Investigating the feasibility of opening a business

... previously, that the main competitor in the nail service, is in Harrow. As Northwood is a significant distance away from Harrow - some 7 miles, the Bar will be opening the door for a whole new range of customers and hopefully develop the custom those living in the area that previously visited the Harrow store.

It is also evident from the survey conducted, that demand for the treatment offered is not consistent throughout the day, everyday. It is therefore not profitable to remain open from 09.00 - 17.00 every day if it would prove beneficial to the business to be open from 12.00 - 21.00 on particular days throughout the week. The feedback compiled suggests that the following opening times should be tried provisionally:

Monday - 09.00 - 12.00 Tuesday - 09.00 - 18.00 Wednesday - 12.00 - 21.00 Thursday - 12.00 - 21.00 Friday - 09.00 - 21.00 Saturday - 09.00 - 18.00 Sunday - Closed

A graph to show what potential demand is for the services offered

A Graph to show what potential clients are willing to pay for specific treatment

A graph to show how many times on average the Women interviewed, visit a Beauty Parlour.

Profit and Loss

This is a forecasted profit and loss that will follow the principle of prudence and understate the forecasted sales, from the estimated 66 of 100 people (see survey) to 20% of the population of women in Northwood spending an average of £20 a week, therefore £240 a year.

FORECASTED PROFIT AND LOSS ACCOUNT FOR THE 'NORTHWOOD NAIL & BEAUTY BAR FOR ONE YEAR

£ £

Sales Revenue 249 840.00

Cost of Goods Sold 3 537.05

Gross Profit 246 302.95

(Expenses) Rent 27 000.00 Maintenance 2 000.00 Insurance 1 000.00 Wages 144 000.00 Rates 14 000.00 Decoration 2 000.00 Opening 200.00 Advertising 10 000.00 Lighting & Heating 5 500.00 Equipment & Furniture 1 854.00 Depreciation 25% 463.50 208 017.50

Net Profit 38 285.45

The following profit and loss calculates an estimated sales turnover, based on 66% of the population of women in Northwood using the service. This is an optimistic view estimating the probable maximum profit that can be achieved.

FORECASTED PROFIT AND LOSS ACCOUNT FOR THE 'NORTHWOOD NAIL & BEAUTY BAR FOR ONE YEAR

£ £

Sales Revenue 824 472.00

Cost of Goods Sold 3 537.05

Gross Profit 820 934.95

(Expenses) Rent 27 000.00 Maintenance 2 000.00 Insurance 1 000.00 Wages 144 000.00 Rates 14 000.00 Decoration 2 000.00 Opening 200.00 Advertising 10 000.00 Lighting & Heating 5 500.00 Equipment & Furniture 1 854.00 Depreciation 25% 463.50 208 017.50

Net Profit 612 917.45

This profit and loss assumes that the sales turnover will be generated by an average of the previous assumptions - 40% of the population of women in Northwood. This takes into account both the optimistic and pessimistic forecasts for profit and loss, and also considers the fact that not all the potential clients are residents in Northwood.

FORECASTED PROFIT AND LOSS ACCOUNT FOR THE 'NORTHWOOD NAIL & BEAUTY BAR FOR ONE YEAR

£ £

Sales Revenue 499 680.00

Cost of Goods Sold 3 537.05

Gross Profit 496 142.95

(Expenses) Rent 27 000.00 Maintenance 2 000.00 Insurance 1 000.00 Wages 144 000.00 Rates 14 000.00 Decoration 2 000.00 Opening 200.00 Advertising 10 000.00 Lighting & Heating 5 500.00 Equipment &a ...