• About
  • Coaching
  • Training
  • Shop
  • Blog
  • Contact
  • COVID-19 Support
  • Operation Clean Slate
Steve GomezSteve Gomez
Steve GomezSteve Gomez
  • About
  • Coaching
  • Training
  • Shop
  • Blog
  • Contact
  • COVID-19 Support
  • Operation Clean Slate
Important Budget Factors For Independent Stylists

Important Budget Factors For Independent Stylists

March 17, 2018

If you work for yourself in the beauty & wellness industry then you have to be responsible for every aspect of running your salon business. While that can be daunting, what must take precedence over most issues is the ability to create a budget, maintain it and review it. This will not only help make more money but serve as a guide to troubleshoot areas that may need improvement from a financial perspective. Therefore, it must be part of your salon business plan.

So what to track? Well, there’s plenty to focus on but here’s the key budget factors that must be tracked and reviewed to insure long term financial stability.

Top Line

Start with top line sales. Track service sales, retail sales, gift card sales and client count. From these numbers you can calculate average tickets as well as retail to service percentage. Your average service ticket will help gauge if you are effectively adding on additional, relevant services. Your average retail ticket and retail to service percentage will support you to see if you are retailing consistently.

What’s most important is that if you are not tracking top line sales you will not be able to track the variable expenses we are about to review. This is because your budget goals for your expenses are calculated by dividing the expense amount in dollars into specific or total sales in dollars.

Expenses

Retail inventory: If you sell your own retail products then you have to monitor your purchasing patterns to insure you do not over or under stock your shelves. Your retail inventory budget goal is 50%. To calculate your percentage divide monthly retail inventory purchases into total retail sales.

Back bar inventory: If you are purchasing your back bar products to perform your services then your inventory goal should be no less than 5% and no higher than 10%. To calculate your percentage divide back bar inventory purchases in service sales.

Credit card processing: If you manage credit card processing on your own, your goal is to keep it no higher than 2% of total sales. To calculate your percentage divide credit card processing fees into total sales.

Marketing: Set a budget each month to invest in growing your business. Your budget should be no less than 2% of total sales and no higher than 4%. To calculate your percentage divide marketing dollars spent into total sales.

Education: Investing in your own professional development should happen every month. Your budget should be between 2-5% of total sales. Calculate your percentage by dividing education dollars into total sales.

Hourly payroll: If you have an assistant or a front desk associate that supports you then it’s imperative that you have a budget goal to insure you pay and develop them. Your budget goal is 8% of total sales. To calculate this, divide hourly payroll into total sales.

Taxes: Working for yourself means you must be responsible to track and pay taxes on a quarterly basis. While you will have various expenses you can write off to reduce the amount of taxes you have to pay it’s prudent to set aside at least 20% of sales for tax time!

Retirement/IRA: Plan for your future by opening a savings account or stashing monies into an interest baring account like an IRA. Start with 10% of total sales as your minimum goal.

Profit: What’s left after you pay your bills? Profit! But wait, be sure you set a goal to pay yourself what you need to make each month to pay your bills. Then whatever is left is pure profit which you can use to chunk down debts, re-invest in more education or add to your savings account. A good goal here is to plan on having 10% set aside above and beyond monthly living expenses.

With planning, implementation and tracking you can create a budget that works for you, that helps you make more money and keep more of it too! Happy tracking!

For more information please contact me at info@stephengomez.net. You can also follow me on Instagram and Twitter: @saloncoachSJG

 

Share
0

You also might be interested in

6 Ways To Help Part Time Team Members Be Successful

6 Ways To Help Part Time Team Members Be Successful

Aug 28, 2019

Part time workers have full time values and goals! It[...]

Give Your Appointment Book A Boost This Summer

Give Your Appointment Book A Boost This Summer

Jul 27, 2018

Summer time can be a fun time for all of[...]

Take Your Power Back!

Take Your Power Back!

Oct 30, 2017

I actively coach 17 salons a month and it’s common[...]

Leave a Reply

Your email is safe with us.
Cancel Reply

Steve Gomez Business Coach

If you have any questions don’t hesitate to contact me!

  • 7820 Meridian St • Chino, CA 91708
  • 909-597-5369
  • info@stephengomez.net
Tweets by SalonCoachSJG
Join my friend Nikki Towbridge on Facebook live at Join my friend Nikki Towbridge on Facebook live at 10 am PST, 1 pm EST as we walk through your PPP questions and I update you on new templates and support steps to come back even stronger! We’re here to support you! #salonbusinesscoach #salon #salonowners #salonsolutions #spa #financialfitness #interdependentleadership #operationcleanslate #nikkitowbridge #thestatementsproject #lanza #lanzalove #hairbrained #salontoday #btc #modernsalon #makeadifference #stayhome #staysafeandelevate
Just over 12 hours to go and we will keep supporti Just over 12 hours to go and we will keep supporting our friends in Italy! Tune in in the @lanzaitalia page! Global crisis calling for perspective, ideation, strength and fight! Let’s do this Italia! #lanzahealinghaircare #salonbusinesscoach #lanzacodeofbusiness #fightcovid #salon #stuliat #salonlife #salonlove #salongrowth #profitfirst #liftuplife #catalyst #futurist
Get ready @lanzaitalia We go live on the L’ANZA Get ready @lanzaitalia We go live on the L’ANZA Italia Facebook page at 5 pm local time in Italy! 8 am my time! Let’s elevate! #salonbusinesscoach #salon #lanza #lanzaitalia #stylist #salonlove #salonlife #liftuplife #staysafeandelevate
Join me this Friday for a panel discussion with @s Join me this Friday for a panel discussion with @salonscale to support how we can continue to elevate and grow through this crisis. Link in my bio! #salonbusinesscoach #salonlife #salonscale #stylist #salonsupport #creativityincrisis  #staysafeandelevate
Join me next Monday for my next free webinar as I Join me next Monday for my next free webinar as I support our industry to build cultures that work with each other, cultures that elevate service and brand! Go to my Facebook page for the link: Stephen J Gomez #salonbusineascoach #salonowners #salon #culturefirst #interdependentleadership #fuckcovid #lovelife #love #service #elevate #educate
Please go to my Facebook page Stephen J Gomez and Please go to my Facebook page Stephen J Gomez and find this post. The meeting link is right in the post! I’m offering a free budget template for anyone who joins! Please share! Let’s help each other! #salonbusinesscoach #salon #stylist #salonlife #salonlove #liftuplife #covidsucks #beatcovid #elevate
Hi everyone! Please join me this Monday 3/23/20 at Hi everyone! Please join me this Monday 3/23/20 at 4:30 PM EST. I will be teaching financial philosophy from my book Financial Fitness as well as offering anyone who joins me a complimentary budget spreadsheet. Times are challenging and it’s critical that we redirect our energies into learning and growing. And the area of salon finance and budgets is often avoided in our industry which is why this is even more vital. I have 150 slots available. Hope to have you all with me. Spread the word! The link will be on my Facebook page: Stephen J Gomez #salonbusineascoach #salon #salonlife #salonlove #beatcovid19 #elevate #stylist #liftuplife #catalyst #futurist #speaker #educator
PLEASE EMAIL ME DIRECTLY FOR THIS at info@stepheng PLEASE EMAIL ME DIRECTLY FOR THIS at info@stephengomez.net
Use this how you need! Let’s all lead in our communities. #sanitize #cleansalons #salon #salonprofessionals #leadership #salonbusinesscoach #proactivenotreactive
Great place for a coaching session with my awesome Great place for a coaching session with my awesome client @unionbeautysalon in Brooklyn today! Rich coffee, yummy eats and excellent strategy. #salonbusinesscoach #salonlife #liftuplife #profitmovement #salon #brooklyn #auhtorlife #speakerlife
Honored to be a part of such a great weekend here Honored to be a part of such a great weekend here in Nashville at the B.I.G. Event with @lanzahaircare 1,500 passionate people up to great things! Thanks to those we met with and to these amazing Healing Artists we got to spend this morning with! You all are so very inspiring! Let go B.I.G! #salonbusinesscoach #salonlife #liftuplife #lanza #codeofbusiness #catalyst #futurist #author #speaker #speakerlife #makeadifference #lanzahaircare #bigevent2020 #nashville
The glamorous life of a business coach! Analysis l The glamorous life of a business coach! Analysis leads to facts which support better decision making as a leader! If you coach from the numbers you support people to look at the truth not opinions! Let’s keep elevating!#salonbusinesscoach #salon @salonlife #salonlove #speaker #author #catalyst #futurist #salonprofit #knowyournumbers
@20beautynancy @salonprofitguru and I are honored @20beautynancy @salonprofitguru and I are honored and excited to support our industry in a few weeks at @be_thebeautyexperience We teach one class a day to support creating profit and building your team! See you there! #salonbusinesscoach #bethebeautyexperienceny #financialfitness #interdependentleadership #recruiting #salonprofit #salon #salonowners #salonlife #liftuplife #stylist #author #speaker #speakerlife #catalyst #futurist
Manage your inventory and make more profit, have m Manage your inventory and make more profit, have more control and grow confidence! Let’s grow together! Join me and @salonscale for an important webinar this Monday! Link in bio! #salonbusinesscoach #financialfitness #salonscale #interdependentleadership #salon #salonlove #salonlife #salonprofit #saloninventory #prosperity #liftuplife #catalyst #futurist #author #speaker #speakerlife
I’m truly excited to partner with Alicia and her I’m truly excited to partner with Alicia and her team @salonscale this Monday to talk about how to manage inventory to create more profit! Alicia is a trial blazer and has created technology that can save you thousands of dollars a year. Imagine what that can mean in the long run! Join us Monday! Link in my bio! #salonbusinesscoach #financialfitness #salonscale #salon #salonlove #salonprofit #salonlife #profitmatters #catalyst #futurist #lovewhatyoudo #stylist #author #speaker #speakerlife
What a special day today was! To share the #lanzal What a special day today was! To share the #lanzalove with amazing salon owners from all over Italy. To support them to think differently and take different action to grow is an honor for me! They have so much passion to learn and it was infectious! Looking for to tomorrow! Grazie mille! @lanzahaircare @lanzaitalia #salonbusinesscoach #lanza #codeofbusiness #lanzalove #lovewhatyoudo #speaker #speakerlife #author #catalyst #salon #salonlove #salonlife #financialfitness #interdependentleadership
Travel! Go places. Learn new cultures and ways of Travel! Go places. Learn new cultures and ways of live. Immerse yourself in the past as a means of seeing the present. Love the creative road that you can only unlock by seeing this planet. Invest in yourself. #duomofirenze #santamariadelfiore #florence #italy #italia #wanderlust #grow #travel #salonbusinesscoach #catalyst #futurist #author #speaker #seeker #speakerlife #liftuplife
Follow on Instagram

© 2021 · Stephen Gomez · Terms & Conditions

Prev Next