Beauty and Hair Salon Financial Model

The model generates three financial statements and return analysis. It is illustrated by professionally designed magazine-quality charts.

Any new business starts with capital investments and construction. The model has a very flexible capex section which covers up to 20 specific beauty salon capex items (can be increased if needed) each having its own cost, acquisition date and useful life period. The model also handles non-capital startup costs.

Once the capex program is completed and necessary equipment and materials are purchased, our salon starts generating profits. The model uses a number of drivers to make a granular analysis of revenues and profits: number of workstations, daily worktime, time and average number of services provided per day. The model also takes into account your ramp-up and monthly seasonality assumptions.
Apart from service revenues, the model calculates retail revenues and profits on various beauty products sold.

In addition to cost of sales of the products, there will be general operating and overhead expenses. The model handles various fixed expenses and those which are driven by revenues.

Many startups are partly financed by debt. Drawing debt at right terms provides leverage and increases investor returns significantly. In this model you can choose the LTV ratio and other loan conditions.

The last stage of analysis is calculating exit proceed (or terminal value). This is needed for proper valuation, even if the shareholders are not planning to exit at that point in time.

Teamed up together, these calculations and schedules are used to build the financial statements (income statement, cash flow statement and balance sheet) and return analysis for your beauty salon startup project.
The findings of the model are illustrated by professionally designed magazine-quality charts.