Financial Models

This is a 10 year startup and operating model for a hair salon / barbershop. Included outputs are a DCF Analysis and monthly / annual pro formas for expected profit/loss of operating activities. There are sensitivities to adjust base assumptions up or down by a defined magnitude as well.

Defining revenue for a hair salon is a bit like any other brick and mortar establishment. The revenue assumptions are split into three main categories with 10 slots for each. The categories include: haircut types, other services i.e. manicure or what have you, and product sales. Each of the 10 slots is configurable based on average expected selling price, month start, and unit sales per month across each of the 10 years. The sensitivity driver allows for the results to show if each of those categories ends up being +/- a defined % from the base inputs. Operating expenses are defined in a fixed cost schedule based on a start month and monthly expense amount. There are also one-time startup costs and future CapEx that can be defined if necessary. On this one, I also put a general catch-all cost schedule that the user can use to define any variable expenses as a direct percentage of revenue. This would mean things like franchise fee and/or credit card fees. After all the assumptions are filled out, the model has an output of a monthly and annual 10-year pro forma that drives down to EBITDA and cash flow as well as displays a DCF Analysis along with some visualizations. The model also displays the month and year that future cash flows will cumulatively equal the initial investment. On the Executive Summary there are a wide range of return metrics, including IRR (internal rate of return), ROI, and net cash returned by the project. Funding sources can be defined as a traditional bank loan and any cumulative negative cash flows are assumed to originate from an equity source.