You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate.

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Opening an establishment described in terms of the economic challenge may seem profitable. By doing the calculations, one can conclude that the annual net profit of this business is about 16000 £, and the weekly revenue exceeds 500 £.

According to the terms of this task, the earning opportunity is entirely consistent with the requirements of a friend. Still, he does not consider several factors in the business’s success.

One of these could be the PR Company of such type of business. It is necessary to consider that attracting clients to the hairdresser services can be difficult and rely on the fact that customers will themselves know the location of the master.

That is why developing a publicity campaign and PR at your place of work is essential. Because there will be no clients at first, one needs to understand that the calculations are not correct, which already reduces the resulting profits.

Another equally important aspect that affects the profitability of a new business namely the customers, who may be impolite and often refuse the session. The human factor can be the most crucial and unpredictable in most types of businesses with a sociological base.

Working with people is always surprising, and even if that friend has accounted for the cost of repairing equipment, he needs to understand that the human factor can play a more significant role than fixing the damaged stuff.

Therefore, with a good reputation and customer base, it is advisable to take an advance payment for his work in the future. This may cause some dissatisfaction but will protect against unpleasant consequences, such as the non-appearance of a client for an appointment.

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Academic.Tips. (2023) 'You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate'. 30 May.

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Academic.Tips. (2023, May 30). You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate. https://academic.tips/question/you-have-a-friend-who-is-thinking-of-starting-up-a-hairdressing-business-from-home-he-can-charge-25-for-each-customer-visit-and-it-takes-about-half-an-hour-to-style-a-customers-hair-he-thi/

References

Academic.Tips. 2023. "You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate." May 30, 2023. https://academic.tips/question/you-have-a-friend-who-is-thinking-of-starting-up-a-hairdressing-business-from-home-he-can-charge-25-for-each-customer-visit-and-it-takes-about-half-an-hour-to-style-a-customers-hair-he-thi/.

1. Academic.Tips. "You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate." May 30, 2023. https://academic.tips/question/you-have-a-friend-who-is-thinking-of-starting-up-a-hairdressing-business-from-home-he-can-charge-25-for-each-customer-visit-and-it-takes-about-half-an-hour-to-style-a-customers-hair-he-thi/.

Bibliography

Academic.Tips. "You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate." May 30, 2023. https://academic.tips/question/you-have-a-friend-who-is-thinking-of-starting-up-a-hairdressing-business-from-home-he-can-charge-25-for-each-customer-visit-and-it-takes-about-half-an-hour-to-style-a-customers-hair-he-thi/.

Work Cited

"You have a friend who is thinking of starting up a hairdressing business from home. He can charge £25 for each customer visit, and it takes about half an hour to style a customer’s hair. He thinks that he can work for five hours a day, five days per week, fifty weeks a year. He has worked out that his consumable costs will be about £5 per customer, but he will have to lay out £9,000 on capital equipment, which he thinks will have a working life of about three years. He wants to make at least £200 a week and believes he should also be able to set aside another £100 as a contribution to repairing damages to carpets and fittings. He is very enthusiastic about his plan because he has a friend who has a similar business. She says that 70% of her takings are pure profit. Calculate your friend’s weekly break-even volume for three cases: Meeting costs, Making his required cash surplus, and Making his surplus plus a contribution to repairs. Determine what changes (if any) he would need to make to match his friend’s profitability rate." Academic.Tips, 30 May 2023, academic.tips/question/you-have-a-friend-who-is-thinking-of-starting-up-a-hairdressing-business-from-home-he-can-charge-25-for-each-customer-visit-and-it-takes-about-half-an-hour-to-style-a-customers-hair-he-thi/.

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