Laser Dreams specializes in laser hair removal, electrolysis, and microdermabrasion. We prioritize the needs of our patients and provide state-of-the-art technology and superior quality service. Our hair removal methods are FDA approved, gentle, and effective, offering a quicker and more cost-effective solution compared to other permanent hair removal methods. We are experts in treating difficult cases and use the latest generation lasers, specifically the GentleLASEā„¢ Plus and Lightsheer Diode, both FDA approved for "PERMANENT HAIR REDUCTION." These lasers deliver remarkable results while ensuring the skin’s surface remains cool.

Located downtown in the Millman Building, Laser Dreams caters to over 6,000 urban professionals who value convenience. Our location allows them to visit our facility and return to work within 30 minutes. Joe Jackson and Allison Fremont, co-owners of Laser Dreams, have over ten years of experience managing laser hair removal centers. They believe that excellent customer service is vital to retain and generate referrals from customers.

Hair Removal Business Plan Example

1.1 Objectives

The objectives of Laser Dreams are:

  • Exceed 60% of daily appointment times filled by the end of the first year.
  • Achieve 50% of new customers from referrals by the end of the first year.
  • Increase sales by 15% by the end of the second year.

1.2 Mission

The mission of Laser Dreams:

  • Create a customer-focused environment that promotes referrals.
  • Promote the success of clients in meeting their cosmetic goals.

Company Summary

Laser Dreams specializes in laser hair removal, electrolysis, and microdermabrasion. We are a professional facility that provides state-of-the-art technology and superior quality service. Our FDA-approved hair removal methods are gentle, effective, and cost and time-efficient. Laser Dreams operates as a general partnership, managed by Joe Jackson and Allison Fremont.

2.1 Company Ownership

Laser Dreams is co-owned by Joe Jackson and Allison Fremont.

2.2 Start-up Summary

The start-up expenses for Laser Dreams primarily focus on equipment and treatment rooms. Joe and Allison will each invest $30,000, and the facility will secure a $100,000 long-term loan.

Hair Removal Business Plan Example

Start-up

Requirements

Start-up Expenses

Legal: $1,000

Stationery etc.: $100

Brochures: $3,000

Insurance: $1,000

Rent: $3,000

Expensed Equipment: $60,000

Total Start-up Expenses: $68,100

Start-up Assets

Cash Required: $41,900

Other Current Assets: $20,000

Long-term Assets: $30,000

Total Assets: $91,900

Total Requirements: $160,000

Start-up Funding

Start-up Expenses to Fund: $68,100

Start-up Assets to Fund: $91,900

Total Funding Required: $160,000

Assets

Non-cash Assets from Start-up: $50,000

Cash Requirements from Start-up: $41,900

Additional Cash Raised: $0

Cash Balance on Starting Date: $41,900

Total Assets: $91,900

Liabilities and Capital

Liabilities

Current Borrowing: $0

Long-term Liabilities: $100,000

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $100,000

Capital

Planned Investment

Investor 1: $30,000

Investor 2: $30,000

Additional Investment Requirement: $0

Total Planned Investment: $60,000

Loss at Start-up (Start-up Expenses): ($68,100)

Total Capital: ($8,100)

Total Capital and Liabilities: $91,900

Total Funding: $160,000

2.3 Company Locations and Facilities

Laser Dreams is located in downtown Monroe, in the Millman Building. The facility is quickly accessible to over 6,000 urban professionals who Laser Dreams considers potential customers.

Products and Services

Laser Dreams’ services and products:

– Laser hair removal: A laser beam disables hair follicles. It is quick and total areas can be treated in a short time (five weeks) unlike electrolysis that takes months or years to permanently remove hair. One hour for larger areas: arms, back, and legs. Fifteen minutes for small areas: face, chin, lip, neck.

– Electrolysis: Thermolysis, Galvanic and the Blend are offered. Together with laser hair removal, it offers a permanent solution to any hair left untreated by the laser, such as gray, light blondes, and some redheads.

– Waxing: Using only the finest waxes available (suitable for customer skin type) for temporary hair removal.

READ MORE  Office Furniture Manufacturer Business Plan Example

– END-ZIT: Welcome to the extraordinary world of END-ZIT Blemish Drying Lotion and family of blemish control and oily skin care products! All products are dermatology tested and approved. By using the END-ZIT Control Program of cleansing, toning, and treatment, you can eradicate those ghastly zits!

– END-ZIT Blemish Drying Lotion: An extraordinary, medicated, skin-tone tinted drying lotion formula designed to conceal, while it heals and dries unsightly pimples. Amazingly, most blemish breakouts simply disappear after just a day or two of use.

Market Analysis Summary

Downtown Monroe has emerged from the recent recession to regain its position as the heart of the city. The growth has been fueled by increased employment in the city’s high-technology companies. This has attracted the target customer for Laser Dreams: professional women aged 21-45.

Another target group is professional men who want excess hair removed. Joe and Allison are aware that these men may be uncomfortable visiting the facility, so a side entrance has been set up with a small waiting room to accommodate any customer who wants privacy.

4.1 Market Segmentation

Laser Dreams will focus on two customer groups:

– Urban professional women aged 21-45

– Urban professional men aged 21-35

Hair Removal Business Plan Example

Market Analysis

Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Professional Women 15% 10,000 11,500 13,225 15,209 17,490 15.00%

Professional Men 5% 1,000 1,050 1,103 1,158 1,216 5.01%

Total 14.19% 11,000 12,550 14,328 16,367 18,706 14.19%

Strategy and Implementation Summary

Laser Dreams will market through downtown fitness clubs, beauty salons, tanning salons, and boutiques. Additionally, Laser Dreams will offer the first treatment free.

Competitive Edge

Laser Dreams’ competitive advantage is its location. Once we attract customers, our customer-focused environment will be our advantage. Each customer represents a potential lead to ten more customers.

To develop effective business strategies, perform a SWOT analysis of your business. Use our free guide and template to learn how.

Sales Forecast

Laser Dreams expects sales to be slow in the first and second month due to our "first treatment free" promotion. Afterwards, sales will increase as satisfied customers refer their friends. Below is the sales forecast for three years.

Hair Removal Business Plan Example

Hair Removal Business Plan Example

Sales Forecast:

Year 1 Year 2 Year 3

Hair Removal $125,000 $170,000 $215,000

Products $10,300 $20,000 $30,000

Total Sales $135,300 $190,000 $245,000

Direct Cost of Sales:

Year 1 Year 2 Year 3

Hair Removal $0 $0 $0

Products $0 $0 $0

Subtotal Direct Cost of Sales $0 $0 $0

Personnel Plan:

Joe Jackson has managed both the BareAll Laser Center (two years) and the Laser Works (three years). Customer traffic increased by 15% each year at both locations.

Allison Fremont set up and managed the laser hair removal section of Maximum Beauty Salon for five years. Sales grew by 10% each year under her leadership.

Both Joe and Allison have the following certifications and association memberships:

Registered Electrologists (R.E.)

Certified Clinical Electrologists (C.C.E.)

Society of Clinical and Medical Electrologists (S.C.M.E.)

Laser Dreams’ personnel will be:

– Joe Jackson

– Allison Fremont

– Receptionist/clerk (1)

Personnel Plan:

Year 1 Year 2 Year 3

Joe Jackson $36,000 $40,000 $45,000

Allison Fremont $36,000 $40,000 $45,000

Receptionist/Clerk $21,600 $25,000 $28,000

Total People 3 3 3

Total Payroll $93,600 $105,000 $118,000

Financial Plan:

The financial plan for Laser Dreams is as follows.

Break-even Analysis:

The monthly break-even point is approximately $13,300.

Hair Removal Business Plan Example

Break-even Analysis:

Monthly Revenue Break-even: $13,329

Assumptions:

– Average Percent Variable Cost: 0%

– Estimated Monthly Fixed Cost: $13,329

7.2 Projected Cash Flow:

The table and chart below show the projected cash flow for three years.

Hair Removal Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $135,300 $190,000 $245,000
Subtotal Cash from Operations $135,300 $190,000 $245,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $135,300 $190,000 $245,000
Expenditures
Expenditures from Operations
Cash Spending $93,600 $105,000 $118,000
Bill Payments $62,348 $72,440 $87,565
Subtotal Spent on Operations $155,948 $177,440 $205,565
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $5,160 $5,160 $5,160
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $161,108 $182,600 $210,725
Net Cash Flow ($25,808) $7,400 $34,275
Cash Balance $16,092 $23,492 $57,767
READ MORE  10 Business Plan Myths That Hurt Your Business -

7.3 Projected Profit and Loss

The table and charts below display the projected profit and loss for three years.

Hair Removal Business Plan Example

Hair Removal Business Plan Example

Pro Forma Profit and Loss

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $135,300 $190,000 $245,000
Direct Cost of Sales $0 $0 $0
Other Production Expenses $0 $0 $0
Total Cost of Sales $0 $0 $0
Gross Margin $135,300 $190,000 $245,000
Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $93,600 $105,000 $118,000
Sales and Marketing and Other Expenses $6,000 $8,000 $10,000
Depreciation $8,568 $8,568 $8,568
Leased Equipment $0 $0 $0
Utilities $3,300 $3,300 $3,300
Insurance $2,400 $2,400 $2,400
Rent $36,000 $36,000 $36,000
Payroll Taxes $10,080 $13,050 $15,750
Other $0 $0 $0
Total Operating Expenses $159,948 $176,318 $194,018
Profit Before Interest and Taxes ($24,648) $13,682 $50,982
EBITDA ($16,080) $22,250 $59,550
Interest Expense $9,721 $9,226 $8,710
Taxes Incurred $0 $1,337 $12,682
Net Profit ($34,369) $3,119 $29,590
Net Profit/Sales -25.40% 1.64% 12.08%

Projected Balance Sheet

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $16,092 $23,492 $57,767
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $36,092 $43,492 $77,767
Long-term Assets
Long-term Assets $30,000 $30,000 $30,000
Accumulated Depreciation $8,568 $17,136 $25,704
Total Long-term Assets $21,432 $12,864 $4,296
Total Assets $57,524 $56,356 $82,063
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $5,153 $6,026 $7,302
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $5,153 $6,026 $7,302
Long-term Liabilities $94,840 $89,680 $84,520
Total Liabilities $99,993 $95,706 $91,822
Paid-in Capital $60,000 $60,000 $60,000
Retained Earnings ($68,100) ($102,469) ($99,349)
Earnings ($34,369) $3,119 $29,590
Total Capital ($42,469) ($39,349) ($9,759)
Total Liabilities and Capital $57,524 $56,356 $82,063
Net Worth ($42,468) ($39,349) ($9,759)

Business Ratios

Pro Forma Profit and Loss:

Sales:

Month 1: $0

Month 2: $2,300

Month 3: $5,700

Month 4: $8,000

Month 5: $11,000

Month 6: $13,000

Month 7: $15,000

Month 8: $15,000

Month 9: $16,000

Month 10: $16,000

Month 11: $16,100

Month 12: $17,200

Direct Cost of Sales:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Other Production Expenses:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Total Cost of Sales:

Month 1-12: $0

Gross Margin:

Month 1: $0

Month 2: $2,300

Month 3: $5,700

Month 4: $8,000

Month 5: $11,000

Month 6: $13,000

Month 7: $15,000

Month 8: $15,000

Month 9: $16,000

Month 10: $16,000

Month 11: $16,100

Month 12: $17,200

Gross Margin %:

Month 1-12: 0.00%

Expenses:

Payroll:

Month 1-12: $7,800

Sales and Marketing and Other Expenses:

Month 1-12: $500

Depreciation:

Month 1-12: $714

Leased Equipment:

Month 1-12: $0

Utilities:

Month 1-11: $300

Month 12: $0

Insurance:

Month 1-12: $200

Rent:

Month 1-12: $3,000

Payroll Taxes: (15%)

Month 1-12: $840

Other:

Month 1-12: $0

Total Operating Expenses:

Month 1-11: $13,354

Month 12: $13,054

Profit Before Interest and Taxes:

Month 1: ($13,354)

Month 2: ($11,054)

Month 3: ($7,654)

Month 4: ($5,354)

Month 5: ($2,354)

Month 6: ($354)

Month 7: $1,646

Month 8-9: $1,646

Month 10-11: $2,646

Month 12: $2,746

Net Profit:

Month 1: ($14,184)

Month 2: ($11,880)

Month 3: ($8,477)

Month 4: ($6,173)

Month 5: ($3,169)

Month 6: ($1,166)

Month 7: $838

Month 8-9: $841

Month 10-11: $1,845

Month 12: $1,952

Net Profit/Sales:

Month 1: 0.00%

Month 2: -516.53%

Month 3: -148.71%

Month 4: -77.16%

Month 5: -28.81%

Month 6: -8.97%

Month 7: 5.59%

Month 8-9: 5.61%

Month 10-11: 11.53%

Month 12: 12.12%

Pro Forma Cash Flow:

Cash Received:

Month 1-12: Same as Sales

Cash from Operations:

Month 1-12: Same as Cash Sales

Additional Cash Received:

Month 1-12: Same as Sales Tax, VAT, HST/GST Received

New Current Borrowing:

Month 1-12: $0

New Other Liabilities (interest-free):

Month 1-12: $0

New Long-term Liabilities:

Month 1-12: $0

Sales of Other Current Assets:

Month 1-12: $0

Sales of Long-term Assets:

Month 1-12: $0

New Investment Received:

Month 1-12: $0

Subtotal Cash Received:

Month 1-12: Same as Cash Sales

Expenditures:

Expenditures from Operations:

Month 1-12: Same as Cash Spending

Cash Spending:

Month 1-12: Same as Payroll

Bill Payments:

Month 1: $189

Month 2-11: $5,670

Month 12: $5,624

Subtotal Spent on Operations:

Month 1-12: $7,989-$13,424

Additional Cash Spent:

Month 1-12: Same as Sales Tax, VAT, HST/GST Paid Out

Principal Repayment of Current Borrowing:

Month 1-12: $0

Other Liabilities Principal Repayment:

Month 1-12: $0

Long-term Liabilities Principal Repayment:

Month 1-12: $430

Purchase Other Current Assets:

Month 1-12: $0

Purchase Long-term Assets:

Month 1-12: $0

Dividends:

Month 1-12: $0

Subtotal Cash Spent:

Month 1-12: $8,419-$13,854

Net Cash Flow:

Month 1: ($8,419)

Month 2: ($11,600)

Month 3: ($8,196)

Month 4: ($5,892)

Month 5: ($2,889)

Month 6: ($885)

Month 7: $1,118

Month 8-9: $1,122

Month 10-11: $2,125

Month 12: $3,346

Cash Balance:

Month 1: $33,481

Month 2: $21,881

Month 3: $13,685

Month 4: $7,793

Month 5: $4,904

Month 6: $4,019

Month 7: $5,137

Month 8: $6,259

Month 9: $8,384

Month 10: $10,513

Month 11: $12,746

Month 12: $16,092

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 40.43% 28.95% 7.50%
Percent of Total Assets
Other Current Assets 34.77% 35.49% 24.37% 36.10%
Total Current Assets 62.74% 77.17% 94.77% 52.40%
Long-term Assets 37.26% 22.83% 5.23% 47.60%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 8.96% 10.69% 8.90% 31.90%
Long-term Liabilities 164.87% 159.13% 102.99% 26.80%
Total Liabilities 173.83% 169.82% 111.89% 58.70%
Net Worth -73.83% -69.82% -11.89% 41.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 105.89% 91.73% 84.21% 73.40%
Advertising Expenses 4.43% 4.21% 4.08% 2.50%
Profit Before Interest and Taxes -18.22% 7.20% 20.81% 3.20%
Main Ratios
Current 7.00 7.22

Leave a Reply

Your email address will not be published. Required fields are marked *