Lumière Nail Bar Business Plan — Key Performance Indicators
The utilisation, membership churn, average ticket and retail attachment indicators reported weekly, with targets for each.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Positioning
- 3. How a Salon Actually Makes Money
- 4. The Membership Programme
- 5. SWOT and Competitive Position
- 6. Operations and the Capacity Build
- 7. Compliance and Standards
- 8. Management and Team
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Capacity Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this business should be managed. Four of them — utilisation by station and by hour, membership joins and churn, retail attachment, and rebooking rate at departure — are reported weekly rather than monthly.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Utilisation by station and by hour of day |
Booked hours divided by sellable hours, measured per station and per hour |
70% nail, 57% room by Year 5 |
The single operating number that matters most. Capacity is fixed and the unsold hour is gone |
|
Membership joins and churn |
Members added and lost each month against the base |
780 by Year 5 |
The largest lever in the model. Below 258 members the business does not repay its start-up losses |
|
Retail attachment |
Retail revenue divided by treatment revenue |
16% by Year 5, or 15.1% against total service revenue |
A genuine profit line and a retention tool, but the smallest lever of the six tested |
|
Rebooking rate at departure |
Clients leaving with a next appointment divided by clients served |
Monitored weekly |
The leading indicator of every other number. A client who leaves without a next appointment must be won again |
|
Realised rate per treatment hour |
Treatment revenue divided by treatment hours |
About R312 |
Protects against discounting the menu to fill quiet hours |
|
Membership redemption rate |
Included treatments taken divided by treatments due |
High and rising |
Breakage is what is left over, not what is aimed at. High redemption produces retention and referral |
|
Revenue per station |
Revenue divided by nail stations plus treatment rooms |
R907333 by Year 5 |
The number to benchmark any second site against |
|
Deferred prepaid liability |
Unredeemed prepaid value held on the balance sheet |
Tracked monthly |
Prepaid vouchers remain valid for three years under the Consumer Protection Act. It is a liability before it is income |
|
Therapist retention |
Therapists retained over twelve months |
Tracked by role |
The client book is the asset and it is the thing most likely to walk out |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.30x from Year 2 |
No principal falls in Year 1 under the twelve-month moratorium |