Little Scissors Financials

Information about Little Scissors Financials


This is a hypothetical income statement that assumes 3 full time employees costing $13.00/hr running the business 2880 hours/year. Each haircut is $13.00 and the operation averages seven haircuts per hour.

Haircut Revenue

Rent
Wages
insurance
Utilities
Licences fees taxes
Supplies/maintenance
Advertising/Marketing

Net income

$262,080.00

$12,000.00
$112,320.00
$2,500.00
$3,000.00
$9,000.00
$6,000.00
$5,000.00

$112,260.00

With extremely low overhead, the business could already see a profit and a positive cash flow in the first month. The children’s hair care industry is estimated at $5 billion and growing everyday. Little Scissors has the potential of providing its owner with consistent reoccurring revenue stream that is recession resistant. It is a very attractive business for entrepreneurs that also want a life outside of their business. It has normal business hours with few after hours responsibilities, no receivables,little inventory, no theft, and little maintenance.

In addition to haircuts, there are other avenues and opportunities to increase sales and profit within the Little Scissors operation. Hosting haircut/make-up birthday parties on the weekends at $20/head with 10 kids, 4 times/weekend would add another $40,000 revenue to the business. In addition to selling hair products, there could also be a market for toys and promotional items related to the business. Of course, taking the business to the next level by taking the concept and opening multiple stores and/or franchising it out to others in return for franchise setup fees and monthly franchise residuals, could make revenues and profits skyrocket over then next few years.

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