EssenceLabs Hair Studio Business Plan — Key Performance Indicators
The utilisation, ticket, retention and cost indicators monitored weekly, with the thresholds that trigger management action.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The Business
- 3. Market Analysis
- 4. Service Offering, Pricing and Yield
- 5. Operations
- 6. Marketing and Client Acquisition
- 7. People and Management
- 8. SWOT and Competitive Position
- 9. Financial Plan
- 10. Break-Even and Sensitivity
- 11. Risk Management
- 12. The Funding Proposition
- 13. Implementation Plan
- 14. Key Performance Indicators
- 15. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Debt Schedules
- C. Appendix C: Risk Register
- D. Appendix D: Assumption Register
- E. Appendix E: Glossary
The following are recorded weekly and reported monthly to the lender. Chair utilisation is the leading indicator for every other measure in the table, and it is available daily from the booking system at no cost.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Chair utilisation |
Chair-hours sold ÷ chair-hours available |
66% by Year 5 |
The binding constraint; breaks even at 49.1% at the Year 5 cost base |
|
Average ticket |
Service and retail revenue ÷ client visits |
R729 by Year 5 |
Escalates at roughly 6% a year; mix, not list price |
|
Contribution per chair-hour |
Revenue less product cost ÷ stylist hours |
Above R500 blended |
Ranks the menu correctly; the diary should be managed on it |
|
Rebooking rate |
Clients rebooking before leaving ÷ visits |
Above 55% |
The colour client rebooks on biology; the cut client must be asked |
|
Retail attachment |
Retail revenue ÷ service revenue |
17% by Year 5 |
Second revenue line at roughly 44% gross margin |
|
Payroll ratio |
Payroll ÷ revenue |
Below 43% |
The largest cost line; 42.6% at Year 3 |
|
Colour cost per service |
Colour product cost ÷ chemical services |
Falling 8 to 12% on weighing discipline |
Worth roughly R58k a year on the Year 3 book |
|
No-show rate |
No-shows ÷ booked appointments |
Below 6% |
A perishable inventory; an unsold hour cannot be recovered |
|
Debt service cover |
EBITDA ÷ interest and scheduled principal |
Above 1.25x from Year 4 |
The covenant that should be tested from Year 3 |
|
Facility headroom |
Undrawn ÷ facility limit |
Above 20% |
Peak draw is Year 4 |