7.1. Funding needs and sources of funding / Financial section / Financial and Organizational Model of a Community Beauty Salon.

 

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Summary Content / Financial section

Constantine

Funding needs and sources of funding

Need for funding	Amount (without VAT)	Amount (with VAT)	Sources of funding	Amount
1	2	3	4	5
1. Company Creation - Summary	1840	-	1. Share capital	96389,25
1.1. Owner-related expenses* - general	268	-	2. Loans	-
1.1.1. Registration	198	-
1.1.2. Name reservation, etc.	70	-
1.2. Expenses related to the company's activities** - total	1572	-
1.2.1. Notary services	350	-
1.2.2. Permission to make the seal stamp	10	-
1.2.3. The seal	60	-
1.2.4. Forms, etc.	500	-
1.2.5. Hygienic passport	253	-
1.2.6. Business consulting	349	-
1.2.7. Preparation of official instructions	50	-
2. Fixed assets - total	-	16100
2.1. Computers (1 pc.)	-	2000
2.2. Printer (1 pc.)	-	400
2.3. TV (1 pc.)	-	1900
2.4. Coffeemachine (1 pc.)	-	1100
2.5. Safe (1 pc.)	-	910
2.6. Sofa (1 pc.)	-	790
2.7.  Hairdressing salon work furniture set (3 sets)	-	9000
3. Current assets - total	42069,55	50903,37
3.1. Material stocks	35598,55	43074,25
3.2. Other current assets - total	6471	7829,12
3.2.1. For production purposes***	5377	6505,38
3.2.1.1. Hair straighteners (3 pcs.)	200	241
3.2.1.2. Hair dryer (3 pcs.)	190	229,9
3.2.1.3. Hair curling irons (3 pcs.)	120	145,41
3.2.1.4. Curlers (3 pcs.)	190	229,9
3.2.1.5. Hair clippers (3 pcs.)	180	217,8

3.2.1.6. Accessories	40	48,4
3.2.1.7. Hair cosmetics (shampoo, conditioner, hair gel, hairspray, etc.)	2826	3419,46
3.2.1.8. Makeup cosmetics (mascara, powder, lipstick, etc.)	631	763,51
3.2.1.9. Work clothes for employees (8 pcs.)	400	484
3.2.1.10. Equipment cleaning products (disinfectants)	600	726
3.2.2. For administrative and general company purposes**	1094	1323,74
3.2.2.1. Stationery	180	217,8
3.2.2.2. Printer ink	90	108,9
3.2.2.3. Trash can (1 pc.)	20	24,2
3.2.2.4. Fire extinguisher MG-4 (1 pc.)	50	60,5
3.2.2.5. Toilet paper, napkins	65	78,65
3.2.2.6. First aid kit	30	36,3
3.2.2.6. Drinking water preparation apparatus (1 pc.)	320	387,2
3.2.2.7. Lamp (1 pc.)	30	36,3
3.2.2.8. Clothes rack	40	48,4
3.2.2.9. Wardrobe (1 pc.)	299	361,79
4. Emergency expenses** - total	2530	2637,8
4.1. Property insurance	350	-
4.2. Subscription (3 magazines)	180	217,8
4.3. Advertising	2000	2420
5.  Money	24908,08	-
General	96389,25		Iš viso	96389,25

Šioje lentelėje pateikiami duomenys apie tai, kiek įmonei „K.Korenevskio individuali imone“ reikės lėšų, kad galėtų pradėti savo veiklą. Išlaidos, susijusios su įmonės steigimu sudarys 1840 Lt. Įmonė nustatė ilgalaikio turto ribą, kuri sudaro 450 Lt. Paskaičiavus kiek ilgalaikio turto prireiks įmonės veiklai, susidarė 16100 Lt suma. Trumpalaikio turto išlaidos sudaro 50903,37 Lt. Tam, kad grožio salonas turėtų apsaugą savo turtui nuo įvairių vagysčių bei nelaimių, įmonė sudarė turo draudimą. Dar nepradėjusi savo veiklos, įmonė turi pasirūpinti potencialių klientų paieška, šiam tikslui įmonė pasirinko reklamos būdą. Šio projekto finansavimo šaltinis yra privatenes kapitalas, kuris sudarytas iš keturių investuotoju lesu, turinčių lygias teises įmonės filialai. Privatenes kapitalas sudaro 96389,25 Lt.

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Summary Content / Financial section

Constantine

7. Financial section / Financial and Organizational Model of a Community Beauty Salon.

 

Constantine

Summary Content

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7.1. Funding needs and sources of funding;
7.2. Cost forecast;
7.3. Profit-loss forecast;
7.4. VAT forecast;
7.5. Tax forecast;
7.6. Cash Flow forecast;
7.7. Projected balance.

Constantine

Summary Content

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6. Risks assessment / Financial and Organizational Model of a Community Beauty Salon.

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Business risk is the probability of potential losses compared to a planned outcome. Under risk, a company may lose some or all of its resources, fail to generate expected revenue, and incur additional expenses.

Potential risk factors:
 - Lack of experience in starting a business. Opening a beauty salon is the first step into the world of business for a business owners. Akcininkai yra kompetentingi bei patyrę vadybos srityje, tačiau gali nutikti taip, jog jiems pritrūks praktinių įgūdžių bei įžvalgumo susidūrus su atsiradusiais sunkumais išlaikant verslą. Patyrus pirmuosius nuostolius, akcininkams gali pritrūkti ryžto, tikėjimo bei drąsos tęsti tolimesnę įmonės veiklą. Šią riziką galima sumažinti sutelkus visų akcininkų turimas žinias bei patirtį.
 - Possibilities of influence of external factors. A company's operations are particularly dependent on its clients' income and the country's economic situation. The current economic crisis and its consequences—unemployment, tax increases, and economic downturn—are negatively impacting clients' incomes. People's incomes are limited, so they save and purchase only essential goods. Due to declining client income, a newly established company risks receiving less attention and lower profits. To mitigate this risk, the company will be forced to lower prices and increase advertising spending.
 - Reducing the number of potential users. The current emigration situation in the country also reduces the number of potential clients. Most emigrants are young people who use beauty salon services, so this factor is unfavorable for our company. Unfortunately, the company is unable to mitigate this risk, and in this situation, government intervention is necessary.
 - Decisions taken by the government. The government influences the adoption, implementation, amendment, and repeal of legal acts that companies must adhere to in their operations. It's possible that the government will change legal provisions to the detriment of the company, increasing profits, VAT, and other taxes, forcing the company to raise prices for services and corporate expenses. Unfortunately, the company will be unable to mitigate this risk and will be forced to adapt to the current situation.
 - Competition. Existing and new competitors entering the market can pose a significant threat by offering more attractive services, lowering prices, and attempting to lure customers away. To avoid being overshadowed, a company will also be forced to lower prices and invest heavily in advertising.

 If the company fails to establish itself in the beauty service market, we'll try opening a simple hair salon that will only offer man and woman of haircuts. We'll make it because the existing equipment and furniture are suitable for this type of business, and there won't be any need to lay off staff.

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5. Management / Financial and Organizational Model of a Community Beauty Salon.

 

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  The GrazuteRoom is the subsidiary private enterprise of K. Korenevskiy, directly managed by Konstantin Korenevskiy. K. Korenevskiy's subsidiary private company will employ six people: a director and his subordinate specialists—three hairdressers, a makeup artist, and an accountant. These employees will be responsible for developing the company's service policy and implementing its goals. Since the company is relatively new and small, the management team will consist of just one person, and services will be provided by four employees.

The organizational structure of the company's management is presented in Figure 5:

In Figure 2. Beauty salon management structure.

 Company Director Konstantin Korenevskiy has a management degree and four years of experience in beauty industry service management. He is responsible for the salon's key management functions, including managerial duties. His responsibilities include resolving key operational issues, troubleshooting any problems that arise, maintaining contact with the company's companions, managing employee performance, and overseeing the company's day-to-day operations.

 The director possesses excellent organizational skills, is proactive, and is an communicad public speaker. The accountant manages all company financial records, calculates employee payroll, prepares tax returns, and prepares performance reports. They hold a degree in accounting and have three years of experience in accounting. The accountant is honest, responsible, conscientious, patient, and reliable. Hairdressers care for hair, cutting, coloring, curling, and styling. A cosmetologist provides wellness treatments, defect removal, and relaxation. A makeup artist prepares models for competitions, fashion shows, castings, public events, and more.

 Our staff has mastered the hairdressing profession, invested considerable time in honing their skills through various advanced training courses, and has many years of experience. Hairdressers are interested in fashion trends and innovations, are outgoing, pleasant to talk to, attentive to detail, motivated, and have a pleasing appearance. 

Our cosmetologist has a medical degree and many years of experience in the beauty industry.  

Makeup artist  Our has completed Femina Bona makeup artist training, holds a Master's degree in Medicine, and has three years of experience. She is pleasant to talk to, responsible, attentive to detail, conscientious, and motivated. Shi highlighting the most beautiful facial features and concealing numerous imperfections, striving to bring out the individuality of each client. 

WEAKNESSES  Lack of media advertising;  Insufficient experience in business organization;  We offer a limited range of services. POSSIBILITIES  Development of activities by expanding the range of services, increasing the number of employees and expanding the company's production facilities;   Become a strong competitor;  Work successfully and profitably. THREATS  The emergence of new strong competitors is quite possible;  Market instability;   General economic decline;  Rising raw material prices. Reduction in potential consumers. STRENGTHS  All 4 elements of promotion applied;  The company employs experienced, highly qualified employees;  Pleasant service;  Modern corporate environment.

The SWOT analysis of K. Korenevskis's sole proprietorship, application 3.

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4. Marketing / Financial and Organizational Model of a Community Beauty Salon.

 

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We decided to open a beauty salon in sity Rietavas of Lithuania because, after researching our competitors and potential clients, we discovered that there was a sufficient market in the area for a new beauty salon that provided high-quality and affordable services. We found that our beauty salon's strongest competitor is Rietavas on Plunges Street, as it offers a wide range of products and utilizes all four promotional elements. Weaker competitors include Rietavas on Zemaitės and Laisvės Streets, as they offer a narrow range of services and utilize only three promotional elements: advertising, personal selling, and sales promotion. We also found that the monthly income of most Antakalnis residents ranges from €735 to €1,180, so the services we provide will be affordable for most clients. Therefore, beauty salons in Antakalnis do not have strong competitors, so our newly established modern company will attract a lot of attention from customers, as it will strive to outperform its competitors – it will implement all four elements of promotion, expand the range of beauty salon services and set prices for services that correspond to quality.

Competitor analysis

Nr.	Type of analysis
1.	Real address	Rietavas, Plunges str.	Rietavas, Zemaites str.	Laisvės str. 1
2.	Company size	Small	Small	Very small
3.	Range of services	Wide	Narrow	Narrow
4.	Prices	High	Middle	Middle
5.	Belonging	One	One	One
6.	Promotion elements:
	Advertising Personal selling Sales promotion methods Public relations	+ + + +	+ + + -	+ + + -
7.	Competitor assessment	Strong competitor	Weak competitor	Weak competitor

We will be applying the product foring concept because we will focus all our efforts on improving the quality of our services to achieve our goals. We will allocate a significant portion of our resources to various courses and seminars aimed at improving employee skills and motivation. We will also be applying this concept because demand for beauty salon services in Rietavas, Lithuania exceeds supply, and the quality of services provided by competitors is insufficient.

The company will provide services directly, as it does not hold inventory, so the services of wholesalers, retailers, or industrial distributors are not required. Clients will come to the beauty salon themselves, and close personal interaction between service provider and consumer will prevail.

Our salon's services will be priced using a cost-based pricing method. Because the salon is modern and uses the highest quality products and tools, our prices are reasonable.

We will apply the following pricing strategies:
1. Value-based pricing strategy: When setting prices, we will determine how our service compares of clients in terms of price and quality.
2. Skimming strategy – at the initial stage, when our beauty salon is just opening, we set a little price, which is rise as our market share expands.
3. The final price is a psychological pricing. Prices for services will be rounded.
4. Competitor-Based Pricing Strategy: We will evaluate the prices of similar products from competitors and set prices accordingly.

In today's highly competitive environment, advertising is essential for companies, as competitors' relatively similar services make it difficult to attract potential clients and retain existing ones. Our company, GrazuteRoom, will utilize all four elements of sponsorship: creating an attractive company image by advertising the beauty salon and its services in the press, promoting sales and maintaining public relations through the use of media outlets, and publishing detailed information about the company's activities on a dedicated website, where the company will provide specific information about the services provided, the cosmetics used, and any promotions it runs.

Advertising elements and measures

Nr.	Advestising elements	Adventising measures
1.	Advertising in a press	In the magazine "Constantine", advertising brochures in the magazine "GrazuteRoom", blogger Konstantin Korenevskiy and our the game dating portal.
2.	Sales promotion	The online store will offer customers the opportunity to participate in castings, shows, competitions, partfolio production, and discounts on services provided for various occasions.
3.	Personal selling	Advertising of service from competent specialists.
4.	Public relations	Our internet resurses  https://von-constantine-fr.blogspot.com/2025/07/constantine-1.html?m=1 Rietavas.htm

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