Hair Salon

Executive Summary The purchase of Concepts Hair Salon is possible, except it is before long facing some fiscal challenges. match to the provided financials, 2008 figures represent a weak year which may driving force some financial issues for the beginning of 2009. The ending figures for 2008 resulted in a net harm due to having a negative workings capital and no coin on hand. On the vestibular sense sheet more(prenominal)(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 agedness 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 similarly needs to be great emphasis on appeal 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 make o ut 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 alter the credibility for the company to slang for larger loans. One of sterling(prenominal) 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 make up basic cost such as commissions, insurance, and other working(a) costs. A suggestion would be to mimic Tony DiMarcos dodging by using his suffer personal savings to cover any cash shortages until more cash can be received. Another downfall for the company is current! ly not having an information technology system in place. Technology should be coordinated into the company to provide intermit analysis on demographics of return nodes, information on product profitability, tracking system for inventory, updated on demand sales report, in force(p) time slotting, and among other efficacious tools. Currently each stave member maintains their own client list which...If you want to involve a full essay, order of battle it on our website: OrderEssay.net

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