Hair Salon

Executive Summary The purchase of Concepts Hair Salon is possible, save it is before long facing some fiscal challenges. harmonize to the provided financials, 2008 figures represent a weak year which may arouse some financial issues for the beginning of 2009. The ending figures for 2008 resulted in a net harm due to having a negative working(a) capital and no hard currency on hand. On the ease sheet to a greater extent(prenominal)(prenominal) than 75 percent of the current assets are make up of account receivable and inventory balances. This may be an index number of over stocked items and high develop accounts receivable. There pass on need to be a system in move into to monitor the inventory level, and more pressure placed on employees to sell these products. There too needs to be great emphasis on show to reduce the accounts receivable account, and to profit cash. This is very important as at that place is currently not enough cash flow to see present obligat ions much(prenominal) as bank charges on over draft. This should be a high priority because not having enough cash give jeopardize the telephoners ability to make payments, and in worse case concern the credibility for the company to slang for larger loans. One of greatest obstacle the company lead be challenged with is financing.

Currently with no cash balance there will need to be some sort of unretentive term funding to entomb basic cost such as commissions, insurance, and other functional costs. A suggestion would be to mimic Tony DiMarcos scheme by using his suffer personal savings to cover any cash shortages until more cash can be received. Another d! ownfall for the company is currently not having an data technology system in place. Technology should be merged into the company to provide intermit analysis on demographics of locomote guests, information on product profitability, tracking system for inventory, updated on demand sales report, in force(p) time slotting, and among other efficacious tools. Currently each stave member maintains their own client list which...If you want to involve a full essay, recite it on our website: OrderCustomPaper.com

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