ONLINE BUSINESS

Jan Anderson and Leigh Wilson have established a partnership under the name JANLEE STYLES to start a hairdressing salon in the Arton suburb. A good location has become available direct competition is minimal and the area growth prospect are attractive. The partners have qualifications as hairdresser and several years experience at a well know city salon. They wish to establish their won enterprise develop the business and  progress to ownership of at least one additional shop so that each can have a management responsibility in a group operation.

Sufficient funds have been saved to deal with most of the startup requirement which include fittings and fixtures, equipment and consumables inventory. Additional startup capital will be invested by Leigh Wilson’s fiancé who will remain a silent partner. A bank overdraft facility of $5,000 is desired for the first 6 month of operation at which point cash flow, inclusive of overdraft draw payback, will be positive. Overdraft security can be provided by the partners and the additional personal guarantee of the silent partner.

Based on experience and market evaluation, the business should achieve gross revenue of $71,600 during the first operating year followed by $94,660 and $113,592 in the second and third years respectively. The ability to cope with an expected business growth through the third year, and the accumulation of cash reserves from profits, will permit planning for the purchase or setup of another salon. The partners intend to minimize their own incomes in order to plan for an expansion opportunity in three years.

The partners have good professional experience and the necessary creative imaginatively and operational plans will be followed. It is believed that the business has good opportunity and the necessary bank loan can be secured and repaid within five years. The business is a family commitment.