Proj 592 Cp1
Contents
Executive Summary 3
Project Description 3
WBS 3
Cost Estimate 5
Advanced Estimating Technique 7
Cost Assumptions 7
Financial Analysis 8
Schedule 8
Executive Summary
Our intention is to open an all-inclusive beauty salon in Athens, OH. Athens, OH is located 1 hour away from Columbus, OH. Its largest employer is Ohio University although it is home to Wal-Mart, Lowes, and many other smaller businesses. Currently there is a lack of professional services related to beauty. For the most part if these services are needed, clients are forced to drive 1 hour to take advantage of them. Our idea is to open an all-inclusive beauty salon which caters to all ethnic groups within six months. We also plan to sell various salon and personal care products. We have decided to purchase a franchise from John C. Williams Services. This Beauty service supplier is well known all over the United States and we as though it will bring us instant brand recognition. There is a local Cosmetology college within Athens and there is multiple in Columbus, OH. We believe the proximity will help us to further build our reputation and grow our market. As you can see from our Financial Analysis, we do lose money in the first year ($24,031). This is mainly due to our initial investment costs including the $40,000 franchising fee. Our analysis shows that we will make a profit every year after that. Our Net present value is &68,451.14 using the 2013 discount rate of -1.4%. We will be the first of its kind in this area and we believe if you invest with us now, we will bring profits well into the future.
Project Description The project that I am interested in starting is a hair salon that provides a one stop shop for all of your beauty needs. We will provide advanced hair stylists, nail technicians, makeup artists and a barber. As it stands now, this area is lacking a type of business such as this and currently out target consumers are driving an hour away to
Executive Summary 3
Project Description 3
WBS 3
Cost Estimate 5
Advanced Estimating Technique 7
Cost Assumptions 7
Financial Analysis 8
Schedule 8
Executive Summary
Our intention is to open an all-inclusive beauty salon in Athens, OH. Athens, OH is located 1 hour away from Columbus, OH. Its largest employer is Ohio University although it is home to Wal-Mart, Lowes, and many other smaller businesses. Currently there is a lack of professional services related to beauty. For the most part if these services are needed, clients are forced to drive 1 hour to take advantage of them. Our idea is to open an all-inclusive beauty salon which caters to all ethnic groups within six months. We also plan to sell various salon and personal care products. We have decided to purchase a franchise from John C. Williams Services. This Beauty service supplier is well known all over the United States and we as though it will bring us instant brand recognition. There is a local Cosmetology college within Athens and there is multiple in Columbus, OH. We believe the proximity will help us to further build our reputation and grow our market. As you can see from our Financial Analysis, we do lose money in the first year ($24,031). This is mainly due to our initial investment costs including the $40,000 franchising fee. Our analysis shows that we will make a profit every year after that. Our Net present value is &68,451.14 using the 2013 discount rate of -1.4%. We will be the first of its kind in this area and we believe if you invest with us now, we will bring profits well into the future.
Project Description The project that I am interested in starting is a hair salon that provides a one stop shop for all of your beauty needs. We will provide advanced hair stylists, nail technicians, makeup artists and a barber. As it stands now, this area is lacking a type of business such as this and currently out target consumers are driving an hour away to