Financial Plan for Day Spa

6. Financial Analysis

The premier element in our financial analysis is to have the ability to initiate, maintain, and improve the factors that create and increase our cash flow. In order to do this, we must ensure the following:

1. We must create visibility so as to create customer flow

2. We must ensure we maintain a dependable, cheerful employee force so as to minimize turnover of staff.

3. We must create a quick turnaround on our retail products to maintain a sustainable stock level.

6-1 Start-Up Summary

The following table outlines start-up expenses related to leasing, build-out and start-up expenses in opening The Executive Day Spa.  The start-up costs will require funding through financing through a small business loan or bank financing.

6-2 Important Assumptions

The key underlying assumptions of our financial plan are shown below:

1. We assume access to capital income and financing to justify our financial plan.

2. We assume our financial progress based on realistic sales to minimum sales against high expenses.

3. We assume there will not be an economic crash that would hamper our target market’s ability to purchase their personal luxury needs.

4. We assume their will not be a major recession and that the economy will be strong.

6-3 Key Financial Indicators

The following reflects our break-even analysis to show what we need to make in sales to offset our variable costs. One key financial indicator used is the sales average each barber averages with seven clients per day. These same indicators were used for each nail technician averaging four clients per day, as well as, massage therapists averaging three clients per day.

In calculating our break-even analysis we assume monthly estimated fixed costs which include payroll, rent, utilities, and other operating costs. Our payroll is only a projected estimate of $40,677 per month. The estimate below does not include income from any other sources and is based on a...