A beauty parlor or hair salon model can be split into three main revenue categories. Haircuts, add-on services, and products. Each of those is focused on when driving the configuration for how revenue is forecasted across this 10-year financial model and DCF Analysis Excel template.
Each of the three main revenue categories has 10 slots and for each of those the start month, monthly sales by year and average price are defined. It is a bottom-up style for modeling. Each of the three categories is accompanied by a sensitivity for how the actual forecast may change from a base input. The user can pick low, base, or high and define the magnitude that low and high change relative to the base inputs.
Costs are defined in a few different schedules. The first are one-time startup costs, which will include things like the purchase of equipment / chairs / initial website and anything else that has to be purchased in order to begin operations of your beauty parlor.
The next is on-going operating expenses, which would include things like salaries, rent, utilities, and any other regular on-going cost that must be paid to keep the business running. Each of those slots also has a start month for strategy / scaling purposes.
Then you may have to plan for future one-time expenditures like building expansion or equipment upgrades and they are expected to happen in a given month in the future, but not be regular recurring costs. This is the capex section and can be configured with up to 13 slots and an amount / month input for each. This will affect cash flow, but not EBITDA.
Next up you have variable costs. These are configured in terms of a direct percentage of revenue and there are up to five of these slots. Examples of what may be included in this would be franchise fees and ad fees, if you are building out a franchise and using their brand. It could also be expected credit card fees or anything else that you want to tie as a direct percentage of revenue.
All of the above assumptions automatically tie together in a monthly and annual pro forma that drives down to EBITDA and cash flow. The break-even year and month are shown (when cash flow covers the initial investment) and the expected cash flows are run through a DCF Analysis to get a final Net Present Value.
There are also three visualizations that display revenue by type and cash flow over time. A high level 10-year executive summary displays the key financial line items, which can be viewed all in one snap shot. The IRR and ROI of the entire project is displayed here.