The break-even analysis shows that my business has a good balance of fixed costs and sufficient sales strength to remain healthy for now and for a long period of time to come. My break-even point is only 126 clients a month
Many different businesses have different goals that they have set to be targeted. My main goal is to be a profitable business. The business will not have to wait long for clients to learn about it since the stylists will already have an existing client base after it has been opened for a little while
The break-even analysis shows that my business has a good balance of fixed costs and sufficient sales strength to remain healthy for now and for a long period of time to come. My break-even point is only 126 clients a month. This was derived by using average revenue of £45 per client, and fixed costs of £5,691. Products sales were not included in this figure.
Expected profit and loss.
I expect an income of £172,800 at the end of the first year of business. It should increase to more than £262,340 by the third year, as the reputation of the salon, its stylists and services become apparent to the general public. Second year revenues also anticipate the addition of one new stylist.