Business Plan Africa Investor-Ready Plans

Lumière Nail Bar Business Plan — Appendix B: Capital and Capacity Schedules

Fit-out, equipment and capacity schedules, depreciation lives, capital phasing and the treatment-hour build behind the plan.

Appendix B: Capital and Capacity Schedules

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B.1 Fit-out, equipment and depreciation lives
B.2 Capital phasing
B.3 Capacity and utilisation
B.4 Membership and the cumulative threshold
B.5 Contribution by line

B.1 Fit-out, equipment and depreciation lives

Item	Amount (R)	Life	Annual depreciation at full deployment (R)
Premises fit-out — reception, nail bar, rooms, wet area	1 680 000	7 years	240 000
Treatment beds, steamers, wax and equipment	560 000	8 years	70 000
Nail stations, chairs, lamps and extraction	380 000	8 years	47 500
Branding, signage and launch marketing	290 000	3 years	96 667
Solar and backup power	290 000	10 years	29 000
Retail fixtures and opening stock	260 000	6 years	43 333
Sterilisation, laundry and back of house	210 000	8 years	26 250
Booking, point of sale and membership system	140 000	4 years	35 000
Total fit-out, equipment and launch	3 810 000		587 750

B.2 Capital phasing

R	Year 1	Year 2	Year 3	Year 4	Year 5
Capital deployed in the year	3 104 000	395 000	13 000	298 000	0
Cumulative capital deployed	3 104 000	3 499 000	3 512 000	3 810 000	3 810 000
Depreciation charge	491 750	545 750	547 917	587 750	587 750
Net book value at year end	2 612 250	2 461 500	1 926 583	1 636 833	1 049 083

B.3 Capacity and utilisation

	Year 1	Year 2	Year 3	Year 4	Year 5
Nail stations	6	8	8	10	10
Treatment rooms	3	4	4	5	5
Sellable hours per station or room	3 020	3 020	3 020	3 020	3 020
Total sellable hours	27 180	36 240	36 240	45 300	45 300
Nail hours sold	7 973	13 530	15 221	20 234	21 140
Room hours sold	2 990	5 194	6 040	8 154	8 607
Total treatment hours	10 963	18 724	21 261	28 388	29 747
Blended utilisation	40.3%	51.7%	58.7%	62.7%	65.7%
Realised rate per treatment hour, R	321	321	322	322	323

B.4 Membership and the cumulative threshold

Membership base at maturity	Cumulative five-year profit after tax (R)	Assessment
0	(1 320 528)	Start-up losses not recovered
150	(553 507)	Start-up losses not recovered
256	(9 085)	Start-up losses not recovered
400	678 156	Start-up losses recovered
550	1 392 864	Start-up losses recovered
650	1 873 779	Start-up losses recovered
780	2 493 677	Start-up losses recovered
900	3 046 954	Start-up losses recovered

R	Year 1	Year 2	Year 3	Year 4	Year 5
Members	90	260	470	640	780
Fee revenue collected	745 200	2 152 800	3 891 600	5 299 200	6 458 400
Retained margin at 26%	194 000	560 000	1 012 000	1 378 000	1 679 000
Prepaid package value sold	318 182	781 818	1 309 091	1 718 182	2 009 091
Breakage recognised at 11%	35 000	86 000	144 000	189 000	221 000
Unredeemed value held as a liability	70 000	172 000	288 000	378 000	442 000

B.5 Contribution by line

R	Year 1	Year 2	Year 3	Year 4	Year 5
Treatment contribution at 52%	1 829 360	3 129 360	3 560 960	4 760 080	4 990 960
Ancillary contribution at 58%	122 380	209 380	238 380	318 420	334 080
Membership retained margin	194 000	560 000	1 012 000	1 378 000	1 679 000
Package breakage	35 000	86 000	144 000	189 000	221 000
Retail contribution at 44%	116 160	264 880	391 600	604 120	675 840
Total gross profit	1 407 000	3 308 000	4 242 000	6 212 000	6 789 000
Recurring share of contribution	16.3%	19.5%	27.3%	25.2%	28.0%

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