Unit 3 – Business mathematics
Belinda Hackworth
American InterContinental University

Abstract
My business that I will be opening is a hair salon. This essay will explain the expenses and revenue of my salon. I will show how this business will prove to be successful and promising to anyone who reads.

Introduction
I’ve always dreamed of starting a business. As a former cosmetologist, I’ve always had a passion for hair and beauty. I’ve also had an online store selling jewelry for a few years. So, I know my way around a salon and I know how to market a business. Now that I’m a student of business, I think that I’m capable of starting a hair salon. This choice of business was my first choice because I feel comfortable in my efforts of having a salon. I am familiar with the operations of a salon, and with maintaining the required inventory. That being said, the public will always find a need for a salon, and the trade of cosmetology will be a useful one for years to come. I think that opening a salon is a very smart business move.

Revenue and Profits My projected sales for year #1 are $50,000 at the minimum. My expenses will total around $10,000. The expenses will include products for salon services, insurance on the building, and equipment for the salon. Around 10% of my sales revenue will be consumed by expenses. The remaining 90% will be profits.

Product Price and Cost
Haircuts will be sold at $20. Hair color services will range from $40 to $100. Hair styling services will be valued anywhere from $20 to $50. Hair washes and sets will be sold starting at $10 and increasing depending on thickness and length. Chemical treatments will be valued at $35 and increase depending on thickness and length.

Investment Requirements
The salon will open a business account with the bank that offers the best options for a small business, such as lending