Starting a beauty supply store takes more than finding a good location and filling the shelves. You need to figure out which products customers will buy, how much stock to keep, and what you can afford to spend.
Buy too much, and your money sits on the shelves. Buy too little, and customers may leave without what they came for.
It’s a tricky balance. And if you’re applying for a loan, you need to explain how those decisions affect your expenses, sales, and ability to repay it.
That’s what this sample plan for Crownwell Beauty Supply, a fictional store opening in East Oak Cliff, Dallas, Texas, shows. You can use this example as a reference when writing your own beauty supply store business plan.
Executive Summary
Crownwell Beauty Supply is a new neighborhood beauty supply store in East Oak Cliff, Dallas, opening on Saturday, May 1, 2027. The 2,000 sq ft store sits at Kiestbrook Plaza, 3420 South Lancaster Road, Suite 104, Dallas, TX 75203.
Its shelves will hold about 6,550 products from established brands, from shampoo and edge control to braiding hair and wigs. Crownwell makes nothing itself and offers no salon services.
Owner Kiara Whitfield grew up in Oak Cliff and has worked in beauty retail for nine years. For the last four, she managed a beauty supply store for a regional chain.
Her vision is to make Crownwell the store in East Oak Cliff where the color, length, or wig you came for is always on the shelf.
East Oak Cliff Shoppers
East Oak Cliff is home to 65,956 people, 47.3% Black and 48.6% Hispanic. This mix shapes the shelves. Braiding hair, wigs, and textured hair care will get the most space, next to the hair color and skincare brands Hispanic families ask for.
Crownwell will serve three groups: neighborhood women and girls who wear braids, wigs, and natural styles; Hispanic women and families; and home-based braiders and stylists.
The store will keep everyday hair care priced close to big-box stores and earn its margin on hair, wigs, and accessories.
SBA Loan Request
We are seeking a $180,000 SBA 7(a) loan from Brennford Bank, with a proposed 10-year term and 9.75% interest rate. Kiara will contribute $55,000 of her savings, bringing total startup funding to $235,000.
Here is the funding allocation:
| Use of Funds | Amount |
|---|---|
| Opening stock | $85,000 |
| Build-out, fixtures, security, and signage | $79,000 |
| Cash reserve for restocking | $42,483 |
| Launch costs and fees | $19,550 |
| Prepaid rent and insurance | $8,967 |
| Total | $235,000 |
Sales Outlook
Crownwell expects about 66 sales a day in Year 1, at an average sale of $27.00. Based on the sales forecast, revenue grows from $648,000 in Year 1 to $784,080 in Year 3.
After a first-year loss of $9,420, which includes one-time launch costs, the store expects profits of $18,947 in Year 2 and $29,036 in Year 3.
The forecast also shows: month-end cash never drops below $31,840, even in the first summer. And the store breaks even at about 55 sales a day. In Year 2, the store’s earnings cover its loan payments 1.61 times.
Business Overview
Crownwell Beauty Supply will bring a well-stocked, friendly beauty supply store to the corner of Kiest Boulevard and South Lancaster Road.
Its mission is to keep the hair care products, braiding hair, and wigs local shoppers need readily available at fair prices, with customer service in English and Spanish.
Store Location and Lease
Crownwell leases a 2,000 sq ft end-cap unit at Kiestbrook Plaza, a neighborhood strip center at Kiest Boulevard and South Lancaster Road. A laundromat, a tax office, and a takeout restaurant share its front parking lot, and they bring neighbors past the door every day.
The end-cap space also gives Crownwell room for prominent window displays and an easy-to-find entrance.
The DART Blue Line’s Kiest Station is about a five-minute walk away. This makes the store easy to reach for shoppers without a car.
Of the 2,000 sq ft, approximately 1,700 sq ft is sales floor. The rest holds the stockroom, an office, and a restroom.
The lease runs seven years, with one five-year renewal option. Rent is $25 per sq ft per year, including taxes, insurance, and common-area charges. The landlord gives Crownwell three months to finish the build-out before rent starts.
The map below shows where the store sits:
Ownership & Business Structure
Crownwell is owned by Kiara Whitfield, who has nine years of experience in beauty retail. She started as a sales associate at an independent store in South Dallas, then spent six years with a regional beauty supply chain.
For her last four years there, she managed a 3,000 sq ft store in Mesquite. She placed weekly orders for about 6,000 products across five distributors, set reorder levels, ran stock counts, and trained staff on wig fitting and braiding hair colors. This experience will help her manage Crownwell’s inventory and day-to-day operations.
Crownwell is Kiara’s first business, and she is putting $55,000 of her savings into it. She formed Crownwell Beauty Supply LLC in November 2026 as a single-member Texas limited liability company (LLC). The LLC signs the lease and the loan, which keeps business debts separate from her personal assets.
The store will sell sealed retail products only. Salon services, a private label, and an online store each need more space, staff, or stock. Kiara will consider them only after sales are steady.
Business Goals
Kiara has set three goals for Crownwell’s first three years. She will review progress with her assistant manager each month.
| Goal | Target | By When |
|---|---|---|
| Keep bestsellers available | Maintain at least 95% availability for the top 300 products, with weekly stock checks | From opening |
| Build a loyal customer base | 1,200 loyalty members and 150 braiders and stylists on trade pricing | April 2028 |
| Grow daily sales | About 80 sales a day | Year 3 |
Products & Pricing
The store’s shelves are organized into five categories. Every product comes from an established brand, bought through wholesale distributors and hair companies.
Product Categories
Crownwell organizes its shelves into five main categories.
1. Hair Care & Styling
This is Crownwell’s most frequently purchased category, with about 1,400 products from 60 brands, including Cantu, Mielle, and SheaMoisture.
Shoppers can find shampoos, conditioners, leave-ins, edge controls, gels, oils, relaxers, hair colors, and kids’ detanglers. Products are grouped by need, so customers can easily find what they’re looking for.
Price range: $4.99–$18.99
2. Braiding Hair, Crochet Hair & Extensions
This section serves local braiders and customers who braid their own hair. Crownwell carries pre-stretched braiding hair in about 40 colors, along with crochet hair, human-hair bundles, ponytails, and clip-ins.
Brands include Outre, Sensationnel, Bobbi Boss, and FreeTress. The store keeps extra cases of popular colors so customers can buy several matching packs when needed.
Prices:
- Braiding hair: $4.99–$12.99 per pack
- Hair bundles: $29.99–$129.99
3. Wigs
Crownwell has a 120-head wig display and stocks about 450 styles and colors. Shoppers can choose from synthetic wigs, HD lace-front wigs, and human-hair blends.
A private try-on area lets customers check how selected wigs look and fit before buying. Staff will also help them understand different styles, cap sizes, and lace types.
Price range: $29.99–$189.99
4. Cosmetics, Skincare & Nails
This section carries about 1,300 products, including foundations, concealers, lip colors, Kiss lashes, cleansers, moisturizers, nail polish, and press-on nails.
Crownwell will stock makeup shades for medium and deeper skin tones. Many of these products are smaller purchases customers can pick up while shopping for hair care.
Price range: $3.99–$29.99
5. Tools & Accessories
This section has everyday items such as bonnets, satin scarves, wig caps, edge brushes, combs, rollers, and travel-size products.
It also carries flat irons and blow dryers, with the more expensive tools kept in locked display cases.
Price range: $1.99–$89.99
Pro Card Program for Braiders & Stylists
Braiders and freelance stylists who buy for their clients can join the Pro Card program for free. They sign up by showing a business card, a booking page, or photos of their work.
Pro Card members get:
- 10% off braiding hair, crochet hair, and styling products
- About 15% off a full case of braiding hair
- Special orders held for pickup
- A first look at new colors
These regular orders keep the most-asked colors selling. Braiders also send their clients to Crownwell for everything else they need.
Pricing Strategy
Shoppers compare a few everyday items closely, such as shampoo, edge control, gel, and bonnets. Crownwell prices about 150 of these staples within a few cents of nearby big-box stores, and Kiara checks those prices every month.
Crownwell prices hair, wigs, and accessories at close to double their wholesale cost, in line with other beauty supply stores nearby. In these categories, shoppers care more about finding the right color, length, and style than about saving a dollar.
This balance matters because the categories earn very different margins. Hair care keeps about a third of its price after the wholesale cost, while wigs, braiding hair, and tools keep about half.
Prices stay the same in busy seasons. Regulars never have to worry about a surprise markup in August or December.
Market Analysis
Crownwell’s market is in the neighborhoods around Kiest Boulevard and South Lancaster Road. East Oak Cliff has 21,218 households, with a median household income of $34,360 and a median age of 34.6.
This means many shoppers are young families watching every dollar. Crownwell will price everyday staples close to big-box stores and stock value packs and smaller sizes.
Physical beauty stores remain an important shopping channel. According to NielsenIQ’s 2025 Hispanic Beauty Consumer Report, 51% of Hispanic beauty spending takes place in physical stores.
In-store spending among Hispanic consumers also grew 2.8% year over year, compared with a 0.1% decline among non-Hispanic consumers. The chart below shows how beauty spending growth compares across in-store and online channels:
This is why Crownwell will label its shelves in English and Spanish, so families can shop easily in either language.
Local braiders and stylists are another important customer group. From her years in beauty retail, Kiara knows that some buy braiding hair and other supplies several times a week. Crownwell plans to attract these customers through trade pricing and reliable stock of popular colors and lengths.
Most importantly, Crownwell needs about 2,000 sales a month in Year 1. The store plans to reach this target through repeat neighborhood customers, local braiders and stylists, and shoppers visiting Kiestbrook Plaza.
Kiara will track actual sales each month and adjust inventory and marketing if demand falls short.
Target Customers
Crownwell serves three main customer groups in East Oak Cliff. Each buys different products, so the store will plan its stock and pricing around their needs.
Braiding Hair, Wig & Textured Hair Shoppers
These are Crownwell’s main customers. They buy braiding hair, wigs, edge control, bonnets, and other hair care products.
They look for fair prices, popular colors and styles, and help finding the right products. Some visit every few weeks to change their hairstyle, while others shop for everyday hair care.
Hispanic Women & Families
These customers buy shampoo, conditioner, hair color, skincare, makeup, and nail products for themselves and their families.
They want a nearby store with affordable prices and familiar brands. Crownwell will offer different product sizes and customer service in English and Spanish.
Local Braiders & Freelance Stylists
These customers buy braiding hair, crochet hair, gels, and other supplies for their clients. They often need several packs of the same color and length.
Running out of a product can delay their appointments. Crownwell will keep popular items well stocked and offer special pricing for professional buyers.
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Recent Trends
A few changes in how neighborhood shoppers buy hair products shape Crownwell’s plans:
- Many women now move between braids, wigs, and natural styles throughout the year. Crownwell carries all three in depth, so one store covers every change.
- Shoppers see new wig styles and braid colors on TikTok and Instagram before they shop. The store posts what’s on its wall each week, so they know it’s in stock before they make the trip.
- Lace-front wigs have become everyday wear, not just pieces for special occasions. Staff learn to cut and fit lace, so first-time buyers leave confident.
Buying Seasons
Sales in a beauty supply store follow school calendars and holidays. August brings back-to-school braids, December brings holiday styles, and spring brings Easter, prom, and graduation. January and February are the quiet months.
In Year 1, August and December together bring in 21% of Crownwell’s sales. Saturdays are about twice as busy as weekdays.
These patterns shape how Kiara runs the store. She orders extra braiding hair in July and extra wigs in November, adds associate hours on Saturdays and in the peak months, and keeps cash aside for January and February.
Competition
Shoppers in East Oak Cliff already have places to buy hair and beauty products. Crownwell’s direct competitors are the other stores selling beauty supplies nearby. Its indirect competitors are the other ways shoppers get the same products.
Direct Competitors
- Independent beauty supply stores in South Dallas
These are Crownwell’s strongest competitors. Several have served these neighborhoods for years, stay open long hours, and carry more wig styles than Crownwell will at opening.
However, popular braiding hair colors can sell out before the weekend, and customers may not always get help choosing wigs or shopping in Spanish.
- A national salon-supply chain store
These stores sell professional hair colors, tools, and styling products. They also have established loyalty programs.
But they mainly serve licensed stylists and carry fewer wigs and braiding hair options than neighborhood beauty supply stores.
Indirect Competitors
- Big-Box Stores, Drugstores & Dollar Stores
These stores sell popular hair care brands at low prices. Customers can buy them while shopping for other essentials. However, they usually carry fewer textured hair products, wigs, and braiding hair options.
- Online Marketplaces & Social Shops
Online stores offer a wide product selection and home delivery. But customers can’t try on wigs or check hair colors in person before buying. Returns can also take time.
- Braiders Who Resell Hair
Some braiders sell hair directly to their clients, but they usually carry a limited range of colors and styles. Crownwell plans to attract these professionals with trade pricing and a wider product selection.
Crownwell’s Competitive Advantage
Crownwell doesn’t need to be the biggest beauty supply store in the area. Its goal is to keep popular hair colors in stock, offer helpful service in English and Spanish, and price everyday products competitively.
Marketing & Sales Strategy
Crownwell’s marketing focuses on the neighborhood. Most shoppers will live within a 10-minute drive or walk. The store will spend its money close to home and give people good reasons to come back.
Grand Opening
Crownwell opens quietly on Thursday, April 29, 2027, for friends, family, and invited braiders. The grand opening follows on Saturday, May 1.
The $7,000 launch budget pays for:
- Door hangers and postcards in English and Spanish for about 8,000 nearby homes
- Local social media ads
- A weekend of free wig fittings, with a free wig cap for each fitting
- Gift bags for the first 100 shoppers
- A table at a neighborhood church and school event in May
From the first day, staff invites every shopper to join Crownwell Rewards at the register.
Everyday Marketing
A Google Business Profile is the first place nearby shoppers look. Crownwell keeps its hours, photos, and new arrivals current there and asks happy shoppers for reviews, with a goal of 150 reviews in Year 1.
On Instagram and TikTok, the team posts three times a week:
- New wigs on the wall
- Braiding hair colors in stock
- Quick install tips
Local ads reach people within 3 miles of the store. Posts and in-store signs also run in Spanish.
Two promotions follow the busy seasons: back-to-school braids in late July and August, and a holiday wig event in early December. The store also sponsors a school step team and a youth league, and it leaves flyers at laundromats and churches.
Crownwell has allocated $12,000 for marketing in Year 1, distributed across six activities:
| Marketing Activity | Year 1 Budget |
|---|---|
| Social media ads | $3,000 |
| Seasonal promotions | $2,500 |
| Crownwell Rewards | $2,400 |
| Braider outreach | $1,600 |
| Local sponsorships | $1,500 |
| Printed flyers | $1,000 |
| Total Marketing Budget | $12,000 |
Crownwell Rewards
Crownwell Rewards runs inside the store’s point-of-sale (POS) system. Members earn one point per dollar and get $5 off for every 100 points, plus a birthday coupon.
The program also texts members when their usual braiding hair color or wig style is back in stock. A shopper who might have bought it somewhere else comes back instead. Here’s what that text looks like:
Each member’s purchase history also helps staff suggest the right products on the next visit. Kiara’s goal is for members to make most of the store’s sales by Year 2.
Staff greet every shopper, help at the wig wall, and remember regulars’ colors. In a neighborhood store, this kind of service brings people back more than discounts do.
Operations Plan
Running Crownwell smoothly comes down to two jobs: keeping the right stock on the shelves and helping every shopper find what they came for.
Operating Hours & Staffing
Crownwell is open Monday through Saturday from 9:30 AM to 8:00 PM, and Sunday from 11:00 AM to 6:00 PM. It closes on Easter Sunday, Thanksgiving, Christmas Day, and New Year’s Day.
Two people work the floor during open hours, and three on Saturdays. At least one Spanish speaker works every shift.
Here’s the team at opening:
| Role | Hours per Week | Pay | Main Duties |
|---|---|---|---|
| Owner and store manager (Kiara Whitfield) | About 50 | $36,000 salary in Year 1 | Ordering, pricing, receiving, wig help, scheduling, and the books |
| Assistant manager (One full-time hire) | 40 | $20.00 per hour | Opening and closing, cash, and weekly stock counts |
| Sales associates (Three part-time hires) | About 22 each | $16.00 per hour | Register, restocking, customer help, and Rewards sign-ups |
The associate wage is close to the Dallas-area median for retail salespeople, $16.06 per hour in May 2025. Extra hours on Saturdays and before holidays go to the part-time team.
Suppliers & Ordering
Crownwell buys from five supplier accounts:
- Two full-line beauty supply distributors in the Dallas area, for most hair care, styling, cosmetics, and accessories, with weekly delivery; Kiara has ordered from both for years
- Two hair companies’ direct accounts, for braiding hair, crochet hair, wigs, and bundles, bought by the case
- One cash-and-carry wholesaler in the Harry Hines Boulevard wholesale district, for fill-ins and new trending items, which Kiara picks up on Mondays
Crownwell pays for its opening order before launch. New accounts then ask for payment on delivery for the first three months, from May through July 2027. Once the store has a payment record, it moves to Net 30 terms in August.
This is why Crownwell opens with a $42,483 cash reserve. It pays for restocking until supplier credit starts.
Crownwell gives each supplier a Texas resale certificate, which lets it buy stock without paying sales tax on it. Before opening a new hair account, Kiara tests samples and gets case pricing, dye-lot matching, and return terms for damaged goods in writing.
Inventory Control
Crownwell aims to keep 90 days of stock on hand at cost, which means the shelves turn over about four times a year. This keeps the store full without tying up cash in boxes.
Every product has a minimum and a maximum level in the POS, and the low-stock report drives each order. The 300 best sellers are never allowed to run out.
Each category sells at its own pace. Hair care turns over about six times a year, but wigs turn over only about 2.4 times. So wigs are stocked two deep in each style and color, and each one is reordered as soon as it sells.
Staff counts one section each week and the whole store twice a year, in January and July. A product with no sale in 90 days gets marked down. After 180 days, it moves to the clearance shelf.
Products with expiration dates sell the oldest first. Shoppers can special-order a style or color with a 50% deposit.
Store Layout & Security
The layout keeps high-value items close to the counter and gives wig shoppers room to try on styles:
Crownwell plans for shrink, meaning theft, damaged packs, and expired stock, as part of the product cost.
A 16-camera system with a monitor at the counter, anti-theft gates, and tags on wigs and hot tools help keep those losses small. Staff on the floor greet every shopper, which also discourages theft.
For hygiene, shoppers try on wigs only over a disposable wig cap. For the same reason, opened hair, wigs, and cosmetics can’t be returned, while unopened products can come back within 14 days with a receipt. These rules protect both the stock and the next shopper.
Licenses & Insurance
Crownwell will operate as a retail beauty supply store, selling hair care products, wigs, cosmetics, and accessories without providing salon services. It will not need a cosmetology establishment license for its planned retail-only operations.
Before opening, it will get:
- A Texas sales and use tax permit from the Texas Comptroller
- A new certificate of occupancy from the City of Dallas, which every new tenant needs
- A City of Dallas sign permit for the exterior sign
Insurance covers general liability, product liability, and property for $4,800 in Year 1. Workers’ compensation coverage protects the staff.
Risk and Mitigation Plan
Like any new store, Crownwell faces a few real risks. Kiara has planned for each one.
In Year 1, the store’s earnings before interest, depreciation, and taxes (EBITDA) cover its loan payments 0.65 times, or 1.34 times before one-time launch costs. The cash reserve pays the difference.
From Year 2, the margin for error grows. Sales could fall about 9% below the forecast, to roughly the Year 1 pace of 66 a day, before EBITDA stops covering the loan. Debt coverage stays at 1.25 times or more unless Year 2 sales fall more than 5%.
The four risks that matter most are:
| Risk | How Crownwell Will Manage It |
|---|---|
| Slower sales than planned | Use the cash reserve, reduce slow-moving inventory orders, and defer part of Kiara’s salary if needed. |
| Higher product costs | Compare supplier prices, buy popular hair products by the case when economical, and adjust retail prices carefully. |
| Theft and damaged stock | Use cameras, anti-theft gates, locked displays, and weekly stock counts to limit losses. |
| Supplier shortages and stockouts | Maintain backup suppliers and extra stock of popular hair colors and lengths to avoid missed sales. |
Kiara will review sales, inventory losses, and cash flow each month. If results fall behind the forecast, she will adjust purchasing and expenses before the shortfall grows.
Financial Plan
Crownwell Beauty Supply needs $235,000 to open, funded by a $180,000 SBA 7(a) loan from Brennford Bank and $55,000 of Kiara’s savings. One-time launch costs leave Year 1 with a small loss, and the store turns a profit from Year 2.
Startup Costs
| Category | Amount |
|---|---|
| Store Build-Out & Equipment | |
| Leasehold improvements (flooring, lighting, try-on area, restroom) | $32,000 |
| Store fixtures and 120-head wig wall | $28,000 |
| POS system, cameras, and anti-theft gates | $12,500 |
| Exterior sign and window graphics | $6,500 |
| Inventory & Prepaid Costs | |
| Opening inventory | $85,000 |
| Prepaid first month’s rent | $4,167 |
| Prepaid first-year insurance | $4,800 |
| One-Time Launch Costs | |
| Grand opening marketing | $7,000 |
| Licenses and permits | $1,500 |
| Legal and professional setup | $3,500 |
| Staff hiring and training | $2,000 |
| POS product loading and website setup | $1,500 |
| SBA guaranty fee | $4,050 |
| Working Capital | |
| Cash reserve | $42,483 |
| Total Startup Costs | $235,000 |
Financial Assumptions
| Assumption | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Days open | 361 | 361 | 361 |
| Average sales per open day | 66 | 73 | 80 |
| Customer transactions | 24,000 | 26,400 | 29,040 |
| Average sale | $27.00 | $27.00 | $27.00 |
| Product cost, freight, and shrink (share of revenue) | 55.0% | 55.0% | 55.0% |
| Store labor (share of revenue) | 14.9% | 14.9% | 14.9% |
| Payroll tax (share of wages) | 9.0% | 9.0% | 9.0% |
| Rent per sq ft, all-in | $25.00 | $25.75 | $26.52 |
| Card processing fees (share of revenue) | 2.5% | 2.5% | 2.5% |
| Inventory on hand (days of product cost) | 90 | 90 | 90 |
| Supplier terms at year-end | Net 30 | Net 30 | Net 30 |
| Loan payment per month | $2,353.86 | $2,353.86 | $2,353.86 |
Sales & Margins by Category
| Category | Products | Opening Stock | Share of Sales | Year 1 Sales | Product Margin | Stock Turns (Year 1) |
|---|---|---|---|---|---|---|
| Hair care & styling | 1,400 | $21,000 | 30% | $194,400 | 34% | 6.1x |
| Braiding hair, crochet & extensions | 2,600 | $19,000 | 22% | $142,560 | 52% | 3.6x |
| Wigs | 450 | $24,000 | 20% | $129,600 | 55% | 2.4x |
| Tools & accessories | 800 | $11,000 | 15% | $97,200 | 55% | 4.0x |
| Cosmetics, skincare & nail | 1,300 | $10,000 | 13% | $84,240 | 42% | 4.9x |
| Total | 6,550 | $85,000 | 100% | $648,000 | 46.35% | 4.1x |
Projected Profit & Loss
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | |||
| Product sales | $648,000 | $712,800 | $784,080 |
| Total Revenue | $648,000 | $712,800 | $784,080 |
| Cost of Goods Sold | |||
| Product cost, freight, and shrink | $356,400 | $392,040 | $431,244 |
| Store labor | $96,552 | $106,207 | $116,828 |
| Payroll tax on store labor | $8,690 | $9,559 | $10,515 |
| Total Cost of Goods Sold | $461,642 | $507,806 | $558,587 |
| Gross Profit | $186,358 | $204,994 | $225,493 |
| Gross Margin | 28.8% | 28.8% | 28.8% |
| Operating Expenses | |||
| Owner salary | $36,000 | $42,000 | $48,000 |
| Payroll tax on owner salary | $3,240 | $3,780 | $4,320 |
| Rent, all-in | $50,000 | $51,500 | $53,045 |
| Insurance | $4,800 | $5,000 | $5,200 |
| Accounting, legal, and license renewals | $4,200 | $4,300 | $4,400 |
| Utilities, phone, and internet | $7,800 | $8,000 | $8,200 |
| Marketing | $12,000 | $12,000 | $12,500 |
| Store supplies | $4,500 | $4,900 | $5,300 |
| Repairs and maintenance | $2,000 | $2,200 | $2,400 |
| POS software, camera monitoring, and website | $5,400 | $5,500 | $5,600 |
| Delivery and vehicle | $2,400 | $2,500 | $2,600 |
| Card processing fees | $16,200 | $17,820 | $19,602 |
| One-time launch costs | $19,550 | – | – |
| Total Operating Expenses | $168,090 | $159,500 | $171,167 |
| EBITDA | $18,268 | $45,494 | $54,326 |
| Depreciation | $10,629 | $10,629 | $10,629 |
| Interest expense | $17,059 | $15,918 | $14,661 |
| Net Income (Pre-Tax) | ($9,420) | $18,947 | $29,036 |
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Projected Balance Sheet
| Category | Opening | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|
| Assets | ||||
| Cash | $62,033 | $87,435 | $98,824 | $118,459 |
| Inventory | $85,000 | $87,879 | $96,667 | $106,334 |
| Prepaid rent and insurance | $8,967 | $0 | $0 | $0 |
| Build-out, fixtures, and equipment, net | $79,000 | $68,371 | $57,742 | $47,113 |
| Total Assets | $235,000 | $243,685 | $253,233 | $271,906 |
| Liabilities | ||||
| Accounts payable | $0 | $29,293 | $32,222 | $35,445 |
| SBA 7(a) loan | $180,000 | $168,812 | $156,484 | $142,898 |
| Total Liabilities | $180,000 | $198,105 | $188,706 | $178,343 |
| Equity | ||||
| Owner’s capital | $55,000 | $55,000 | $55,000 | $55,000 |
| Retained earnings | $0 | ($9,420) | $9,527 | $38,563 |
| Total Equity | $55,000 | $45,580 | $64,527 | $93,563 |
| Total Liabilities & Equity | $235,000 | $243,685 | $253,233 | $271,906 |
Projected Cash Flow
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Beginning Cash | $62,033 | $87,435 | $98,824 |
| Operating Activities | |||
| Net income (pre-tax) | ($9,420) | $18,947 | $29,036 |
| Depreciation | $10,629 | $10,629 | $10,629 |
| Change in inventory | ($2,879) | ($8,788) | ($9,667) |
| Change in accounts payable | $29,293 | $2,929 | $3,223 |
| Change in prepaid rent and insurance | $8,967 | $0 | $0 |
| Net Cash from Operations | $36,590 | $23,717 | $33,221 |
| Financing Activities | |||
| Loan principal repaid | ($11,188) | ($12,328) | ($13,586) |
| Net Cash from Financing | ($11,188) | ($12,328) | ($13,586) |
| Net Change in Cash | $25,402 | $11,389 | $19,635 |
| Ending Cash | $87,435 | $98,824 | $118,459 |
Break-Even Analysis
| Metric | Value |
|---|---|
| Average sale | $27.00 |
| Variable cost per sale (product, store labor, card fees) | $19.91 |
| Contribution per sale | $7.09 |
| Contribution margin | 26.3% |
| Annual fixed costs, before depreciation and interest (Year 2) | $141,680 |
| Break-even sales per year | 19,984 |
| Break-even sales per open day | 55 |
| Break-even revenue | $539,568 |
| Planned sales (Year 2) | 26,400 |
Loan Repayment & Debt Coverage
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Interest | $17,059 | $15,918 | $14,661 |
| Principal | $11,188 | $12,328 | $13,586 |
| Ending loan balance | $168,812 | $156,484 | $142,898 |
| EBITDA | $18,268 | $45,494 | $54,326 |
| EBITDA before one-time launch costs | $37,818 | $45,494 | $54,326 |
| Debt coverage | 0.65x | 1.61x | 1.92x |
| Debt coverage before one-time launch costs | 1.34x | 1.61x | 1.92x |
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