Menu
Three Golden Rules for Managing Your Salon or Freelance Business Finances
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.
1. First up: cashflow is queen!
The most important thing in running any successful business is managing your cashflow. To put that simply: the money coming in from your clients and the money going out paying staff, suppliers and other bills. Is there enough of the first to pay for the second?
Understanding your cashflow will help you avoid financial bumps in the road. The best place to start is to list all of your monthly expenses and compare that to your estimated income each month. The money left over after paying all of your expenses can then roll over to give you breathing room for unexpected bills, invest in training, furniture or other supplies to expand your services, up your marketing game to attract more customers, or to pay yourself and your staff a cheeky Christmas bonus.
Knowing your income and outgoings will then let you see exactly what your budget is, how much profit you’re making and let you make solid financial decisions. Can I afford to hire a new stylist? Can I kit out the salon with new furniture? How much ‘cash at hand’ will I have after I replenish my supplies? You are now the master of your financial destiny!
2. You must have #goals
You didn’t start your own business to coast. Amongst other things, you did it to be financially independent and make good money. Money can’t buy you happiness, but it can buy you Louis Vuitton. So, setting yourself financial goals should be high on your agenda.
The first question: how much do you want to make? The income on your cashflow forecast should be the minimum expectation, i.e. how much do we need to achieve in order to pay the bills. Your goal should be the one you’re striving towards, the one that excites you, the one that will fill you full of pride when you breeze past it with a month to spare.
The next step is figuring out where those riches will come from. How many clients would you need based on your average price? What percentage of your time would that be? If it’s more time that you possibly have, how many staff will you need? Should you expand your services through training or hiring in staff with new specialities? Should you think about a second location? These are all questions you should ask and answer to give you a clear strategy to achieve your #goals.
3. Be disciplined and organised but don’t be afraid to take some risks
It’s no good having clear cashflow plans, budgets and revenue goals if you don’t pay attention to them. That’s why being disciplined and organised are important.
This means good record keeping. Of course, the easiest way to achieve this is to hire an accountant to look after your books. Depending on the nature of your business you could expect to pay around £50 to £150 a month for a good accountant to keep your books up to date, record expenses, file your VAT returns and do your annual accounts. This might be the best option if you’re a larger salon and have multiple people recording expenses against the business.
However, if you’re keen to manage things yourself to save money and be closer to the numbers, there are a vast number of software providers online at a fairly low cost that will make life easy for you. Here are some of our favourites:
• Best for using on the go: Zoho Books
• Best for larger businesses: Xero
• Best free option: Wave Apps
• Simplest to use: Quickbooks
With that said, we don’t mean you shouldn’t ever take risks. When an opportunity arises, do your due-diligence, weigh up the pros and cons, the risk versus reward. Having a good idea of your cashflow and understanding how the rewards fit in to your goals will mean you know better than anyone whether a risk is worth taking that could catapult your business forward. When the right opportunity presents, grab it!
Tag us on social @capitalhair if you have any finance-related queries (or any topic we can help with - let’s face it, the social media team are hoping it’s about hair, nails or beauty rather than finance but they can’t have it their way all of the time).
Freelance Focus
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.
Top trending
OFFER
VEGAN
Delivery
Collection
Please login to your account to check stock in your local store.
4 FOR THE PRICE OF 3
Delivery
Collection
Please login to your account to check stock in your local store.
VEGAN
Delivery
Collection
Please login to your account to check stock in your local store.
Delivery
Collection
Please login to your account to check stock in your local store.
OFFER
Delivery
Collection
Please login to your account to check stock in your local store.
SAVE 25%
Delivery
Collection
Please login to your account to check stock in your local store.
Delivery
Collection
Please login to your account to check stock in your local store.
OFFER
VEGAN
Delivery
Collection
Please login to your account to check stock in your local store.
BUY 3 FOR THE PRICE OF 2
Back to Posts
Tags
- acne
- advice
- allergy
- apps
- autumn
- awards
- balayage
- barbering
- beauty industry
- blonde
- braids
- bridal
- brows
- business
- capital & i
- career
- christmas
- client loyalty
- color wow
- covid-19
- curls
- eyelash
- facial
- fanola
- festive
- finance
- freelance
- gellux
- hair
- hair care
- hair colour
- hair salon
- hair styles
- hair styling
- hair trends
- hairdressing
- hairstyle
- hairstyles
- halloween
- healthy
- how to
- hygiene
- ideas
- indola
- industry
- inspiration
- interview
- k18
- lashes
- lockdown
- loreal
- macadamia
- make up
- makeup
- manicure
- marketing
- mens
- mental health
- microblading
- nail art
- nail industry
- nail inspiration
- nail technician
- nail trends
- nails
- new years
- nioxin
- nxt
- olaplex
- opi
- party
- pedicure
- ponytail
- products
- professional
- professionals
- pulp riot
- redken
- reopening
- retail
- reviews
- revlon
- salon
- salon finance
- salon furniture
- salon management
- salon owner
- salon refit
- salon services
- salon system
- salons
- schwarzkopf
- self care
- self-care
- self-employed
- skills
- skincare
- skincare regime
- skincare steps
- social
- social media
- spa
- spring
- step by step
- style
- styling
- stylist
- summer
- sun damage
- suncream
- sustainable
- tanning
- technique
- the manicure company
- tigi
- tiktok
- time to improve
- tips
- toner
- toning
- top knot
- training
- treatment
- trending products
- trends
- tutorial
- updo
- upskills
- valentines
- vegan
- vegan beauty
- veganuary
- wahl
- waxing
- wedding
- wella
- wellbeing
- wellness
- winter
- winter nails
Latest Posts
- Chantelle: Capital & Me, my self-employed journey & the importance of networking
- Meet Sophie, owner of ‘Sophie’s Lashes & Beauty’ which she has been running now for over 7 years!
- K18 Biomimetic Hair Science vs. Bond Builders
- K18 & Your Salon Services - How to incorporate K18 Services for Ultimate Hair Restoration
- What is K18 and how does it work?
- From Money Worries to Family Drama: What's Stressing Your Skin & Hair the Most?
- Something Old - Something New
- Skin Cycling 101
- Vegan and Cruelty-Free Hair and Beauty: Simple Swaps and Recommendations for Veganuary
- The Greatest Night in British Hairdressing!
Related Posts
Vegan and Cruelty-Free Hair and Beauty: Simple Swaps and Recommendations for Veganuary
The new year often brings a sense of renewal, self-improvement and positive change. For many, this means reducing the consumption of animal products and embracing a more compassionate lifestyle. As hair and beauty professionals, we can support and promote this growing movement by embracing vegan and cruelty-free options. However, transitioning to fully vegan products may initially seem daunting. This is why, in this post, we will explore some simple swaps you can try in January that are still highly effective and recommendations for vegan styling products and treatments to expand your offerings this Veganuary. We aim to make embracing ethical beauty approachable and attainable so you can focus on what matters most - caring for your clients with confidence and care.
Simple swaps this Veganuary
Start Small: It can be overwhelming to transition to fully vegan products overnight. One simple swap you can make is changing your hair brushes and combs to those made from natural materials such as bamboo (link to bamboo page) or wood. Not only are these products sustainable and eco-friendly, but they also help reduce static hair and promote healthy shine. Another easy swap for your salon or personal use is choosing cruelty-free and vegan nail polishes from brands like The Manicure Company. Ethically made and with an unwavering commitment to being a vegan and cruelty-free brand, Zero Gel Polish is widely available at our stores and comes in a vast array of colours. These small changes can make a big difference
The Greatest Night in British Hairdressing!
The greatest night in British hairdressing!
Come with us to the Wella Trend Vision Awards.
With more than 700 guests in attendance, the Wella Trend Vision Awards were a feast for the eyes. Taking place along the banks of the Thames River, overlooking the stunning London skyline, the night was all about celebrating the best in British hairdressing.
An annual competition, the Wella TVA preparation started earlier this year with an online photographic entry and culminated with this prestigious evening where some truly iconic and creative looks were on display. Hosted by the legendary hair-up maestro Patrick Cameron, alongside Fergal Doyle (you can see more from Fergal on page 28 where he shares his ultimate social media tips), the night was packed with creative showcases from the likes of Wella artists such as Cheynes, Cobella, Francesco Hair Salons, Hob Academy, Lara Johnson Lifestyle, Nikki Clifford from NJUK, Simon Tuckwell and Stil.
The true cost of beauty - 80% of Brits admit to spending £1200 on beauty treatments per year
We did some digging to reveal the true cost of beauty, and what we found may shock you! A whopping 80% of Brits admit to spending £1200 a year.
How does my home’s water impact my hair and scalp?
What effect does water have on your hair's health?
Skinician Q & A | Your Salon Facial Peel Questions Answered
Introducing Skinician. Skinican offer a range of professional treatments, facial peels and more...
How do Brits feel about “cheating” on their regular hair and beauty professional?
Discover the results of a new survey on UK consumer loyalty to hair and beauty professionals. Nearly 7 million admit feeling more guilty about 'cheating' on their hairdresser than a romantic partner.