Tips to Stay In Control of Hair Salon Finances
The strategy of financial development is an important component of the management of any enterprise — a beauty salon is no exception. A business without income is pointless. Therefore, the owner of a beauty salon should know what financial management is. Here are some basic points of it:
- Expenses not only have to be considered, but also planned. They are divided into conditionally variable and conditionally constant. The first include: payment for materials, work of specialists, the second – all the rest (costs of renting premises, utilities, household expenses, advertising, management, taxes, service costs, training).
- An important aspect is the calculation of the break-even point of the salon. Without finding out this indicator, you may face difficulties in conducting financial policy of your salon.
- Revenue and current expenses should be constantly monitored. Special attention should be paid to indicators that exceed the daily expenditure by more than 20%, and income by more than 30%.
- Checking the primary documentation can be entrusted to an accountant if it’s possible to hire such an employee. If you can’t afford such a specialist, do it yourself.