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Economic environment Calculate the following: Startup costs – estimate the main

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Economic environment
Calculate the following:
Startup costs – estimate the main assets you will need to start your business
Cash – 1 year’s expenses $812,200
Inventory $5,000
Property and equipment $23,932
Estimate your first year’s profit $601,885 loss $4,000
Sales
Cost of goods sold (make sure it ties to inventory)
Gross profit
Selling expenses (check against your one year’s expenses)
General expenses (check against your one year’s expenses)
Check these numbers against common industry standards, and show your work.
Create a 5-year plan for
Startup
Operating
Capital
Projects
Make sure that your budgets and startup costs cover appropriate salaries and benefits for you and your employees.
Technological environment
Also, think about trends in the salon industry when thinking about the product life cycle. What is fashionable now? What are new technologies out there?
If you are a product, from where will you source three key ingredients or inputs? Will you go directly to the factory/farm or work with a distributor? Find the actual suppliers and estimate your cost per unit.
If you are a service, how will you manage the unique challenges (p. 239)? Estimate your costs to create this structure of management.
(In paragraph form)
Unique Challenges of Services Delivery:
Perishability
For perishability, our service, in the beginning, will not have as many customers as we want, but that’s where discounts come in and special promotions for first-time customers so it can increase their chances of coming back to our beauty salon and spa. Another thing is our services will be appointment-based.
Location constraints
Since we are located in the Castro, we are limited to only that location. It could be difficult for those who don’t live in the city because it could be too far, or parking could be challenging for those who come into our beauty salon and spa.
Scalability challenges and opportunities, Performance variability, Perceptions of quality
We will be training our employers out of work not to make it too difficult or time-consuming. Also, this will be cheaper, and each employee will be taught at first only specific services at a time, then over time increase the employees training with different benefits.
We will have a balance between perceptions of quality and scalability.
Customer and provider interaction
I will also attach my paper so you understand what is being calculated. All of my estimates for my business are on my paper. Thank you

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