework to help you in your dream of owning your own salon studio.
Salon Rental Start-up Budget
Realize how much of personal resources you will invest, remember not to drain every last dime of savings. Because you will want to build or maintain a cushion for unforeseen expenses. Next, generate a complete cost list, include all the cost aspects of opening a salon rental. Include lease rent, personal equipment, inventory, and supplies. The great thing when leasing a salon rental all the overhead, included with the lease rental, are utilities and amenities. In the cost list, include marketing and advertising, things like a website, social media, business cards, and flyers. A press release and monthly marketing workshops are included when signing a lease rental with Salon and Spa Galleria. Also, remember if you don’t have the knowledge of bookkeeping, include this in your cost list.
Salon Leasing Profit & Loss Statement
Know as the P & L, the profit and & loss statement provides a sneak peek in how your salon business is anticipated to perform overtime. Things both good and bad would be included. The good expenses – income generating things like cost of services and product pricing. The bad expenses – things where money will be spent rent, product purchase, and general personal overhead. This statement provides reporting for owners to identify sales generating, revenue increasing opportunities, and expense management. This report is a potent tool when prepared and used. We recommend not skipping this even if you are financing 100% of your salon leasing.
Analysis of Break-even
The section is a visual aid in the form of graphs, it looks at the point in which all the expenses have been enclosed, and revenue earned equals the cost affiliated with doing business.
Salon Suites Cash Flow Prediction
To put it plainly, this is a projection of an estimate of total money coming in and out of the salon suite, along with anticipated changes in liquid assets (things that can be quickly be changed into cash, like checking accounts and inventory)over time. Options to project cash flow are weekly, monthly, and yearly.
Let’s start to put a wrap on the financial planning of your salon studio. The balance sheet is the listing of all spending that was not included in the P&L. Also, assets- items the salon studio uses to earn money, liabilities-debts owed, and equity-capital & items owned completely. You’re provided a quick glance at the salon’s financial position at one fixed period of time.
No matter on what size of salon suites you are dreaming of owning, complete the steps to develop an accurate financial plan, it will stave off debt, maintain a budget, and achieve measurable goals.
Salon and Spa Galleria is a leader in the DFW area salon suites rental industry. Contact us for more information about an exciting opportunity to own your salon studio. We enjoy it when we can help beauty professionals find business independence.
For a salon manager or leasing agent, call 817-917-1416 or 817-823-7105.
To book a tour, reach our concierges call 972-691-7300.
Stay tuned for Part 3 of the series.