Question
INVESTMENT 1) Equipment - 5 Barber Chairs at a cost of $239 each (you should include a detail in an Appendix) - The cost of
INVESTMENT
1) Equipment
- 5 Barber Chairs at a cost of $239 each (you should include a detail in an Appendix)
- The cost of renovation of the salon is $15,234 (No need for an estimate, but this will be ideal)
- Other equipment: - 5 Blow Dryer @ $50 each = $250, 5 Iron Hair @ 125 = $625, 5 Scissors Pro Hair Cutting @ $50 each = $250, etc. -> Grand Total = $1,125 + etc
2) Supplies
- Supplies = More details etc. = $5,000
3) Working Capital
- Reserve for Renting a place for a year = $ 36,000 ($3,000 times 12)
- Salaries (Minimum wage plus tips for entry-level Hairdresser and Market Salary for an advanced Stylist)
- Marketing: Flyers on Local venues (Supermarkets, handled on streets, etc) at a cost of $2,000. Direct Marketing (Flyers by mail: Valpak), etc
PROJECTION OF SALES
This small company will offer different services at different prices as an example: $30 Blow Dryer, $120 Haircut and Shampoo, $100 Coloring and Shampoo, $120 highlights, etc.
The projections will be done by day (Monday to Sunday). Of course Friday, Saturday, and Sunday will have the most of the sales). Also during Christmas, previous to New Year's Eve. Graduations in June, etc.
The number of Services will be estimated using a moderate scenario (use your common sense and a spreadsheet).
You will assume taxes of 10% and linear depreciation of Fixed Assets in 3 years with a residual value of zero.
- Imagination in the project, Images, Pictures, Explanations (why is it a good idea? what is my market? etc)
- Detail: Calculation of Investment, Calculation of Cash Flows, Calculation of IRR (Internal rate of return)
- Is this project feasible?
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