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

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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.

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I expect to manage cash flow over the next three years simply by the growth of the cash flow of the business. The business will generate more than enough cash flow to cover all of its expenses.

Cash

As shown in the balance sheet, we expect a healthy growth in net worth, from approximately £1,491 in year one to £43,448 by the end of year three. This should assure me from being debt free and able ...

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