Executive Summary

I intend to open the hairdresser X in the X Street in Berlin. The opening of the Salon is scheduled for September 2010. The company is run in the form of a sole proprietorship.

The approx. 92 m² Salon is equipped with six operating and two washing areas. The Salon is open 64 hours a week, at the following times: Monday through Wednesday from 10-20 Thursday and Friday from 8-20 and Saturday from 10- 20.

With the salon, I follow an innovative concept, which impresses with modern ways of working, top-quality products and fast, high-quality services. At its core, the Salon wants to attract customers, who place value on high quality and excellent service. My target group are people, who take pride in their external appearance and a perfect hairdo and appreciate a top service with individual and specialized advice and feel comfortable in a modern, aesthetic environment.

To meet these demands, I employ first class staff that is professional, qualified and always performs at the highest level. The Salon will create a comfortable atmosphere with its modern décor and presentation. The goal is to become the "first address" for our target audience in Central Berlin.

To achieve customer loyalty, we will actively communicate our special range of services over the long term. We will attract new customers through various measures and retain existing customers, not only in the start-up phase, but permanently. In addition, we will cooperate with partner companies, which have similar target audiences.

Initially, I will be working with a full-time and a part-time employee.

My company will be profitable by the second year of business. Equity capital of € 24.000 will be covered with a planned profit (profit before tax) of approximately € 25.000 in the second year. During the third year, I want to achieve a profit of € 45.000 with additional employees and growing sales.

I want to make initial investments totalling € 66,500. Establishment of the salon is the largest item, with € 40,000. The founding fees are € 15,500. I need just under € 10,000 for the start-up phase and € 15,000 as a liquidity reserve. I have to pay a security deposit of € 5,000. Overall, I therefore have a capital requirement of about €110,000.

I would like to finance the investments and start-up costs with a bank loan of €80,000 and €2,000 equity capital. Liquidity reserves consist of a € 10.000 overdraft loan and € 5,000 in equity capital. I will finance the capital requirements for the start-up phase, myself. I also would like to cover the lease of € 5,000 by aval loan. Equity capital is about €17,000.