New to this and would like little advise please

[beauty-boutique]

hi im currently in the process of putting my business plan together to take to bank for a small business loan ....

what us best way to work out my :

sales
gross margin
net profit
??????

can anyone help ?

 

[Drpepper]

hi im currently in the process of putting my business plan together to take to bank for a small business loan ....

what us best way to work out my :

sales
gross margin
net profit
??????

can anyone help ?

Take your total sales then deduct the stock cost and you have your gross profit/margin

Now deduct all the other expenses and you have your net profit.

 

[beauty-boutique]

Thank You ...

How can I work this out if salon isnt open as of yet ....

I have a rough guide of what my salon is goin to cost to set up i.e equipment and stock and bills

thank you

 

[Podge]

Market research.
Find the demand for your service in your area then determine what percentage of that market you would realistically expect to be able to capture given your location, prices, services offered etc..

 

[Drpepper]

How can I work this out if salon isnt open as of yet ...

You can work it from the bottom up - take all your costs etc and then work out what sales you need, at what margin, to make a profit.

Then you'll have an idea if it's viable as well.

 

[beauty-boutique]

Thanks guys this had helped alot thank you !

doesnt any 1 no any good business plan websites that also gives advise ?

 

[AndyL]

Thanks guys this had helped alot thank you !

doesnt any 1 no any good business plan websites that also gives advise ?

Try Here ...

 

[beauty-boutique]

Thank you everyone

 

[popunder]

You might try looking at a business sales website for a similar salon for sale in a similar kind of town. There's sometimes some useful headline figures on turnover and profit on the sales ad which might help. If you're cheeky you could express interest and get more details from the agent.

Don't forget though if the salon being sold is a good (rather than dying) business then the figures will be for an established salon and it may take you 3 years to build up to a similar level, or less if you're great at marketing, or more if you aren't or spend nothing on it...

 

[beauty-boutique]

Currently at the min the plot is nothing .... its a brand new building .... But in a FANTASTIC place to open a salon .... what do you mean by the bit were you said if your cheeky ??????????????

 

[beauty-boutique]

oh just i have read it again and understand now lol
blonde moment lol

 

[UniqueOpportunity]

Hi,

I would make sure you cover the following in your plan

Objectives - long/medium/short-term
Proift projections
Competitor analysis - this is a major source of profit erosion
Marketing P's - Price, Promotion, Place, Product (in your case service)
What you are putting in
How you will implement your plan
Cash flow - very very important I would do a cash flow forecast for 5 years to match the P&L and balance sheet

You may want to speak with your accountant for advice because the banks will want to know how you will pay them back and when

You will need to research to estimate the amount of punters you will have at what price and how much this will cost you to deliver in terms of fixed and variable costs.

Hope this helps

Cheers