Chic Angels Case

Launching Chic Angels Hair and Beauty Boutique, a unique beauty destination for girls aged 6-17, requires a thorough evaluation of financial feasibility to ensure its success and sustainability. This process involves analyzing the potential costs, revenues, and financial risks associated with starting and operating the salon. We will discuss the components of a financial feasibility assessment, the benefits of a financial feasibility assessment, and assessing potential financial risks We will identify and compare funding sources including crowdfunding to determine the sources that are useful for Chic Angels. Understanding these financial aspects is crucial for making informed decisions, securing the necessary funding, and planning for sustainable …show more content…
Entrepreneurs can make informed decisions regarding the viability of their business idea and determine if the business concept needs modifying or to be abandoned when they understand the financial necessities and probability of the business through a financial feasibility study. It is important for a business to identify, evaluate, and reduce threats as early as possible to survive. Therefore, for the long-term success and sustainability of Chic Angels, it is imperative that a risk analysis is conducted prior to opening the salon. To launch effectively and to grow progressively, Chic Angels must have a resilient business model, make informed decisions, and build confidence in stakeholders. It is more likely that an aspiring entrepreneur will be granted funding from investors and lenders when they have a financial feasibility assessment that shows the business concept has been analyzed and has sustainability (Investopedia, 2024). Conducting a financial feasibility assessment is an essential factor in business planning …show more content…
While bootstrapping allows for total control of the business, its limitations are dictated by the resources of the owner (Uzialko, 2024). With this method, Chic Angels would be funded by using personal savings, obtaining donations from family and friends, and reinvesting its profits back into the business. With debt financing, the owner does not lose ownership of their business but must make regular interest-bearing repayments if the business makes a profit or not Utilizing this model, Chic Angels would be able to establish business lines of credit, seek traditional bank loans, or SBA loans. Equity financing entails having diluted ownership and control over the business owner, although it brings weighty funding and potential expertise (Uzialko, 2024). This is not a method we would explore for funding because we are not willing to give up any control of the business. However, if we had to, angel investors, venture capitalists, and equity crowdfunding would be the options we would assess as a last recourse. Crowdfunding allows the raising of funds through a collective effort of an audience willing to support a business idea, often in exchange for rewards or recognition. There are crowdfunding platforms that enable you to create

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Chic Angels Case

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