Hair Salon

Executive Summary The purchase of Concepts Hair Salon is possible, scarce it is before long facing some fiscal challenges. agree to the provided financials, 2008 figures represent a weak year which may set about some financial issues for the beginning of 2009. The ending figures for 2008 resulted in a net harm due to having a negative on the job(p) capital and no bullion on hand. On the eternal rest sheet more than(prenominal)(prenominal) than 75 percent of the current assets are do up of account receivable and inventory balances. This may be an index number of over stocked items and high senescence 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 in any case needs to be great emphasis on assembly 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 redress present obligations 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 change the credibility for the company to slang for larger loans. One of superior 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 spinal column basic cost such as commissions, insurance, and other in operation(p) costs. A suggestion would be to mimic Tony DiMarcos strategy by using his suffer pers onal savings to cover any cash shortages unt! il more cash can be received. Another downfall for the company is currently not having an instruction technology system in place. Technology should be incorporated into the company to provide intermit analysis on demographics of returning(a) nodes, information on product profitability, tracking system for inventory, updated on demand sales report, in force(p) time slotting, and among other reusable tools. Currently each stave member maintains their own client list which...If you want to involve a full essay, set up it on our website: OrderCustomPaper.com

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