One of the many challenges beauty salon owners run into is managing their beauty salon finances. But what are the effective ways in which your hair salon can remain in the black and out of the red?
As a beauty salon owner it’s important that you adhere to a sound financial plan. Because you operate a small business, every dollar matters and it’s important you are smart with your finances. Here are some ways to avoid financial issues:
- Budget your spending: You should always be cognizant of where you are standing financially. This means you should always know how much money you need to make to turn a profit. A budget can be separated into four categories:
- Prospective income: This is how much you expect your hair salon to make any given month or quarter. It’s important to have this number because it sets the tone for your entire budget and allows you to see when you can and can’t spend money.
- Fixed expenses: These are expenses you know must be paid for every week or month. For instance, you know you’ll need to buy items such as shampoo or pay utilities.
- Variable expenses: These are expenses that are not constant, but that you may need to pay for suddenly. Replacing a broken chair or buying scissors are examples of variable expenses.
- Invest: When you spend money that your beauty salon has earned, try to allocate it to areas in which you’ll be investing as opposed to just spending. An expense can be categorized as either a current or long-term benefit. For instance, you may want to invest in more chairs so you can handle more customers at a time, or you may want to hire more stylists.
- Maintain records: You must keep track of all receipts and all the money you’ve made and have spent in regards to your business operations. If you’re not the one primarily in charge of keeping records, make sure that whoever’s job it is that they’re diligently going through the records either at the end of each day or week.
If you’re ever unsure about the future about your beauty salon finances, you can always contact AmeriMerchant and talk to us about small business funding. We’ve been working with beauty salons like yours for over a decade and would love to talk about the exciting financial opportunities available with us. Receiving financing with us is quick, simple and there is no obligation!
For more information, feel free to fill out the form on this page or call us at 1-800-267-3790.