Beauty Salon Financial Model Excel Template by Henry Sheykin - Financial Models https://finmodelslab.com/ Last version published: 08/05/2019
COVER PAGE
Here you may input a name of the model.
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Time Series Financial year end in the model - input the last month of the financial year. If you don't need to assume for the financial years, simply type in Dec. First Financial Year in the model - input the very first financial year you want to start from financial year. If you have entered Dec in the Financial year end in the model, then, your calendar year equals the financial year.
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Dashboard - Currencies & Denomination
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Input Currency - currency for the assumptions and inputs. Insert your currency sign $/€/¥/£ or type in USD/EUR/GBP or any other abbreviation. Output Currency - currency for the outputs and graphs. Insert your currency sign $/€/¥/£ or type in USD/EUR/GBP or any other abbreviation. Currency exchange rate - enter your up-to-date exchange rate of the currency in which you want to display your financial report. Denomination - use denomination if you want to show outputs in thousands, millions or billions.
Dashboard - salon inputs Here on this tab, you can plan would-be income of your beauty salon, as well as the sales ratio between 5 (five) salon jobs. More to it, you can forecast your overall revenue for the next few years, by changing beauty salon setup options: - Months to plateau - a linear scheme ramp-up time needed to reach the plateau. The months to plateau, in this due, indicate the amount of time needed for the salon to be occupied as assumed. - Working hours per month - How much time per month your salon will be at work? - Occupancy Plateau, % - planned -occupancy Stations - Number of beauty salon stations you plan to have in place. Literally, this is the working places for stylists, beauticians, barbers that will draw profits for you. Another bunch of revenue assumptions are: - Jobs per hour - how many salon jobs can be done on average per 1 hour. - Price per job - How much will you charge your customers for a salon job on average by years?
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Extra Revenue - inputs
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If you want, at this tab you may input the extra product assumptions: the names of extra product - you have up to 5 placeholders launch date - when this particular product should start selling?
sales per month - a self-explanatory assumption
sales growth - each year your sales can grow. For how much? price - a self-explanatory assumption margin - if you sell for $100 with 30% margin, then your margin is $30 and 70 the cost of goods sold
Variable Expenses
Enter in the column Variable Expenses your would-be percentage of various spending from your total revenue. Variable expenses tend to go up and down depending on sales. Thus, variable expenses tab displays 6 placeholders, which is more than enough to calculate restaurant variable expenses. The tab shows you typed-in indexes and expenses based on them. For instance, let’s calculate bank fee, let it be 1%. Put the number in the “variable expenses” cell,
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Fixed Expenses
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On this tab, you can enter forecasted different fixed expenses in order to start running the business. You have multiple options of when to start to accrue the expense and when to end accruing. You may define periodicity of the accrue for each expense. It could be one-time, daily, weekly, bi-weekly, monthly, quarterly and etc.. This gives you the flexibility to manage expenses. Here are 15 spaces for placeholders, i. e. all possible expenses for your future restaurant. Other columns include launch and end date, accrue periodicity and amount of money spent. Flexibility in planning is definitely an asset here! You can find your key expenses on Top Expensive tab.
Wages
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Wages tab contains the placeholder list. A placeholder can be a person, or position, or a group of people. Each row specifies their hire and fire dates, annual salary and Full-Time Equivalent count. Besides, there are also annual salary raise, monthly bonuses, and tax rate. The wages tab easily allows you to calculate the expenses for the salaries of your personnel. Use 1 line per employee/category and simply type in the hire date, fire date, and annual salary. Next use the Number of Employees section to type in FTE count for each year. An increase of FTEs means that you are going to hire additional FTE's. In case of decrease FTEs means you fired some FTEs. New FTEs will be hired/fired on Jan of the relevant year. If there are raises or changes in salaries, simply type in the Annual Salary Raise appropriate figures. The program will automatically recalculate the changes made. Finally, there are Monthly Bonus and Tax Rate columns where you can enter the percentage of respective expenses.
Development Expenses On this tab, you can see a table of beauty salon capital expenses. You have to name categories, choose payment delay, and input the cost. Capital costs or investments are the beauty salon development expenditures (i.e. equipment, furniture etc.) that are to be amortized. Each expense item has a purchase date, payment delay time and amount of money spent. What is payment delay? Imagine that your equipment requires prepayment 3 months beforehand. Then you use the payment delay column to note this information. Now, if you put 0, it means you pay and actually buy the item in the same month. If you put plus 1/2/3, then you create a payment delay. You can find the information about CAPEX expenses in the Income Statement - Amortization line or in the Summary or
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Dashboard - Safety Stock
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Safety stock shows the inventory safety level you should keep. This indicator is applied to all production costs. If one gets 1000$ selling by net costs, we should maintain 1000$ safety stock and buy additional supplies to keep the safety level high. If you enter 20%, the algorithm will calculate how many supplies should be bought. Safety stock level can be seen in the Inventory section in the balance sheet. This way you’re all geared up to business!
Dashboard - Debt
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There are 3 debt lines: either choose one or go for all three. Put the amount of money, select launch date and repayment term, interest rate and debt type. There are two debt types: annuity (paid back in instalments of the same size consisting of a loan repayment portion and an interest portion) and usual (the same amount of money is paid for the debt principal, and the interest goes down every month). In addition, there is also a grant or nonrepayable funding. Usually, it is given by a government department.
Capitalization Table
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Capitalization Table
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CapTable require some manual manipulation to be accurate. The structure enables you to make the necessary modifications. The CapTable takes you through multiple rounds of financings. Showing how issued shares to new investors and cost per share impact the investment income. After each round you will see the ownership, % changes. This is how the dilution works. We offer several funding rounds. In general, this method is for large companies but is also effective for stock corporations. The information to be given: shareholders’ names, investment round close date, and share price. The number of shares is distributed between shareholders. The second funding round is optional for initial and new investors. All the investments influence both cash flow and income statement.
Book Assets
Enter the depreciation (useful) time for assets purchased on CAPEX tab.
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Reports - Dashboard
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Reports - Dashboard Here you can see 4 charts and a table. The left upper chart gives you a yearly revenue breakdown, divided into salon job sales and extra product sales sections. The right upper one shows profitability and EBITDA percent.
your
EBITDA,
yearly
Left lower chart is for cash flow, which includes operating, investing and financing categories. Net Cash Flow is highlighted in green color. Right lower one depicts cumulative cash flow. The only difference from the ordinary cash flow is that it has an accumulative function starting from the first year and ending with the 5th one. The table in the left lower part is called Core Financials. Basically, it summarizes the reports and gives us a profit and loss statement. Last two rows in the table are from
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Reports - Financial Statements Summary
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If you want to know more details about the financial state of your beauty salon or plan, then you should open the Summary tab. Summary presents 3 core reports: - profit and loss- balance sheet- cash flow You can review them in different ways: by each month of each year or check out 5 years altogether in the left
Reports - Financial Charts
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Financial charts allow you to see some key figures, such as Revenue Breakdown for 24 months and 5 years. Then, scroll down and see Operating Cash Flow and Cash Balance sheets. Operating cash flow stands for the cash inflow and outflow, i.e. how much money you get and spend. Cash balance signifies the EBITDA, or Earnings before Interest, Taxes, Depreciation and Amortization, is the overall profitability index before amount of paying all the aforementioned rates (interest, taxes, etc.). money This way, EBIT is your net profitability before paying taxes. accumulated.
Reports - Top Revenue
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Top Revenue is another useful category designed for your needs. As we have only two revenue sections (salon jobs and extra products), the numbers are easy to understand. All the charts give you a thoroughly made analysis. Top Revenue Summary enables you to choose a period to look at, e.g. 2018-2022, and shows the exact revenue numbers for each section. Top Revenue Depth gives you an opportunity to dive deeper into the information concerning every year of your financial model. Another cool feature is Revenue Bridge. You can literally go from the first year to the last year and make out which
Reports - Top Expenses
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Top Expenses also cover the same categories, as in Top Revenue, but they regard your spending and are divided into 4 groups: total salary and wages, placeholder 2, placeholder 3 and tax expenses. Everything else can be found in Other section.
Reports - Break-Even Analysis
Additionally, you can use a break-even analysis feature. What does it mean? Break-even signifies the sales level with zero profitability. So, you get neither losses nor profits. Every dollar above this level makes your project profitable, and every dollar below it creates losses.
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Reports - Operational Reports
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Another tool is called Operational Charts. Here you can check your productivity, that is revenue and operational expenses (OPEX) per working hour. Workforce productivity calculates the same per worker.
Reports - Valuation Valuation tab. Calculate the cost of your company! The first thing that you see is the Cost of Capital. The puzzling numbers, such as risk-free rate, inflation premium and risk premium, are available on public sources, for example, Bloomsburg. Growth after the end of the forecast is your personal prediction for the future of your project. Below, you can see the results of these calculations in free cash flow and discounted cash flow sections.
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Formatting and color scheme Formatting and color scheme will unlock the door of productive function management! Colors show which table cells are open for editing and which are unavailable for the user. Yellow cells are all yours to edit, but the white and grey ones are not. The pages also have a certain color scheme: •
Blue – reports
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Grey – calculations
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Green – instructions (i.e. ‘read me first’)
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White – cover page
Green tabs include Contents, Info, How To and Changelog sections. Contents describe each page and contain a link to it. If you want to go back to the table of contents, click Go to Table of Contents in the left. This way, you can easily navigate the file. Info is the tool general description. Here you can find whom to address in case you have questions. How to is a mini-guide on how to complete your restaurant financial model.
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Thank you very much for your interest in my tools! If you enjoyed using my model, please let people know about your experience! Give 5-star feedback here & share this page across social networks If you have any suggestions or ideas of how to make this model more useful, don't hesitate, just send me a PM - Henry Sheykin