Hair Salon Startup Business Financial Analysis – Case Study 

Introduction

The Oak Business Consultant prepares the following case study about a beauty and personal care store. The case study is about a hair salon business startup that wanted to raise funds for their company and streamline business operations with the help of an Excel financial analysis.

This case study illustrates the methodology and analytical tools employed in creating a financial analysis for the beauty and personal care sector. Our company’s financial analyses are designed to be adaptable, incorporating intricate formulas that enable rapid updates.

Challenges 

• Our client wanted us to identify the competitor’s price, employee counts and revenue etc., to identify the competitor’s strategy and recommend the best possible strategic plan to our client. 
• Our client company was unsure about the cost and pricing strategy of the products. Therefore, they wanted to recommend selling prices for their products. 
• Our client wanted us to forecast the income statement and the company’s possible revenues and expenses. 
• Our client wanted to manage its cash and maintain a good cash flow for their hair salon business startup. Therefore, we prepared the cash flow statement for our client company with all the details regarding the cash inflows and outflows details. 
• Our client wanted us to analyze the profitability of the E-commerce stream separately.  

Solutions

• To perform competitor analysis, we researched the competitors and analyzed their strengths, weakness and other valuable financial information. 
• To determine the selling price of the products, we break down the costs and add a profit margin to get the final selling price. 

• To forecast the financial statements, we researched the region’s growth rate, inflation rates and market trends. Based on this research, we concluded and forecasted the financial statement. 
• We prepared cash flow statements with forecasts to manage cash for our client’s hair salon business and maintain good cash flows. 
• Our experts from Oak Business Consultants researched and analyzed the available e-commerce platforms. Moreover, we prepared a profit and loss statement for the e-commerce platform. 

Financial Highlights

We prepared a financial highlights section for our client to present a concise and easily understandable summary of the company’s financial performance over a period of time.

Income Statement

To analyze the profit and loss situation in a business, it is essential to prepare the monthly income statement to review the monthly performance of the business. The monthly income statement allows our client to identify the cause for the loss or profit in a time period. 

Shopify Income Statement 

We prepared a separate income statement for the Shopify platform for our client company. Because the client wanted to check the potential of the e-commerce market and its revenue. In addition, we prepared a complete income statement that shows the revenue, costs of goods sold, expenses and net profit for our client’s hair salon business. 

Cash flow Statment 

The top financial analysts from Oak Business Consultant prepared the cash flow statement for the client company. The cash flow statement includes operating activities, representing all the cash inflows and outflows related to a company’s primary business activities. Moreover, the investing activities present the investment within and outside the business. The financing activity presents any funds raised by the company to fund its operations. 

Inventory Schedule 

The client company wanted us to assist in the planning and managing of inventory. Therefore, we prepared the inventory schedule for the company. The inventory schedule recommends the opening inventory that should be held, the number of inventory to be purchased and other helpful information to keep the business running smoothly. 

Competitor Analysis

Our team prepared a competitor analysis for our client’s hair salon business. The competitor analysis gives an idea about the strength and weaknesses of the competitors. Moreover, with the help of this competitor analysis, our client can understand the competitors’ strategies and plan accordingly.  

Competitor Pricing 

Our client wanted us to analyze the products and prices available in the market. By conducting extensive market research, we found the number of products that are being sold in the market that are in direct competition with our client’s products. By price comparison with the competition in reference to the price-cost analysis, we performed for the client company’s products. W also suggested a competitive price that will help maintain the company’s profitability.

Conclusion

The beauty and personal care industry is expanding rapidly over the world. The beauty and personal care industry is becoming popular daily due to increased awareness, improved standards of living, better economic conditions, etc.  
The Oak Business Consultant team’s leading financial analysts undertook this project and developed an intricate financial analysis for our client. We are committed to delivering unparalleled business and financial solutions that enable our clients to reach their full potential.