Budgets: A Must Have

Updated: Feb 12, 2019

When I speak with a salon owner for the first time I always ask what they love about their business. A common answer is "I'm the boss". When I ask salon owners what frustrates them about their business I am often told " I am not making any money".

It can feel like you are carrying the weight of the world on your shoulders when you are running a business that isn't making any money or is drowning in the pool of debt.

Typically salons are opened by talented stylists who have a passion for their trade, a large clientel, and are "sick of raking in the dough for someone else". Unfortunately, it takes more than talent and a loyal following to successfully run a salon.

Running a salon profitably requires dedication, an entrepreneurial spirit, the ability to wear many hats (owner, manager, mentor, service provider, etc), an understanding of business, and a budget.

Do you have a budget? Many salon owners do not. They have no idea how much money is cominf in or being spent or how much money should be spent. Having a budget and tracking your spending will have a positive impact on your bottom line.

By creating a budget that incorporates benchmarks we are able to dramatically decrease spending and increase profits.

If you're a salon or spa owner who is tired of carrying the weight of the world on your shoulders, we have a solution. Our coaching package includes a budget and goal tracking template, along with providing you with all of the spending limits for best practice! The easiest way to increase your bottom line is to take a good look at how much money is coming into your business and how much money is going out. Then you'll quickly discover where you may be able to decrease expenses and get a clear picture of how much revenue the business needs to generate monthly to break even or profit.

Having this valuable tool is imperative to you financial success. When you see how much you should be spending on purchasing items for retail sale, you begin to implement systems for inventory control. When you see how much you should be spending on purchasing products for back bar, you may decide you need a price increase or notice you need to decrease your back bar purchases. When you see how much you are spending on payroll, you may need to make some changes to your employee schedules and/or adjust wages for future employees.

The Salon Skipper coaching package comes with a budet template and all the goals for best practice. Get your business on the right track today!

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