The landscape of the hair and beauty industry is continually evolving, and more professionals are venturing into the world of freelancing. Understanding and effectively managing your finances is a key component of ensuring sustainable success. Here, we break down essential financial tips to set you on the right path in 2023.
Choosing Your Freelance Path
Starting your freelance journey can take various forms. Renting a chair or space within an existing salon remains a popular option. You might pay a fixed monthly fee for unlimited chair use, negotiate a daily rate, or agree upon a revenue split, such as 60/40 in your favor. These arrangements offer flexibility while building your client base.
If you prefer to be a mobile or home-based freelancer, you need to determine your desired monthly income. To calculate this, consider your monthly expenses, including:
WiFi
Utilities
Phone
Products
PPE Equipment
Retail Stock
Virtual Office/Assistant
Advertising
Insurance and Licenses
Accountancy Fees
Booking and Accountancy Apps
Travel Costs
Don't forget to include any setup costs, such as a travel kit for mobile work or furnishings for your home salon. Once you've estimated your monthly expenses, total them and multiply by 12. Add your desired annual salary and divide the sum by 12. This calculation yields the amount you need to earn each month.
With a clear monthly earnings goal, you can determine the number of clients to serve during your chosen working hours, helping you establish your final service rates.
Calculating Your Costs with Online Tools
Explore online calculators like calconic.com, which allow you to input expenses, including your desired salary, to calculate your pricing. Additionally, consider offering add-on treatments or services to maximize your time with each client, boosting your earning potential.
Periodic Pricing Review
Regularly review your pricing, primarily based on your costs. Have your expenses increased over the past year? If so, evaluate the reasons behind these changes and consider passing them on to your clients. Additionally, keep an eye on inflation; many businesses increment their prices by approximately 10% each year to accommodate this, so don't hesitate to follow suit.
Maintain an organized record of your monthly expenses using spreadsheets or accounting apps, and update them each month to stay on top of any adjustments.
Managing Your Finances
While it's essential to set financial goals and cashflow plans, never neglect the day-to-day handling of your expenses and taxes.
To streamline your finances, you have several options:
Accountant: Hiring an accountant for a monthly fee is an efficient choice. They handle tasks like VAT returns and Self-Assessments, ensuring compliance with tax regulations.
Online Software: Utilize online accounting software like QuickBooks, offering straightforward packages from as little as £6 per month. It simplifies the financial management process. You can record expenses, issue invoices, and manage your books efficiently.
Hybrid Approach: Manage your day-to-day expenses and invoicing through accounting software like QuickBooks, and when it's time for tax returns, consult with an accountant for guidance.
Consider alternative accounting apps like Xero, which provides desktop and mobile apps to record expenses in real-time, making the Self-Assessment process less daunting.
Stay on top of your financial well-being and continue your journey towards freelancing success. For more tips and insights, explore our blogs on the Freelancer Focus web page or download our comprehensive Freelance Focus Guide.
There are so many reasons for you to consider going freelance but what does it really entail when it comes to the paperwork side of things? Here we share our top tips to get you started.
Pricing is probably one of the most talked-about issues when it comes to reopening post-lockdown. It’s so easy to feel anxious about how your clients might accept a price increase.
We caught up with some of the best in the business in our latest blog, to find out how you can stay ahead now that the hair & beauty industry is open again.
At Capital we consider ourselves partners in your business and that doesn’t stop at delivering you hair and beauty supplies. Helping you grow your business is high on our agenda, so for our latest instalment of our ‘Time to Improve’ series we’ve compiled a list of the 8 best ways to attract new clients to your salon or your freelance hair, nails or beauty business.
For the latest instalment of our ‘Time to Improve’ series, we thought we’d look at the ways you can really get to grips with your businesses finances, streamline the amount of time you’re spending managing them and the options available when you’re looking to grow your business. So, whether you’re a salon owner, a freelancer or own a mobile business, these 3 golden rules may help you spend less time worrying about bills and more time focusing on the things that really matter - hair, nails and beauty, obviously.
Freelance Focus, is a one stop resource for anyone working as a freelancer or thinking of going freelance in the hair & beauty industry, which includes a FREE downloadable guide filled with advice, useful insights, experiences and tips (from experienced freelancers) to help you understand the steps needed to make the right choices for you.
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This privacy policy sets out how Capital Hair and Beauty Ltd (CHB) uses and
protects any information that you provide when using the
capitalhairandbeauty.co.uk website or otherwise provide CHB with your
personal information.
CHB is committed to protecting your privacy. If we ask you to provide
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you can be assured that it will only be used in accordance with this
privacy policy. We treat all your personal information as fully
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consent unless legally required to do so.
By providing us with your personal information, you agree and consent to
its transfer, processing, use and disclosure as outlined in this privacy
policy. This policy does not apply to data you place on any publicly
accessible page. For example, when you submit a product review.
CHB may change this policy by updating this page. You should check this
page from time to time to ensure you are happy with the changes. This
policy is effective from 21st May 2018.
What personal data will be processed?
When you shop on this site or in one of our stores, personal information such as your name, email
address, phone number, invoice/delivery addresses, type of business and, where applicable the IP address used
to connect your computer to the internet are collected by us. This data
enables us to process and fulfil your order or transaction. We also ask for your mobile
number, which helps us (and courier companies working on our behalf) to
contact you if there’s a problem with your order.
Other information we collect
We may collect technical information regarding the type of electronic
device used, such as the make and model, operating system, internet browser
and also which pages of the site are visited and for how long. This is
statistical data about our users' browsing behaviour and does not identify
you personally. Debit/credit card details are entered on secure pages
hosted by our payment service providers, whether this be Secure Trading or
PayPal, this data is stored securely on their servers, we do not have
access to this. Where card details are given for payment processing over the phone, we do not record or store these details.
We also use CCTV in our stores for the security of our employees and customers.
How will we process data?
Personal data collected is used in the processing and delivering of orders.
Names, email addresses, mobile numbers, postal addresses and business type
may also be used to send you marketing communications (if you have opted in
to receive them). You can opt out of these at any time by visiting ‘my
preferences’ in your online account.
Browsing behaviour data is collected and analysed to see how well our
website is performing on a variety of electronic devices and internet
browsers.
We also use this data for remarketing in conjunction with Google, which
allows us to display adverts to you on third party websites after you have
visited our website. To opt out of this please visit Google’s ad settings.
Who will process data?
Personal data is stored on secure servers, separate to the website server.
We may share this information with third party service providers employed
by us to perform functions on our behalf, such as courier companies
delivering orders, mailing companies sending postal mail, email service
providers sending emails and texts (SMS) and payment service providers
processing payments. PayPal transactions are subject to the PayPal privacy
policy.
We may also share certain data including email addresses (if you are opted
in to receive emails from us) with third party social media platforms in
order to show you targeted ads when you visit them. Third parties such as
Google use cookies to store browsing behaviour data, which enables us to
use their remarketing services. Please refer to our cookie policy for more
information.
Why are we processing data?
We require this information to provide you with a service (processing
orders), it also helps us to ensure that content on our sites is presented
in the best way for you and the electronic device used to access the
content. To send you information regarding our products or services (if
requested by you), protect you and us against fraud and to notify you about
changes to our service.
When will data be processed?
This data will be processed when your order is picked, packed and
dispatched by our distribution centre, or if you enter a competition or
free prize draw. It will also be used every time we send a marketing
communication, if you have opted in and the communication is deemed by us
to be relevant to you.
Any user specific browsing data will be retained for 26 months after you
last visited our site, after which time it will be deleted.
Unsubscribing from marketing communications
To unsubscribe from marketing communications please visit the ‘my account’
section of your online account and select ‘my details and preferences’. You
can then change your opt in preferences for email, text and post.
Alternatively simply click on the unsubscribe links that are sent out with
each email/text or get in contact with us.
Right to access your data
You have the right to request a copy of the data we hold about you, or to
have your data erased in certain circumstances. Please contact us if you’d
like to request this. Please note that depending on your interactions with
us, some data may need to be retained due to legal requirements.
This policy was last updated on 23rd May 2018
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