Issue link: https://www.ahpindiestylist.com/i/1544743
Explore your benefits at ahphair.com 61 RISK ASSESSMENT In your risk assessment section, think about your strengths and what you're best at. Do you excel at customer service? Are you great at creating a welcoming and comfortable environment? You also want to list your weaknesses and biggest threats. Are you new to the field? Is the market where you offer services already saturated? (Hopefully you avoided this with your location planning.) List some opportunities for your business, such as ways to expand services offered or ideas for improving existing services. Another part of your risk assessment should be a contingency plan. What if something happens to you that makes it so you can't work? If you don't have employees, it's unlikely your business can continue to make money without your presence. It's important to put some thought into this because everyone gets sick; having a plan in place can help you financially if something unexpected happens. FINANCIAL ANALYSIS It's safe to say the financial analysis section is the least fun but maybe the most important. Try to do some calculations to predict your business's financial plan. How many days a week do you intend to be open? How many clients per day do you think you can see if you are fully booked? How many cancellations do you have on average per week? Of your weekly bookings, try to figure out percentages of services booked and how much you charge for them. For example, in an average week, maybe 30 percent of your bookings are for haircuts, 15 percent are for full color, and the rest are for highlights. Doing this kind of math can help you predict revenue. Initially, you likely won't be fully booked, so once you figure out the math as if you are, then you can multiply it by an estimate of how booked you believe you might be. Once you figure out your projected revenue, you need to calculate your operating expenses. How much is your monthly rent? How much are your supplies? Do you spend money for your booking site and credit card services? How much did you decide to budget on advertising per month? How much are your membership association dues? All these expenses are your operating expenses and need to be calculated. Once you know this figure, you can subtract it from your predicted revenue to determine your predicted net income. A long-term goal might be continuously growing your expertise and broadening the range of clients you serve. STOCKSY