Table of Content

    Hair Extensions Business plan for starting your own shop

    Are you thinking about beginning your hair extensions commercial enterprise? If your solution is sure, there’s no better time than proper now. Why the capability is endless. You most effectively need to observe Instagram peers that the hair extensions enterprise plays an important function in this digital age.

    Every technology is seeking perfection, whether it be for that each one-vital selfies for social media or the subsequent big circle of the relative’s wedding ceremony. The hair extensions have exploded during the last decade. Influencers have played an indispensable position in their hair extensions tutorials on YouTube, Instagram, Facebook, and Twitter. This isn’t always only a trend; this is here to stay.

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    There is lots of room for everyone inside the hair extensions world, moreover, within the hair extensions commercial enterprise. The hair extensions enterprise breaks through generational limitations because all people, young, and old want to look and feel accurate. The marketplace itself is tremendous, almost countless. This is due to the fact hair extensions aren’t only for the rich but additionally, all monetary wallet excessive and occasional.

    Executive Summary

    There is plenty of room for all and sundry within the hair extensions global, moreover, within the hair extensions business. The hair extensions industry breaks via generational boundaries due to the fact everybody, young and old, desires to appearance, and feels appropriate. The market itself is huge, nearly endless. This is because hair extensions are not just for the rich, but all financial pockets excessive and low.

    How to start a business?

    Starting your very own commercial enterprise usually begins with a great concept of a way to open hair extensions keep. You can also look for some sample of hair extension business plans. Once the seed is sown, pass on to marketplace research for your chosen business concept. You also can search for a pattern business plan for hair extensions shop. Knowing your market is prime to success. Once you have got set up your center market, you may want to ascertain your opening finances and stay with it. Where will your funds for your new venture come from? Locating the proper outlet/belongings is also key to the fulfillment of your investment business plan. The incorrect vicinity can be the demise of any enterprise.

    What are the prices concerned in opening an enterprise?

    The expenses of taking a walk your business enterprise range appreciably. This will all rely upon the place, hire/rent of assets/outlet, and the fee of preliminary stock. Then you need to don’t forget staffing fees, shipping import, and export expenses.

    How to implement business management?

    This critical vicinity is vitally vital for the fulfillment of any business. The right management could make an enterprise, and incorrect control can ruin it. Share your vision with your managers/workforce and make them sense part of something excellent. Show them that they may be valued, and you’ll acquire their loyalty. Make them feel crucial. A great supervisor will reap the willpower in their body of workers, consequently decreasing the personnel turnover rate in line with annum. The business can be more efficient, and economic rewards may be better.

    What the target of this commercial enterprise?

    The Hair extensions Business’s principal target is to deliver hair extensions products to shops huge and small nationally and across the world at a competitive rate offering discounts on standard bulk-buy orders. We wish to face out from the group and offer a wide range of products that exceed our competitors, hence making our commercial enterprise an appealing alternative.

    Bank/SBA Business Plan
    Document for raising debt funding from financial institutions to meet the expectations of the banks, SBA, and government agencies.

    Company Summary

    Planning your Business

    When you are all set to get into the hair extension business, it is essential to plan everything from skretch. When starting a hair extensions store, the business/startup, Hair extensions store, has engaged a consultant to help effect a business plan initially. Hair extensions store’s cost budget/funds for a startup will be coming from –inheritance and a business plan bank loan.

    Define your brand

    Hair extensions store’s measuring stick will be its unique approach on how to start a hair extensions store to customer satisfaction and individual personalization based on customer’s needs. No one customer is the same, and they will not be treated generically. We are not just another hair extensions company, we care about our clients, and they can choose tailor-made order strategies personal to their business. ‘Above and beyond’ is our companies’ motto.

    How to Promote & Market a business

    The promotion and marketing of the Hair extensions store will profoundly engage in social media marketing. Digital marketing is the heart of any successful business today. Instagram, Twitter, Facebook, and LinkedIn will be vital targeted areas. A full-time digital marketing professional will be hired to run this side of the business to maintain its presence online.

    Establish a web presence

    A brand new website is currently under construction to engage a highly effective web presence. This will engage customers and garner new ones. Customers will be able to order online as well as walking into the store. Thus, attracting a more extensive customer base. Keeping up to date with Google analytics will also be essential to maintain a high search position.

    Company Owner

    The owner of the hair extensions store is a young woman who studied the industry at University. She comes from a family who has been in the hair extensions industry for two generations and dreamed of one day owning her own hair extensions business. Her knowledge of the hair extensions industry is vast and will compliment her venture much.

    Why he/she started the business

    Coming from a long line of family business owners, she always knew that she wanted to make her mark on life, be her boss, and create her own brand new company from scratch. With this in mind, the University was her starting point. They need to gain as much knowledge in addition to what she already had to ensure the success of her business.

    How the business started

    A fortuitous inheritance enables the birth of Hair extensions store along with a small business loan. In addition, with a business partner, consultant, and help from family business owners. The business was enabled.

    Hair Extensions Business Plan - Startup Cost

    Start-up Expenses
    Legal $72,500
    Consultants $0
    Insurance $32,750
    Rent $222,500
    Research and Development $32,750
    Expensed Equipment $62,750
    Signs $12,250
    TOTAL START-UP EXPENSES $435,500
    Start-up Assets $22,000
    Cash Required $485,000
    Start-up Inventory $0
    Other Current Assets $322,500
    Long-term Assets $52,625
    TOTAL ASSETS $882,125
    Total Requirements $1,317,625
    START-UP FUNDING $1,317,625
    Start-up Expenses to Fund $435,500
    Start-up Assets to Fund $882,125
    TOTAL FUNDING REQUIRED $1,317,625
    Assets $121,875
    Non-cash Assets from Start-up $195,000
    Cash Requirements from Start-up $0
    Additional Cash Raised $203,125
    Cash Balance on Starting Date $118,750
    TOTAL ASSETS $638,750
    Liabilities and Capital $118,750
    Liabilities $121,875
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $0
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $240,625
    Capital $0
    Planned Investment $1,317,625
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,317,625
    Loss at Start-up (Start-up Expenses) ($919,500)
    TOTAL CAPITAL ($919,500)
    TOTAL CAPITAL AND LIABILITIES $638,750
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    Products

    Products you may get into the hair weave industry, hair vendor are-

    1. A wide range of skincare products will be available, including vegan selections.
    2. Various and trusted brands of aromatherapy body oils from leading and well-known brands
    3. Body lotion for all skin types for both men and women (vegan selections available)
    4. Specialist foot products for the removal of hard skin.
    5. Derma wands for anti-aging skin
    6. Retinal serums
    7. False eyelashes (stick on and semi-permanent)
    8. Micro-blading equipment/products
    9. Hair products, hair dye/bleach/micro rings/micro loops/ hair extensions and wigs
    10. Hair extensions tools, makeup brushes/hairbrushes/tweezers/hair masks/dye mixing bowls/whisks/microbeads/loops/extension hair tape/wig tape/nail drying gadgets/foot spas/nail polish remover/hair clips/hairbands/trays/trolleys/makeup boxes/ nail boxes/

    Marketing Analysis of Hair Extensions Store

    Market Trends

    The observation of market trends is key to the Hair extensions Shop. Using search engines such as Google and Google insights. Twitter trends will also play a key role.

    Note

    Monitoring online trends in the hair extensions world will be important to the business. What is trending in 2020 in business of selling hair? What is trending amongst influencers on social media such as Instagram and YouTube? Market trends are continually changing and evolving, and the monitoring of these trends to ensure we stay ahead of the rest will be paramount.

    Marketing Segmentation

    Grouping customers into regular, occasional, and potential divides will help Hair extensions store to keep on top of analytics that is core to current and future Business. Thus, enabling the business to effect a change of direction when needed. It is important to keep up with consumer demands as this affects the products we stock over time.

    Hair Extensions Business Plan - Market Segmentation

    Market Analysis
    Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 CAGR
    Celebrities 10% 20,000 28,850 29,748 30,500 3.00%
    Female senior citizens 10% 22,334 32,344 43,665 52,544 10%
    Cancer patients 10% 11,433 13,344 16,553 18,745 15%
    Movie actors and actresses 20% 8,322 9,455 10,655 12,867 12%
    High classed personalities 20% 4,333 5,655 6,877 7,877 10%
    Hair stylists 5% 3,256 5,655 6,877 7,877 10%
    Business people 5% 8,322 9,455 10,655 12,867 25%
    Fashion Designers 15% 22,334 32,344 43,665 52,544 10%
    Hair Studios 5% 4,333 5,655 6,877 7,877 5.00%
    Total 100.00% 104,667 142,757 175,572 203,698 100.00%
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    Business Target

    Hair Extensions business’s main targets are hair extensions salons, hairdressers, spas, hotels, and the general public. The aim is to provide everything that a hair/hair extensions salon needs to run their business and to offer all the brands required. The choice for our clients will be a key factor. Limited stock will not be an option if we are to set our business apart from the rest.

    Hair Extensions Business Plan - 3 Years Profit Forecast

    What is the critical Target Market?

    Hair extensions stores’ key target market is as follows: Hair extensions salons/hair extensions spas/Hotels and the crucial Demographic 16/55, although the general demographic will be much broader. Hair extensions are ageless, and everyone wants to look beautiful.

    Operational/Strategic Planning Services

    How to keep customers coming back

    Repeat customers will be at the heart of the Hair extensions store. The most important thing for the success of any business is customer service. To ensure customers keep returning, they will be awarded a bonus card. The more they spend, the more points they receive. These points can be converted to free products and extra discounts off bulk-buys when the points build up. There will be a range of personal delivery options (an area that often fails many customers). Friendly staff and advisors will be on hand for our clients online and instore.

    What will be the average receipt of the business?

    The average customer receipt will be between $100 and $1000, of course, this depends on the size of the business ordering the goods. Bulk-buy goods would expect an average receipt of $1000

    Marketing Strategy

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    With our online presence in the form of a professional website that is compatible with mobile phones will increase our marketing online. We will drive traffic through our site by using/offering an affiliate program to customers. Producing natural hair extensions-focused content with keywords that are guaranteed to rank high on search engines will be necessary. Offering incentives on our Social media platforms such as our Facebook page to engage our followers and get them buying and clicking through to our website. Using Facebook and Instagram ads for businesses to promote our products will be an area that we shall implement at the offset.

    Competitive Analysis

    While preparing the Hair Extensions Business plan, competitive analysis is an essential part to consider. We are in the market when there are numerous other hair extensions organizations inside a mile span. There is an uncertainty that the business will confront the stiff challenge from built-up industry players.

    In any case, the business has recognized the key factors that are long accepted to profit the intensity of different hair extensions product organizations. Putting resources into critical areas, with praiseworthy client assistance, latest management technology, and superb cordial staff, will bring us into the challenge.

    Sales Strategy

    The accompanying techniques will be produced for our store to get more client base:-

    • Showcase our products to corporate customers that are associated with numerous downtown foundations.
    • Extraordinary offers, especially convincing, and adjustable bundles that give high motivating forces to draw in clients.
    • Thorough is showcasing efforts and utilization of both nearby media just as advanced channels to spread business.
    • Offer periodic offers and limits to faithful clients to keep utilizing our products.
    • Ensure that every client gets singular regard for their needs and to get the help they need.

    Sales Monthly

    The business of the store might not be able to pick up the profitability baseline in the first month, but our plan is made in such a way so that we can quickly mitigate that possibility. Although, when it comes to sales, we expect an exponential increment in the first four weeks of the store.

    Hair Extensions Business Plan - Sales Monthly

    Sales Yearly

    As already mentioned, the business of the store might not be able to pick up the profitability baseline in the first month. Still, it will become sufficiently profitable in the first quarter of the first year. We expect that we will reach our full potential of sales under the given capacity in the first year.

    Hair Extensions Business Plan - Sales Yearly

    Sales Forecast

    During the first 12 months: We expect to make a reasonable marginal profit as setup costs will affect the profit margin significantly as with any business plan in its infancy. However, our sales forecast for the first month is expected to be $40,000 due to clients we have attained initially with potential orders already exceeding our expectations. Our target sales for the first 12 months is expected to be a conservative $250,000

    Hair Extensions Business Plan - Unit Sales

    Sales Forecast      
    Sales Year 1 Year 2 Year 3
    Celebrities $ 127,337 $ 133,704 $ 140,389
    Female senior citizens $ 38,150 $ 50,139 $ 52,646
    Cancer patients $ 31,200 $ 32,760 $ 34,398
    Movie actors and actresses $ 47,751 $ 50,139 $ 52,646
    Total Sales $ 244,438 $ 266,742 $ 280,079
    Direct Cost of Sales 2004 2005 2006
    Celebrities $ 31,834 $ 33,426 $ 35,097
    Female senior citizens $ 763 $ 1,003 $ 1,053
    Cancer patients $ 23,876 $ 25,069 $ 26,323
    Subtotal Direct Cost of Sales $ 56,473 $ 59,498 $ 62,473

    Charges For Opening Store

    The fees for opening the Hair extensions store will include the following: Lease/rent costs, staffing costs, stock cost, electricity, water, business rates, telephone, and WiFi.

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    Personnel plan

    The beilow mentioned staff is required while starting a hair business-

    Company Staff

    • Chief Executive Officer
    • Quality Assurance Manager
    • Human Resources and Admin Manager
    • Sales and Marketing Team
    • Accountant
    • Purchasing Manager
    • Store Manager
    • Delivery Driver
    • Customer Service Executives
    • Security Guard

    Average Salary of Employees

    To starting a hair business.the following table describes the average annual salary of each employee and total payroll for the next 3 years –

     Personnel Plan      
    Year 1 Year 2 Year 3
    Chief Executive Officer $ 15,360 $ 18,000 $ 20,000
    Quality Assurance Manager $ 22,675 $ 25,069 $ 28,323
    Human Resources and Admin Manager $ 29,990 $ 32,138 $ 36,646
    Sales and Marketing Team $ 37,305 $ 39,207 $ 44,969
    Accountant $ 44,620 $ 46,276 $ 53,292
    Purchasing Manager $ 51,935 $ 53,345 $ 61,615
    Store Manager $ 59,250 $ 60,414 $ 69,938
    Delivery Driver $ 66,565 $ 67,483 $ 78,261
    Customer Service Executives $ 73,880 $ 74,552 $ 86,584
    Security Guard $ 81,195 $ 81,621 $ 94,907
    Total People 10 10 10
    Total Payroll $ 482,775 $ 498,105 $ 574,535

    Financial Plan

    We have built up a thorough financial arrangement that will completely bolster our business while preparing the business plan for a hair extensions store. Our business will give monetary help with a variety of different speculators. Accessible subsidizing will be accessed and enhanced by an advance that the business means to debit inside the initial three years of opening.

    If you are thinking about how to begin a hair extensions store, do not stress as we can assist you with setting up a point by point budgetary plan.

    Important Assumptions

    We assume that our client base will grow linearly, and the economy will remain strong. Our services might be disrupted due to natural factors, but we will take the top care to make sure that the services remain stable under human conditions.

    General Assumptions
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 10.00% 10.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 30.00% 30.00% 30.00%
    Other 0 0 0

    Brake-even Analysis

    We expect that the hair extension store will break even within the first quarter of the first year of opening.

    Hair Extensions Business Plan - Brake-even Analysis

     Brake-Even Analysis  
    Monthly Revenue Break-even $ 17,601
    Assumptions:
    Average Percent Variable Cost 23%
    Estimated Monthly Fixed Cost $ 13,535

    Projected Profit And Loss

    We might run into a loss for the first month of operations, but we expect to touch the profit baseline within three months of operations.

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $ 244,438 $ 266,742 $ 280,079
    Direct Cost of Sales $ 56,473 $ 59,498 $ 62,473
    Other Costs of Goods $ 0 $ 0 $ 0
    Total Cost of Sales $ 56,473 $ 59,498 $ 62,473
    Gross Margin $ 187,965 $ 207,244 $ 217,606
    Gross Margin % 76.90% 77.69% 77.69%
    Expenses
    Payroll $ 107,155 $ 134,208 $ 141,969
    Marketing/Promotion $ 5,400 $ 5,400 $ 5,400
    Depreciation $ 204 $ 220 $ 220
    Rent $ 21,000 $ 21,000 $ 21,000
    Utilities $ 4,488 $ 4,488 $ 4,488
    Insurance $ 996 $ 996 $ 996
    Payroll Taxes $ 16,073 $ 20,131 $ 0
    Merchant Account Fees $ 1,800 $ 2,000 $ 2,000
    Moving Expenses $ 2,300 $ 0 $ 0
    Redecorating New Location $ 3,000 $ 0 $ 0
    Total Operating Expenses $ 162,416 $ 188,444 $ 176,073
    Profit Before Interest and Taxes $ 25,549 $ 18,800 $ 41,533
    EBITDA $ 25,753 $ 19,020 $ 41,753
    Interest Expense $ 128 $ 0 $ 0
    Taxes Incurred $ 7,626 $ 5,640 $ 12,460
    Net Profit $ 17,795 $ 13,160 $ 29,073
    Net Profit/Sales 7.28% 4.93% 10.38%

    Profit Monthly

    The monthly profit we will reach will be able to sustain all our operations and will us enough dividends to invest in the future growth of the business.

    Hair Extensions Business Plan - Profit Monthly

    Profit Yearly

    As already mentioned, we might run into a loss for the first month of operations. Still, we expect to touch the profit baseline within three months of operations, and therefore, our yearly profits will be able to pay back all the credit.

    Hair Extensions Business Plan - Profit Yearly

    Gross Margin Monthly

    In the first few months, the margins will remain negative, but when the profitability picks up, we expect a solid margin baseline.

    Hair Extensions Business Plan - Gross Margin Monthly

    Gross Margin Yearly

    Yearly margins will be great and will make us able to expand our business and reach out to a larger customer base.

    Hair Extensions Business Plan - Gross Margin Yearly

    Projected Cash Flow

    In the initial months, we will be running on credit, but soon we will become cash-flow positive.

    Hair Extensions Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $ 244,438 $ 266,742 $ 280,079
    Subtotal Cash from Operations $ 244,438 $ 266,742 $ 280,079
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $ 0 $ 0 $ 0
    New Current Borrowing $ 4,000 $ 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 $ 248,438 $ 266,742 $ 280,079
    Expenditures 2004 2005 2006
    Expenditures from Operations
    Cash Spending $ 107,155 $ 134,208 $ 141,969
    Bill Payments $ 115,270 $ 121,706 $ 109,986
    Subtotal Spent on Operations $ 222,425 $ 255,915 $ 251,955
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $ 0 $ 0 $ 0
    Principal Repayment of Current Borrowing $ 4,000 $ 0 $ 0
    Other Liabilities Principal Repayment $ 600 $ 535 $ 0
    Long-term Liabilities Principal Repayment $ 0 $ 0 $ 0
    Purchase Other Current Assets $ 1,400 $ 0 $ 0
    Purchase Long-term Assets $ 0 $ 0 $ 0
    Dividends $ 0 $ 0 $ 0
    Subtotal Cash Spent $ 228,425 $ 256,450 $ 251,955
    Net Cash Flow $ 20,013 $ 10,292 $ 28,124
    Cash Balance $ 21,044 $ 31,337 $ 59,461

    Projected Balance Sheet

    Balance sheets will be outsourced but monitored. Management will make sure it will stay positive.

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $ 21,044 $ 31,337 $ 59,461
    Inventory $ 6,053 $ 6,377 $ 6,696
    Other Current Assets $ 3,075 $ 3,075 $ 3,075
    Total Current Assets $ 30,172 $ 40,789 $ 69,232
    Long-term Assets
    Long-term Assets $ 1,800 $ 1,800 $ 1,800
    Accumulated Depreciation $ 330 $ 550 $ 770
    Total Long-term Assets $ 1,470 $ 1,250 $ 1,030
    Total Assets $ 31,642 $ 42,039 $ 70,262
    Liabilities and Capital 2004 2005 2006
    Current Liabilities
    Accounts Payable $ 12,049 $ 9,820 $ 8,970
    Current Borrowing $ 0 $ 0 $ 0
    Other Current Liabilities $ 535 $ 0 $ 0
    Subtotal Current Liabilities $ 12,584 $ 9,820 $ 8,970
    Long-term Liabilities $ 0 $ 0 $ 0
    Total Liabilities $ 12,584 $ 9,820 $ 8,970
    Paid-in Capital $ 0 $ 0 $ 0
    Retained Earnings $ 1,264 $ 19,059 $ 32,219
    Earnings $ 17,795 $ 13,160 $ 29,073
    Total Capital $ 19,059 $ 32,219 $ 61,292
    Total Liabilities and Capital $ 31,642 $ 42,039 $ 70,262
    Net Worth $ 19,059 $ 32,219 $ 61,292

    Business Ratios

    The business rations have been calibrated to be perfect in the long term.

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY
    PROFILE
    Sales Growth 421.24% 9.12% 5.00% 0.43%
    Percent of Total Assets
    Inventory 19.13% 15.17% 9.53% 5.02%
    Other Current Assets 9.72% 7.31% 4.38% 40.05%
    Total Current Assets 95.35% 97.03% 98.53% 57.62%
    Long-term Assets 4.65% 2.97% 1.47% 42.38%
    Total Assets 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 39.77% 23.36% 12.77% 24.84%
    Long-term Liabilities 0.00% 0.00% 0.00% 21.36%
    Total Liabilities 39.77% 23.36% 12.77% 46.20%
    Net Worth 60.23% 76.64% 87.23% 53.80%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 76.90% 77.69% 77.69% 100.00%
    Selling, General & Administrative Expenses 52.01% 52.44% 52.44% 74.37%
    Advertising Expenses #NAME? 0.08% 0.08% 1.51%
    Profit Before Interest and Taxes 10.45% 7.05% 14.83% 3.37%
    Main Ratios
    Current 2.4 4.15 7.72 1.73
    Quick 1.92 3.5 6.97 1.33
    Total Debt to Total Assets 39.77% 23.36% 12.77% 58.00%
    Pre-tax Return on Net Worth 133.38% 58.35% 67.76% 7.63%
    Pre-tax Return on Assets 80.34% 44.72% 59.11% 18.17%
    Additional Ratios 2004 2005 2006
    Net Profit Margin 7.28% 4.93% 10.38% n.a
    Return on Equity 93.37% 40.85% 47.43% n.a
    Activity Ratios
    Inventory Turnover 12 9.57 9.56 n.a
    Accounts Payable Turnover 10.28 12.17 12.17 n.a
    Payment Days 28 33 31 n.a
    Total Asset Turnover 7.73 6.35 3.99 n.a
    Debt Ratios
    Debt to Net Worth 0.66 0.3 0.15 n.a
    Current Liab. to Liab. 1 1 1 n.a
    Liquidity Ratios
    Net Working Capital $ 17,589 $ 30,969 $ 60,262 n.a
    Interest Coverage 199.08 0 0 n.a
    Additional Ratios
    Assets to Sales 0.13 0.16 0.25 n.a
    Current Debt/Total Assets 40% 23% 13% n.a
    Acid Test 1.92 3.5 6.97 n.a
    Sales/Net Worth 12.83 8.28 4.57 n.a
    Dividend Payout 0 0 0 n.a

    Hair Extensions Business Plan Sample in PDF

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