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1 Example P & L Statement for Booth Rental Business Year to Date 1/1/07 to 12/31/07 Rental Income: Chair Rental (6 chairs/4 $150/wk) $ 31,200 Treatment Room Rental $175/wk) $ 18,200 Total Rental Income $ 49,400 Credit card income from 5% $ 4,957 Retail Income: $ 13,750 Total Income: $ 68,107 Cost of Goods Sold: Supplies $ 3,700 Product cost retail $ 7,837 Credit Card merchant fees $ 2,100 Salaries $8/hr) $ 16,000 Total COGS $ 29,637 Gross Profit: $ 28,470 Expense: Advertising $ Bank Charges $ 125 Cleaning $ 800 Commissions $ 700 Donations $ Dues & Subscriptions $ 125 Education & Seminars $ Electric $ 3,225 Employee Health Benefit Business Contribution $ Equipment Rental $ Insurance $ 1,200 Interest $ 5,800 Professional Fees (Accounting, Legal & Consulting) $ 1,500 Miscellaneous $ 728 Office Supplies & Expense $ 1,550 Payroll Expenses $ Permits & Licenses $ 200 Postage $ 90 Printing $ 73 Rent $ 21,600 Repairs & Maintenance $ 769 Security $ Staff Meeting Expense (food, bonuses) $ Taxes $ 904 Telephone ($2,200 YP ads) $ 3,160 Travel Expense $ Water $ 2,350 Total Expense $ 74,536 Net Income (Profits) $ <6,429>

2 P & L STATEMENT FOR BOOTH RENTAL Rental Income: $ Service Expenses: Standard % Your % Your Dollars Salaries & commissions 19.75% $ IPS 0.00% $ NIPS 19.75% $ Rent or Lease 25.00% $ Supplies (chemicals, back bar, office) 6.48% $ Advertising & Promo (include phone book ad) 2.92% $ Taxes, licenses & fees 1.36% $ Depreciation 0.00% $ Utilities (lights, power, water) 7.00% $ Repairs & Maintenance 1.94% $ Insurance 1.48% $ Telephone 1.19% $ Interest & bank charges 9.91% $ Professional Fees (Accounting, Legal & Consulting) 1.85% $ Education, dues & travel 0.15% $ Fringe Benefits 0.00% $ Miscellaneous 0.90% $ Total Service Expenses 79.93% $ Net Service Profits 20.07% $ Retail Sales Business Average $12,388 $ Retail Sales as % of Service Sales 8.3% Retail Expenses: Rent $ Cost of Goods sold Retail only 58.73% $ Commissions 12.82% $ Retail Supplies 1.58% $ Retail Advertising and Promotion 3.55% $ Total Retail Expenses 76.68% $ Net Retail Profits 23.32% $ Important: Please Note the Following 1. If the renters book their own appointments do not include NIPS. 2. If you do not provide supplies do not include on your Cash Flow Statement. 3. If you do not give renters clients from your advertising do not include on your Cash Flow Statement.

3 Service Expense Worksheet Salaries and Commissions (Income Producing Staff) Service providers Assistants Managers/Owners Total IPS Nips (Non Income Producing Staff) Front desk Assistants Managers/Owners Total NIPS Rent, Lease or Mortgage Rent or lease Mortgage Bldg insurance and property taxes (if you own building) Total Rent, Lease or Mortgage Supplies Back Bar Cleaning (disinfectants, paper towels, toilet paper etc.) Reception area (coffee, tea, water, cups, snacks) Office (Paper, pens, tape, ink) Total Supplies Advertising & Promotion Graphic fees Postage and delivery Printing (business cards/brochures/mailers) Website Yellow page ad Newspaper ad or radio Online ads (i.e. Craig s list) Total Advertising & Promotion Taxes, Licenses & Fees Payroll (what you match) Business (operating tax) Local State Member ship fees (Chamber of Commerce) Total Taxes, Licenses & Fees

4 Utilities Gas/oil/propane Electric Water Sewer Security system Total Utilities Professional Fees: (Accounting, Legal & Consulting) Book keeper Computer Consultant Consulting or Coaching Legal Payroll services Total Professional Fees Repairs and Maintenance Building repairs Cleaning/Janitorial Computer repairs Mowing Snow Removal Septic Equipment repairs (chairs, stations etc.) Total Repairs & Maintenance Insurance Liability Workman s Comp Disability Fire and theft Total Insurance Telephone Business Office Cell Pager Total Telephone

5 Interest and Bank charges Bank fees Credit card interest Merchant and processing fees (Credit card machine) Business loan interest Late fees *Please note: Principal payments on loans go onto the Balance Sheet Total Interest and Bank Education, Travel & Dues Tickets to Seminars or Classes Air fare Parking Hotel Meals (at seminar, shows or business meeting) Entertainment Total Education, Travel & Dues Fringe Benefits Gifts to staff Automobile DMV Fuel Lease or loan Service and repair Health Insurance Retirement funds Total Fringe Benefits Miscellaneous Equipment rentals Magazines Total Miscellaneous Take your total for each category and transfer it onto your Cash Flow Statement

6 Booth Rental Business Rent Determination Service Expenses: Standard % Your % Your Dollars Salaries & commissions 19.75% 29.44% $ 16,000 IPS 0.00% 0.00% $ NIPS 19.75% 29.44% $ 16,000 Rent or Lease 25.00% 39.74% $ 21,600 Supplies (chemicals, back bar, office) 6.48% 9.66% $ 5,250 Advertising & Promo (include phone book ad) 2.92% 4.35% $ 2,363 Taxes, licenses & fees 1.36% 2.03% $ 1,104 Depreciation 0.00% N/A $ N/A Utilities (lights, power, water) 7.00% 10.26% $ 5,575 Repairs & Maintenance 1.94% 2.89% $ 1,569 Insurance 1.48% 2.21% $ 1,200 Telephone 1.19% 1.77% $ 960 Interest & bank charges 9.91% 10.90% $ 8,025 Accounting and legal 1.85% 2.76% $ 1,500 Education, dues & travel 0.15% 0.23% $ 125 Fringe Benefits 0.00% N/A $ N/A Miscellaneous 0.90% 1.34% $ 728 Total Service Expenses 79.93% % $ 65,999 Formula to Calculate Weekly Rental: Total Overhead 12 (months) = Monthly Monthly 4.3 (weeks/month) = Weekly Weekly # of Rental Stations/Rooms = Station Cost Weekly Rental x Profit Expected ( 20%) = Weekly Rental Example: (This Example Based on the Cash Flow Statement Above) $ 65, (months) = $5, (Monthly Cost) $5, (weeks/month) = $1, (Weekly Cost) $ 1, rental stations & rooms = $ (Station Cost) $ x 1.20 (20% profit) = $ (Weekly Rent) Booth Rent for this Business should be $192/week.