Shelby McLeod

Location

Key Success Factors Awareness CampaignContinuous PromotionNumber of Customers

Decor

Swift Current Population

Competitors

Organization Structure General Manager/Owner Administrative Assistant Junior Instructor Senior Instructor

Promotion Awareness Campaign Social networking Word of mouth Grand Opening Guerilla marketing

Profitability Year Ended Sales 188, , , , ,256 Total Operating Expenses 198, , , , ,904 Net Income (10,048) 24,368 49,282 64,740 80,346

Breakeven Analysis

Sensitivity Analysis: Customers Customers/Month Total Owner Compensation Average Compensation Per Hour ,253 $19.41Bankrupt ,253 $19.41 Not economically feasible , $30.78Middle ground , $59.55Capacity=196 Base 625, $29.45Base Case

Final Considerations Number of CustomersPopulation SizeMarketing EffortsCompetition

Questions?

Total Capital Required CategoryCost Leasehold Improvements42,835 Electronics22,000 Furniture and Equipment8,094 Total$72,929 Category Bank Debt50,000 Equity20,000 Total Financing70,000 Debt To Equity Ratio71%

Owner Compensation Manager Salary 40,000 41,000 42,025 43,076 44,153 Dividends ,817 64,648 Total Owner Compensation 40,000 41,000 42,025 78, ,801 Average Hours Worked 2,500 2,000 Average Compensation/hour $16.00 $16.40 $21.01 $39.45 $54.40