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Description of beauty salon business. Description of the beauty salon

Features of opening a beauty salon. The main analysis of the segmentation of clients of the hairdressing service. Conducting competition in the market. The main methods in activating the sale of services. Characteristics of production, organizational and financial plans.

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Service list

To open a beauty salon you will need start-up capital, which can be attracted in part or in whole in the form of credit funds. In 2020, entrepreneurs can take advantage of state program aimed at supporting small and medium businesses.

Immediately you need to decide on the list of services that the beauty salon will provide. Let's take the following as an example:

hairdressing services- haircuts for women, men, children;
manicure;
pedicure;
cosmetology services, including hair removal, peeling, eyebrow, body and face skin care;
massage;
solarium.

To open a beauty salon with a similar list of services, a room of 125 m 2 will be required, which will be divided as follows:

Reception - administrator's area with a counter and a wardrobe - 11 m 2.
Hairdressing hall - 26 m 2.
Hair care cabinet - 12 m 2. This is a specialized room where washing, waving and hair coloring will be carried out, do not confuse it with a hairdressing room.
Office of pedicure and manicure - 12 m 2.
Massage room - 16 m 2.
Solarium - 15 m 2.
Make-up artist's office - 8 m 2.
Room for staff - 15 m 2.
Utility room - 10 m 2.

At the same time, in our business plan, the cost of funds for the repair and re-equipment of the premises will average 240-280 thousand rubles.

The rent of such premises will require 70–80 thousand rubles a month, the acquisition will cost 5.6–7.2 million rubles, depending on the district of the city (prices are taken as average regional centers western regions of the Russian Federation).

The premises may be located on the ground floor of a residential building and must be removed from the housing stock. It is desirable that it be a busy place close to entertainment, shopping, business centers, as well as public transport stops.

The equipment costs shown below are weighted averages and may vary depending on the manufacturer, the material from which it is made and its features. The business plan implies detailed description equipment for each room.

The first year of operation for a beauty salon is crucial. At this stage, a team, a reputation are formed, and the main and largest investments are made. If organizational mistakes are made, it will be extremely difficult to achieve success in subsequent periods, and therefore it is important to think over the strategy and concept of your business from the very beginning. In solving this problem, a ready-made business plan for a beauty salon with calculations will help you, which will allow you to take into account all the main categories of expenses, correctly analyze the consumer and competitor market, and also evaluate potential income.

Business description or resume of a beauty salon

In order to correctly draw up a business plan for a beauty salon, it is necessary to establish the main parameters of the future enterprise or, speaking in simple words write a brief description of the business. This will allow you to understand exactly what results you need to achieve when developing and implementing the chosen strategy. In the description you need to specify the following information(example):

View entrepreneurial activity : business-level beauty salon.
Categories of services provided: nail service, epilation, SPA, hairdressing, massage, make-up, solarium, tattoo, eyelash extension service.
Working mode: from 10:00 to 21:00.
Registration form: IP on UTII plus USN 6%.

When presenting a business plan to potential investors or for obtaining a loan, this part also indicates the amount of investment required, which is calculated during the preparation of the plan.

Market and competition analysis

When planning to open a beauty salon from scratch, it is important to establish who your potential client is and what is the level of competition (direct and indirect) in the current market (in your region of activity, business zone). This will allow you to competently draw up a list of services, as well as plan a marketing strategy.

Description of the target audience

Depending on the class of the salon, the target audience can be formed from clients who choose the master exclusively by qualitative assessment, and in-line, giving preference to the nearest institution. Following the example, for the business class, the percentage of these categories of visitors is approximately equal, and therefore the most the best place Locations for such a salon are large residential areas in the central areas of the city.

The flow of clients of such a business zone, taking into account the class of the salon, is represented by women from 25 to 40 years old with an average income of $300-400. Most of them are medium and higher education, regular work and family. Such a target audience is committed to traditions (going to the salon is part of the lifestyle), is influenced by fashion and is interested in receiving quality services at a relatively affordable cost.

Competition market research

Beauty salons provide a wide range of services, and therefore, when conducting an analysis, competitors are divided into several groups:

Direct- beauty salons with similar list services operating in your business area and price category.
Indirect- institutions that provide services partially similar to yours (hairdressers, separate massage rooms, nail salons, private masters).
Potential- salons of other price categories, areas, as well as establishments planned for opening.

Each group of competitors is analyzed according to pricing policy, the general level of service, as well as the list of services provided. Based on the data obtained, strong and weak sides, which is determined possible benefits you can use in your business:

Competitive price- knowing the cost of services in other salons, you can determine how much your customers are potentially willing to spend and whether it is possible to reduce (increase) the price, taking into account the cost of the service.
The new ones are safer and effective types services- after analyzing what services exist on the market, you can offer customers more modern analogues.
Expanded range of cosmetics and techniques.
Convenient work schedule- By expanding the hours of reception, as well as working on weekends, your beauty salon increases the level of service for customers, which makes it more popular.
Various payment options- most salons work only with cash payment, which is not always convenient for the client. By providing the possibility of non-cash payment by cards, online prepayment of services, purchase of subscriptions or gift certificates, you will significantly stand out from the competition.

Production plan

When drawing up a business plan for opening a beauty salon, special attention should be paid to the description and calculations production process. This part is a kind of instruction for organizing work.

Detailed list of services and basic cost

The list of services that you will provide determines the layout of the premises, the list necessary equipment, number and qualifications of staff. According to the example, a business class lounge can provide the following list of services:

Hairdressing services:

Laying - $ 5;
Men's haircut - $ 4;
Women's haircut - $ 9;
Painting - $20;
Hair extension - $50.

Manicure:

Extension - $15;
Edged manicure - $10;
Coverage - $8;
Painting - $ 9;
Correction - $10;
Pedicure - $30.

Massage:

Classic - $10;
Anti-cellulite - $ 12;
Yoga - $8.

Visage:

Daytime make-up - $8;
Evening make-up - $11;
Bridal makeup - $13.

Epilation:

Laser - from $15;
Shugaring - from $10.

Seaweed wrap - $25;
Mud wrapping - $20;
Salt peeling - $25.

Other procedures:

Solarium - $3;
Tattoo - $40;
Eyelash extensions - $16.

Based on the popularity of the service and the expected flow of customers for your region, the number of jobs for each type of service is determined. As a rule, for major cities the following ratio is chosen:

3 hairdressing chairs;
2 places for nail service (general room for manicure and pedicure);
1 place make-up artist;
1 massage room;
1 solarium;
1 place SPA procedures;
1 common place for eyelash extensions and tattoos.

Required equipment and supplies

Knowing the full list of services, you can make a list of the necessary equipment and consumables. A calculated sample beauty salon business plan involves the purchase of the following equipment:

Hairdressing services:

Armchair for a client - $100;
Cabinet with a mirror - $70;
Hairdryer - $35;
Curling iron with nozzles - $30;
Iron - $ 45;
Clipper - $25;
Wash - $60;
A set of haircut tools (scissors, combs, clips, etc.) - $50;
Cosmetics for styling and coloring, protective collars, foil for painting - $ 1000 (per month);
Trays for breeding paint, brushes, aprons and gloves - $50.

Manicure:

Table for manicure - $20;
Hand rest - $4;
Lamp for drying varnishes - $ 15;
Pedicure chair - $100;
Cabinet for varnishes - $ 50;
Apparatus for mechanical manicure - $50;
Hand tools (scissors, saws, polishers, tongs) - $50;
Table lamp - $60;
Chair for the master - $70;
Chair for a client - $70;
Foot and hand baths - $4;
Instrument sterilizer - $25;
Extension kits, varnishes, solvents - $500.

Massage:

Massage table - $150;
Trolley for cosmetics - $50;
Massage chair - $70;
Massage oils - $600
Wash - $60.

Visage:

Dressing room mirror - $70;
Armchair for a client - $100;
Ring lamp - $150;
Table for cosmetics - $50;
A set of brushes - $15;
Palettes for contouring, sets of lipsticks, shadows, tonal foundation - $ 700.

Epilation:

Couch for a client - $150;
Sugar paste heater - $100;
Magnifier lamp - $60;
Table for cosmetics and tools - $50;
Laser hair removal device - $ 5000;
Sugar paste and cosmetic care products - $ 800;
Wash - $60.

Wrap table - $150;
Thermal mittens - $ 13;
Cosmetics for SPA procedures - $700;
Gloves, baths, wrapping film - $ 300;
Shower cabin - $200.

Other procedures:

Solarium - $5500;
Replacement lamps - $1000;
Permanent tattoo machine - $200;
A couch with a headrest for eyelash extensions - $150;
Diode lamp on a tripod - $ 100;
Eyelash extension kits, as well as tattoo inks and painkillers - $1000.

Furniture and additional equipment:

Administrator's place (rack, chair, PC, phone) - $500;
Waiting area for clients (sofa, table) - $300;
Utility rooms (refrigerators for cosmetics, shelving, wardrobes for employees, a table and chairs for relaxing) - $ 500;
A flowing water heater, air conditioning, an audio system for relaxation during massage and SPA procedures - $ 600.

It also takes into account the cost household chemicals, disposable tools and materials (towels, slippers, hats, peignoirs), stationery - $ 600 per month.

When writing this article, we tried to develop a detailed business plan for a beauty salon, describe the main organizational features this type of business, calculate the financial model and analyze the effectiveness of this project in accordance with international standards business planning (UNIDO).

The article consists of eight sections, each of which provides answers to the most frequently asked questions and helps potential owners understand all aspects of the salon business in more detail. We hope this information will be useful to you.

Project idea

The idea of the project is to open a beauty salon. In order to implement it, we will need to develop a concept for the future institution, decide on the premises, draw up all the necessary documentation, make repairs, purchase and install equipment, draw up a marketing action plan and hire staff. In addition, you will also need to calculate the main economic indicators and on their basis to evaluate the potential efficiency and possible risks associated with the implementation of the project.

Let's start with some background information:

A densely populated residential area in a city with a population of 500,000 or more was chosen as the proposed location;
Salon area - 108 sq. meters (the premises are in long-term lease);
Working hours: daily from 9.00 to 21.00;
Planning horizon (time period during which the effectiveness of this business plan will be assessed) - 5 years;
Discount rate - 14%;
Organizational and legal form - Individual entrepreneur;
Taxation system - Simplified (15% income minus expenses);
The staff of the institution - 15 people;
Estimated volume of investments - 4.2 million rubles;
The source of investment is the owners' own funds.

It is assumed that the beauty salon will provide a wide range of services in all major areas of the beauty industry:

Hairdressing services;
Hair coloring services;
Hair curling and styling;
Mani Pedi;
Cosmetology services;
Facial care;
Solarium;
Massage and etc.

Also, all customers will be able, if desired, to purchase all kinds of cosmetic products for personal care.

Project concept

The beauty salon project will focus on middle-income visitors, who should make up the bulk of the population of the city area chosen for placement. As a rule, most of the potential customers of such establishments are people living within walking distance.

As a key criterion for the location, the maximum proximity to potential customers was chosen. The establishment to be opened will be located on the first floor of a residential building near the central boulevard of a densely populated area of the city. When choosing a place, you should pay attention to such criteria as:

Proximity to transport infrastructure (the presence of nearby metro stations, railway stations and busy stops is an indisputable advantage);
The proximity of the pedestrian arteries of the city (central streets, boulevards and alleys);
The presence of dense residential development in the area;
Availability of convenient access roads and parking places where you can leave your car;
Development of adjacent infrastructure ( shopping centers, shops and restaurants).

Structure of space use

To provide the declared list of services in a beauty salon, you will need to place:

Hairdresser's room - 25 sq.m.;
Manicure and pedicure room - 12 sq.m.;
Beautician's office - 18 sq.m.;
Solarium - 5 sq.m.;
Massage room - 12 sq.m.

Also part of the area will be occupied by utility and administrative premises:

Reception area - 16 sq.m.;
Staff lounge - 8 sq.m.;
Utility rooms - 12 sq.m.

The total area, taking into account all the premises, will be 108 square meters. m.

Table 1. Structure of space use

The name of a room	Area, sq.m.
Total:	108
hair salon	25
Beautician's office	18
Manicure and pedicure room	12
Massage room	12
Solarium	5
Reception area	16
Staff lounge	8
Utility rooms	12

The beauty salon will be open daily from 9.00 to 21.00, which should help increase the number of potential customers.

The average check for the services provided will vary depending on the direction:

Hairdressing services - 900 rubles;
Cosmetology services - 1500 rubles;
Massage - 1600 rubles;
Manicure, pedicure - 900 rubles;
Solarium - 25 rubles;
Sale of cosmetics - 1100 rubles.

To start activities, it will be necessary to register with the tax authority of the entity in which the opening is planned. The best option legal form of a beauty salon is the use of status individual entrepreneur using a simplified taxation system (15% income minus expenses). In addition to registration legal entity you will need to go through several steps, such as:

Pass the compliance of the premises with the rules fire safety;
Obtain an expert opinion from the sanitary and epidemiological service;
Register with Rostekhnadzor;
Obtain a GOST-R certificate of conformity.

organizational plan

The staff of the future beauty salon will consist of two categories: administrative and production.

Administrative staff are people necessary for the normal functioning of the salon and maintaining its activities. It will include:

Administrators;
Accountant;
Cleaning woman.

The production staff are directly the masters and stylists who will provide services. Compound production staff:

Stylists;
Cosmetologists;
Specialists in manicure and pedicure;
Masseurs.

Administrators working on schedule 2/2 will receive 30,000 rubles a month. Accountant responsible for maintaining accounting records and timely submission of accounting and tax reporting- 20 thousand rubles a month. Cleaning lady - 18 thousand rubles a month. The remaining employees will receive a percentage of the services they provide:

Hairdresser-stylist - 40%;
Cosmetologist - 40%;
Manicure and pedicure specialist - 40%;
Masseur - 35%.

Table 2. Personnel

Name	Quantity	Salary, thousand rubles	Total, thousand rubles
Total:	15
Administrator	2	30	60
Accountant	1	20	20
Cleaning woman	1	18	18
hair stylist	5
Cosmetologist	2	40% of the cost of the service rendered
Manicure Specialist	2	40% of the cost of the service rendered
massage specialist	2	35% of the cost of the service rendered

The wages of hairdressers-stylists will account for 39% of the wage fund. The share of cosmetologists in the payroll is 15%. Another 14% will go to the salaries of massage therapists. The share of specialists in manicure and pedicure is 13%. Administrator salaries will require 12% of total costs. Accountant - 4%. And the remaining 3% will go to pay the cleaning lady.

One of highlights is to purchase all the necessary equipment. To organize the full-fledged work of a beauty salon, you will need equipment of the following categories:

Hairdressing room equipment;
Cosmetology cabinet equipment;
Manicure and pedicure room equipment;
Massage room equipment;
Solarium.

The hairdressing salon will be equipped with three mirrors, three hydraulic chairs, one child seat, two hairdresser's sinks, three tool carts, two dryers, one climazon, a hairdresser's vacuum cleaner and an air sterilizer. The total cost is 353 thousand rubles.

Table 3. Hairdressing room equipment

Name	Quantity, pcs.	Cost, thousand rubles	Total, thousand rubles
Total	17	-	353
Hydraulic barber chair	3	16	48
Hairdressing chair for children	1	10	10
hairdressing wash	2	19	38
Tool trolley	3	3	9
hairdressing mirror	3	7	21
Sushuar	2	13	26
climazon	1	60	60
Hairdressing vacuum cleaner	1	16	16
Air sterilizer	1	5	5
Other equipment	-	120	120

For organization beauty parlor you will need a beauty chair, trolley, chair, magnifying lamp, towel warmer, screen and sterilizer. It will also be necessary to purchase the following hardware cosmetology equipment:

Apparatus for ultrasonic peeling;
Apparatus for myostimulation;
Apparatus for electrolysis;
Device for microdermabrasion;
Apparatus for vacuum therapy.

The total cost of equipment for a beauty parlor will be 393 thousand rubles.

Table 4. Beauty parlor equipment

Name	Quantity, pcs.	Cost, thousand rubles	Total, thousand rubles
Total	12	-	393
Cosmetology chair	1	70	70
Cosmetic trolley	1	8	8
Ultrasonic peeling machine	1	27	27
Apparatus for myostimulation	1	45	45
Apparatus for electrolysis	1	55	55
Device for microdermabrasion	1	43	43
Device for vacuum therapy	1	41	41
Beautician chair	1	8	8
Magnifier Lamp	1	12	12
Towel warmer	1	14	14
Screen	1	5	5
Sterilizer	1	5	5
Other equipment	-	60	60

The equipment for the manicure and pedicure room will include a manicure table, a chair, a manicure apparatus, an extractor hood, an ultraviolet lamp, a manicure lamp, a pedicure apparatus, a pedicure chair, a trolley, a bathtub and a vacuum cleaner. Their total cost will be 233 thousand rubles.

Table 5. Equipment for a manicure and pedicure room

Name	Quantity, pcs.	Cost, thousand rubles	Total, thousand rubles
Total	12	-	233
Apparatus for manicure	1	15	15
Hood for manicure table	1	5	5
UV lamp	1	3	3
Manicure table	1	8	8
Armchair	1	14	14
Lamp for manicure	1	7	7
Apparatus for pedicure	1	77	77
Pedicure chair	1	19	19
Ring magnifying lamp	1	9	9
Pedicure trolley	1	17	17
pedicure bath	1	6	6
Pedicure vacuum cleaner	1	8	8
Other equipment	-	45	45

To provide massage services, you will need to purchase a couch, a screen and a table for tools and cosmetics with a total cost of 62 thousand rubles.

Table 6. Massage room equipment

Name	Quantity, pcs.	Cost, thousand rubles	Total, thousand rubles
Total	3	-	62
massage couch	1	18	18
Screen	1	6	6
Table for tools and cosmetics	1	8	8
Other equipment	-	30	30

A vertical solarium worth 350,000 rubles will also be installed.

In addition to the above, it will be necessary to equip a reception area and a lounge for staff. The cost of equipping these two zones will amount to 149 thousand and 38 thousand rubles, respectively.

Table 7. Reception area equipment

Name	Quantity, pcs.	Cost, thousand rubles	Total, thousand rubles
Total	11	-	149
reception desk	1	19	19
Administrator chair	1	6	6
Cash machine	1	15	15
Coffee table	1	11	11
Sofa	1	15	15
Armchair	2	6	12
Wardrobe	1	14	14
Showcase for the sale of cosmetics	2	7	14
TV	1	23	23
Other equipment	-	20	20

Table 8. Equipment of the rest room

Name	Quantity, pcs.	Cost, thousand rubles	Total, thousand rubles
Total	5	-	38
Sofa	1	14	14
Armchair	2	4	8
Table	1	8	8
Cooler	1	8	8
Other equipment	-	10	10

Below is a general breakdown of equipment costs.

The equipment of the cosmetology office accounts for 25% of general expenses. The share of the hairdressing salon is 22%. Manicure and pedicure room - 15%. Massage room - 4% of all expenses. Solarium - 22%. Reception area and lounge equipment - 10% and 2% respectively.

Marketing plan

The key elements of a beauty salon marketing plan will be the pricing policy of the establishment and advertising strategy promotion.

The success and profitability of a business depends on the right pricing policy. When determining the prices for the services provided, first of all, you should pay attention to the following factors:

The market price established in the proposed location area (prices of competitors for similar services);
Costs arising from the provision of a particular service (it is also necessary to calculate the profitability of the services provided).

When forming a pricing policy, you can resort to one of the following strategies:

Set a price below the market. Many of the newly opened beauty salons resort to this strategy. Most clients of beauty industry enterprises are quite conservative and reluctant to change their masters, so it will be quite difficult to lure such a client into a newly opened establishment. Price is one of those factors that can affect the client's accepted opinion about changing salons.
Set a price above the market. This pricing strategy should be used by beauty salons focused on luxury clients. For such people, the price is not a determining factor, on the contrary, high price will only emphasize the quality and exclusivity of the services provided.
Set a market price. In this case, you need to clearly think over and work out the advantages that will set you apart from your competitors. It is necessary to make a few "chips" that would contribute to the fact that potential customers gave their preference to your salon. As a rule, such "chips" are a customer loyalty program and a wider list of services provided (the use of new methods and practices of the beauty industry).

Do not forget that this type of business is subject to seasonality: both annual (demand for services provided increases in spring and decreases in summer) and weekly (the peak in demand for beauty salons comes precisely on weekends, and decline in the first days of the week). To level out serious load fluctuations, it is necessary to use flexible system pricing, resorting to various discount programs.

Advertising is the main tool in the hands of the owners of a beauty salon, with which they can inform potential customers about the opening and the services provided. In order for the salon to be successful and be able to attract required amount customers need to pay great attention to advertising strategy.

At the initial stage, the most popular ways to promote the salon through advertising are:

These steps should help promote the salon and attract potential customers at the initial stage.

Calendar plan

The schedule for the implementation (opening) of a beauty salon can be divided into the following step-by-step stages:

Selection of premises and conclusion of a lease agreement;
Registration of a legal entity (LLC or individual entrepreneur);
Development of interior design and repair work;
Purchase and installation of all necessary equipment;
Recruitment, website development and advertising campaign.

The first task facing the future owners of a beauty salon is to find a suitable premises. The premises must meet all the necessary criteria. To simplify this stage, you can resort to the help of professional realtors.

After the premises are selected and the lease agreement is concluded, it is necessary to register a legal entity. The most common forms of registration of a legal entity when opening a beauty salon are the Society with limited liability and Sole Proprietor.

In parallel with the registration of a legal entity, it will be necessary to order the development of an interior design and carry out the entire range of necessary repairs.

After the repair is done, it will be necessary to order and install the equipment.

Also, do not forget about the selection of qualified personnel and the implementation of a set of marketing activities, including the development of a website and an advertising campaign.

It is assumed that the implementation of all these actions will take about three months, after which the beauty salon will begin to fully function.

Financial plan

Investment in the project

To implement this project, it will be necessary to invest 4.18 million rubles in it. It is assumed that the personal funds of the owners of the establishment will act as a source of investment.

Table 9. Total investment in the project

Investment article	Volume of investments, thousand rubles
Total:	4180
Registration of a legal entity	20
Receipt permits	90
Premises selection	50
Interior design development	85
Premises renovation	640
Purchase and installation of ventilation and air conditioning systems	320
Site development	45
Recruitment	25
Advertising	220
Purchase of equipment	1578
Delivery and installation of equipment	90
Inventory of cosmetics	200
Working capital until self-sufficiency	817

As can be seen from the table above, the main item with a specific share of 38% of total investments is the purchase of equipment. The delivery and installation of equipment will take another 2% of the total investment. In addition to the equipment in the rented premises, it will be necessary to make repairs (15%) and install ventilation and air conditioning systems for the premises (8%).
Part of the investment will go to maintaining the normal functioning of the beauty salon at the initial stage - 19%. These types of costs include the rental of premises in the first 4 months, staff salaries in the first month of work, payment of utilities and other services. The remaining 18% will be required for: registration and obtaining permits, selection of premises, development of a design project, development of a website, recruitment, advertising and purchase inventory cosmetics.

Income

It is assumed that the first quarter will be completely spent on resolving all organizational issues related to the opening, and the beauty salon will begin to fully function from the second quarter. The occupancy of the institution in the second quarter will be 29%. After that, the load will continue to increase until it reaches the design capacity (the design capacity is planned to be reached in 1.5 years from the start of the project).

The revenue part will be formed through the sale of services divided into the following groups:

hairdressers;
Cosmetic;
Mani Pedi;
Massage;
Solarium;
Sale of cosmetics.

The services provided by the salon are described in more detail in the table below.

Table 10. Price list

Income item	Average cost, rub.
hairdressing services
Women's haircut	900
Men's haircut	600
Children's haircut	400
Hair coloring	1100
Hair highlights	1100
Hair toning	1000
Laying	900
straightening	1000
Perm	1200
Cosmetology
Visage	1500
Face cleaning	1300
Depilation	900
piercing	1700
tattoo	4000
Peeling	1900
Facial care	2000
Mani Pedi
Manicure	600
Nail modeling	1200
Nail strengthening	1000
Nail polishing	100
Nail polish removal	50
Lacquering	100
Pedicure	1200
Modeling of toenails	1200
Nail extension	1700
Massage
Classic massage	1200
Acupressure	1600
Anticellulite massage	1800
chocolate wrap	2000
White clay wrap	2000
Solarium
One minute	25
Subscription for 60 minutes	1200
Other
Sale of cosmetics	1100

On average, the cost of hairdressing services will be 900 rubles, cosmetic services - 1500 rubles, manicure, pedicure - 900 rubles, massage 1600 rubles, solarium - 25 rubles per minute, and average check for cosmetics sold - 1100 rubles.

The bulk of income (39%) will be generated from the provision of hairdressing services. Cosmetology will bring 17% of total income. Massage and manicure parlors will generate 14% of revenue each. Solarium - 3%. And the sale of cosmetics will bring an additional 13% of total revenue.

Expenses

All costs can be divided into two groups:

fixed costs;
variable costs.

TO fixed costs beauty salon include:

TO variable costs can be attributed:

Wage hairdressers-stylists (40% of the cost of services rendered), cosmetologists (40% of the cost of services rendered), as well as manicure specialists (40% of the cost of services rendered) and massage therapists (35% of the cost of services rendered);
General business expenses - 2% of revenue;
Purchase costs necessary materials– from 5% to 25% of the cost of each specific service;
The markup on cosmetic products sold is 100% of the purchase price.

The cost of 46% will consist of labor costs, 23% of the cost of renting premises, as well as payment utilities, phone and internet, by 19% from the cost of purchasing the necessary materials, by 5% from depreciation, 3% from business expenses and 2% from taxes.

Taxation system

The financial model is based on the assumption that a simplified system with a rate of 15% (income minus expenses) will be used as a taxation system.

Break even

The break-even point is reached with a revenue of 2.2 million rubles per quarter (which is equal to 34% load). At 34% load, the revenue from the services provided begins to exceed the total costs (fixed and variable) and the project enters a positive cash flow from operating activities.

Revenue and net profit

The graph below shows the dynamics of revenue for 5 years.

As can be seen from the above graph, the beauty salon will begin to fully function only from the second quarter. By gradually increasing the volume of revenue, by the 8th quarter it is planned to reach the maximum load level, after which the revenue indicator will depend on changes in seasonal factors.

The graph below shows the dynamics net profit for 5 years.

The beauty salon will be unprofitable for the first three quarters. The first quarterly profit of the institution is planned for the fourth quarter. After that, the profit indicator will vary from 300 to 800 thousand per quarter, depending on the seasonal demand for the services provided.

Project efficiency analysis

To analyze the effectiveness of the project, it will be necessary to calculate the following indicators:

Net cash flow (Net cash flow);
Clean discounted income(Net present value);
Payback period (Pay-Back Period);
Discounted payback period (Discounted Pay-Back Period);
Profitability Index;
Internal rate of return (Internal rate of return).

Net cash flow (NCF) is the difference between the positive and negative cash flows from the project.

This indicator is calculated for a certain period of time (in our case, the planning horizon is 5 years).

Also, this indicator can be characterized as the sum Money, remaining after meeting all the cash needs of the investment project (net cash flow reflects the amount of cash that can be distributed among the owners of the company, while not threatening its future activities).

Net cash flow is the sum of cash flows from investing, operating and financial activities organizations.

The higher the value of net cash flow, the more attractive the project in the eyes of potential investors.

As can be seen from the above graph, the net cash flow (NCF) after 5 years will amount to 10983 thousand rubles.

Net present value (NPV) is the discounted (adjusted to a specific point in time) difference between all cash inflows and cash outflows.

NPV shows the value of income reduced to the current moment in time, which the investor expects to receive after the cash inflows, reduced by the amount of cash outflows, pay off the initial investment in the project.

If the net present value is greater than zero, then the investment is economically justified, and if NPV less than zero then invest in this project unprofitable.

With the help of net present value, it is convenient to evaluate the effectiveness of alternative investment projects (with the same initial investment, a project with a large NPV is preferable).

As can be seen from the above graph, the net present value (NPV) after 5 years will be 6026 thousand rubles.

Payback period (PBP) is the period of time required for the income generated by the project to cover the investment costs incurred at the beginning of the project.

The payback period is determined by the point in time at which the net cash flow (NCF) becomes (and remains) non-negative.

Main disadvantage this indicator is that it does not take into account the receipt of funds after the moment of reimbursement of the initial expenses incurred.

Payback period (PBP) of the project is 2.19 years.

Discounted payback period (DPBP) is the period of time required for the income generated by the project to cover the investment costs incurred at the beginning of the project, taking into account discounting.

The discounted payback period is defined as the point in time at which the net present value (NPV) becomes (and remains) non-negative.

Discounted payback period (DPBP) in our case is 2.45 years.

Profitability Index (PI) is the ratio of discounted cash flows from the implementation of an investment project to the discounted amount of investment investments.

Profitability index (PI) is 2.93.

The internal rate of return (IRR) is interest rate, at which the net present value (NPV) is zero. The internal rate of return is used to calculate the alternative investment rate.

Project Internal Rate of Return (IRR)63,5 %.

A summary list of performance indicator values is presented in the following table:

Table 11. Project performance indicators

Performance indicator	Meaning
Net Cash Flow (NCF)	10983 thousand rubles
Net present value (NPV)	6026 thousand rubles
Payback period (PBP)	2.19 years
Discounted payback period (DPBP)	2.45 years
Profitability Index (PI)	2.93
Internal rate of return (IRR)	63,5%

Risk Analysis

Every investment project subject to a certain set of internal and external risks. Their implementation can negatively affect the profitability of the project, and sometimes even lead to its closure. In order not to become a hostage of such a situation, we will consider the most likely risks associated with the activities of a beauty salon, and also give several effective ways to deal with them.

The risk of loss of competitiveness due to increased activity of competitors in the fight for customers.

Opening a beauty salon can affect the activation of competitors, which can lead to the loss of some potential customers.

The most productive ways to deal with this type of risk are:

Well-designed marketing plan;
Properly built pricing policy of the institution;
High level services provided;
Clear loyalty program;
The variety and attractiveness of the services provided.

The risk of high turnover (loss / enticement) of personnel and a decrease in the level of services provided.

The professionalism of the staff plays an important role in attracting and retaining new customers. The quality of staff directly affects the level of services provided, and, accordingly, directly affects profitability.

Ways to prevent this risk:

Effective system of personnel motivation;
System for monitoring the level of services provided;
Increasing the loyalty of staff to management and customers to the institution.

The risk of reducing the purchasing power of potential customers.

Usually, this species risks associated with crisis manifestations in the economy. To level such risks, it is necessary to be flexible, both in pricing policy, and to be able to influence the reduction of the main business expense items:

when paying for labor, it is advisable to use the piece-rate method of calculation;
if necessary, be able to switch to another brand of cosmetics used in the salon.

Risk of loss of customer base loyalty.

This type of risk is probably one of the main ones. Since the loyalty of regular customers is a key criterion affecting the success of the salon business. Loyalty is a thing that can be developed over the years, and be lost in one moment. In order for this not to happen, you must:

Continuously maintain quality;
Monitor customer satisfaction with service quality;
Adapt to the tastes and preferences of customers;
React to everything conflict situations arising in the course of the institution's operation.

The risk of technological lag caused by the emergence of new methods and services in the beauty industry.

The beauty industry does not stand still and every year there are more and more new advanced techniques and technologies. In order to keep up with this process, it is necessary to constantly improve and develop, updating the list of services provided. The most effective way not to lose competition in the market of new trends in the beauty industry is to constantly participate in thematic exhibitions and master classes.