When business owners first go into business they are excited, eager, motivated and can’t wait to get started. Then reality sits in and the bills start piling up, followed by pressure, tension anxiety. If you are like most owners you are always looking for ways to cut expenses and generate more revenue so it’s worth it to be in business.
The main reason entrepreneurs go into business for themselves is to be their own boss, have more freedom, and make more money. But here is the sad fact: in most cases business owners don’t pay themselves, they end up working harder and make less money. According to US census statistic an average business makes about 7% net profit. Yes there are some businesses that make more, some less, and some make none. Where do you stand? Are your overhead expenses diminishing your bottom line? If so, read the first of this 4 part series to learn strategies on gaining financial health.
1. Have a Budget
Most spa and salon owners who call our office seeking business help don’t have a budget. Without a spa budget, you are allowing your business to manage you instead of you managing it. Whether you have a large, medium, small spa or are even a solo-preneur, you must have a budget. Your budget should include a monthly breakdown of all your finances, such as:
Number of spa clients you expect to see monthly
Forecasted service revenue
Forecasted retail revenue
Spa product cost
Compensation cost
Spa Operating cost
Spa Marketing expenses
Budgeted profit
The key is to detail the budget as much as possible so your revenue goals are clear and to be disciplined enough to not over spend.
Want to see how healthy your business is? Take a financial assessment to see where your business stands.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.