Does anyone have a cashflow forecast template I can use please. I am setting a salon up from scratch and my head has totally gone blank. The salon will have hairdressing stations, nail technician and beauty therapist. Many thanks
There's not really any such thing. There is guidance on the Lloyds Bank website to get you started. When I put in an offer for my salon, my future landlord - The Council, asked me for a business plan as I hadn't got three years trading figures.
I think mine ran to 29 pages...
What you are trying to do is gaze into your crystal ball and guess how much business you will have and then use this to justify your outgoings. You need to base this on research. You need to know what capacity there is in your current area and whether demand outstrips supply. You'll also need to research whether there is a supply of labour to do the work also.
So are several of your competitors at 90%+ capacity and can't book you in for the treatments that you are going to be offering within 7 days? Are there queues in your local nail and brow bar throughout the day? Are all the local salons closed on the same day of the week? Are you offering services not available elsewhere? Is there an unmet need - no black hair stylists in a town with plenty of diversity for instance? Are you sufficiently distinctive and different to attract clientele away from competitors and if yes - what will stop the competition from copying your ideas?
Where are your staff going to come from? Will you have a range of experience so that you can both manage your costs, develop expertise and provide the service level your clients will expect?
You need to analyse your research and show your workings so that you set out a supported argument that you are aiming at providing services for a client base that will come to you in sufficient numbers for the sums to balance. It isn't enough to stand in the street and count the numbers of clients arriving for appointments in your competitors salons, you need to show that there is capacity in the market for your offering.