LIMITED CORP
 
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RISK ANALYSIS

 

There are risks in every business and this too is not an exception. Hence it is very important to identify and assess factors that may jeopardize the success of the project. It will help us to define preventive measures to reduce the probability of these factors from occurring and identify countermeasures to successfully deal with these constraints when they develop to avert possible negative effects on the competitiveness of the company.

Risk Evaluation

In South Beauty Supply Store we evaluate the following risks

  1. Lack of products in demand with the distributor in the locality.
  2. Slower than expected adoption
  3. Operational and Staffing Risks
  4. Availability of finance at the right time

Risk Management Plan

We have full effective plans to manage the risks in our beauty supply store business. We have checked out the stock positions available with distributors and will place next orders in advance. To raise awareness about the store advertising will be used. Operations and staffing problems will be not a problems as qualified persons will look after it and we plan to keep reserve funds for the project and these will definitely make project a success.

Below is a chart that shows our Income Statement:
 
INCOME STATEMENT 2008 2009 2010 2011 2012 2013
             
Income
3,294,939.33
8,904,327.46
15,455,615.67
21,590,503.76
30,367,794.24
Cost of sold products
2,217,350.75
5,999,004.39
10,417,504.27
14,555,067.66
20,471,977.07
EBITDA
1,077,588.57
2,905,323.07
5,038,111.39
7,035,436.10
9,895,817.17
Advertisting
30,000.00
25,000.00
25,000.00
25,000.00
25,000.00
Credit card fee per year
6,589.88
17,808.65
30,911.23
43,181.01
60,735.59
Rent
100,000.00
200,000.00
275,000.00
275,000.00
275,000.00
Salaries
335,000.00
465,000.00
465,000.00
465,000.00
465,000.00
Government Taxes
51,538.46
71,538.46
71,538.46
71,538.46
71,538.46
Insurance yearly
5,000.00
8,000.00
10,000.00
10,000.00
10,000.00
Utilities
33,000.00
69,000.00
96,000.00
96,000.00
96,000.00
Insurance Monthly
50,000.00
52,500.00
55,125.00
57,882.00
60,775.00
Depretiation
7,425.00
17,325.00
29,700.00
34,650.00
39,600.00
Amortizations
5,800.00
11,800.00
18,200.00
18,200.00
18,200.00
Interest
150,000.00
127,752.67
102,168.23
72,746.14
38,910.72
Total
774,353.34
1,065,724.78
1,178,642.93
1,169,197.61
1,160,759.77
EBIT
303,235.23
1,839,598.29
3,859,468.47
5,866,238.50
8,735,057.39
Income taxes
90,970.57
551,879.49
1,157,840.54
1,759,871.55
2,620,517.22
NET INCOME
212,264.66
1,287,718.80
2,701,627.93
4,106,366.95
6,114,540.18
Legal Reserve
15,161.76
91,979.91
192,973.42
293,311.92
436,752.87
Retained Earnigs
197,102.90
1,195,738.89
2,508,654.50
3,813,055.02
5,677,787.31
             
             
             
INCOME TAXES RATE 30%          
Legal Reserve 5%          

Copyright © 2008. Limited Corp.