FINANCES

The salon's budget

Complete Guide to Hair Salon
Budget Plan
• Whether you’re starting a new hair salon or trying
to determine your salon’s monthly expenses for the
coming year, having a hair salon budget plan is
essential.
• Having a financial plan prepared will help you keep
control over your business and prevent unexpected
problems from catching you by surprise.
 The best budgets are more than just a solid financial plan
- they’re a breakdown of how you’ll spend, save or invest
every money that you make this year helping you to get the
most out of your money.
This is helpful because it lets you:
• Forecast your monthly and annual earnings
• Anticipate your expenditures
• Plan any savings and financial investments for your salon
business
• Set aside controllable amounts for unexpected costs
• Review your progress and make adjustments when needed
• A salon's owner should review the financial plan on at
least a monthly basis, keeping track of the money going
in and out and adjusting the model if they decide that it’s
time to run things differently.

• Budgets are dynamic and can change with every new

analysis if need be. The point is to make a plan,
understand how it will work, and stay on top of each
expense.
How to Calculate Your Salon
Budget?
• 1. Determine Your Revenue
• 2. List Your Regular Fixed Costs
• 3. Account for Variable and One-Off Costs
KEEPING RECORD
• 4. Estimate Your Profit and Loss
• 5. Forecast Your Cash Flow
Importance of bookkeeping in a
Salon and spa business
• 1. Record sales ledger:You should record all money
entering the business including your payments
received from clients, beauty products sold,
payments received at exhibitions and any rent
money from salon space rented out.
• 2. Record purchase Ledger: Keeping an eye on your
expenditure is essential in understanding your
business. Track your outgoings and ensure you keep
all your receipts and invoices.
• 3. Dept: If you have loans or credit cards, you’ll need to
keep a record of the balances, new purchases, and
payments you make to the lenders. Keep your credit card
statements and receipts as evidence.
• 4.Excel Spread sheets: Small businesses with few
employees probably won’t need to use advanced payroll
accounting services and might opt for a spread sheet
instead. You can group expenses into categories.
• 5. Booking software: Using bookkeeping software may save
time. You’ll be able to monitor sales and expenses more
efficiently.
• 6. Tax return:The main form asks for details about
your sales income, savings, investments and
pensions, and is used to calculate how much tax
you owe or are owed by the government.
• 7. Stay current: If you want your salon to be
successful, be sure to stay disciplined with your
bookkeeping system. Establish a weekly routine of
documenting all earnings and charges on a
particular day, turning it into an addiction that
you’ll stay with for years to come. Don’t let months
pass by without tracking expenses.
MONITORING PROFITS
How to improve profit & make
more money in your salon
• 1. Grow your client base. You need to get more clients into
your salon and keep them. The cost of acquiring new clients
is high, and you will likely need to focus your attention on
marketing or special offers to get new faces through your
doors.
• 2. Increase the amount of money your clients spend per
visit. Along with increasing the number of clients you have on
your books, the next best way to improve your salon profit is
to increase the amount of money your existing clients spend
per visit. It’s well known that your most loyal clients are more
likely to spend more with you. So again, building a
relationship with everyone who visits your salon is vital.
• 3. Encourage your clients to visit your salon more often.
Just as you want to get as many repeat clients as possible,
you also want to maximise the number of times they come
to your salon. The more they return to you, the more profit
your salon will make. There are a few simple ways to start
doing this.
• 4. Reduce your salon overheads.The other points we
mentioned are about attaining more revenue to add to
your profit. But, equally important is to trim away anything
that is eating too far into your profit margin.
• 5. Utilising social media. It is essential to make sure your
salon business/work is getting in front of as many people as
possible.
SUPPLIES AND
EQUIPMENT
• Reception Area Essentials. Before you can get clients in your salon, they need to
know that you’re open! Your hair salon equipment list starts before your clients
even walk in the door. You’ll want to get started with an awesome logo and
professional signage.

EVERYTHING YOU NEED FOR A SALON RECEPTION AREA

• Outdoor Signs
• Hours Signage
• Welcome Mat
• Reception Desk
• Reception Seating & Furniture
• Retail Product Display
• Magazine Rack
• POS System/Cash Register
• Appointment Book/Scheduling Software
• Telephone
• Business Cards
• Lighting
NECESSITIES DURING SERVICE
• The salon styling chairs
• Salonstyling station
• Shampoo area
• Pedicures
• Facial
ESSENTIAL FURNITURE & EQUIPMENT FOR A HAIR SALON
• Shampoo Area
• Shampoo Bowls/Backwash Units
• Shampoo Chairs
• Shampoo Area Cabinetry & Storage Shampoo Bowl Hair Trap
• Hair Color Bar
• Trash Bin
SALON STATION
• Salon Styling Chairs
• Stylist Cutting Stools
• Salon Chair Mats
• Salon Styling Stations
• Mirrors
• Tool Appliance Holders
• Utility Carts & Trolleys
• Utility Trays
MANICURES & PEDICURES
• Pedicure Chair
• Pedicure Technician Stool
• Pedicure Technician Cart
• Manicure Table
• Manicure Technician Chair
• Manicure Customer Chair
HAIR PROCESSING EQUIPMENT
• Dryer Unit
• Dryer Chair
• Wheel Set for Box Dryer
• Hair Steamer
• Hair Color ProcessorS
SKINCARE & SPA EQUIPMENT
• Facial Machine & Mag Lamp
• Facial & Massage Bed
• Spray Tan Machine & Equipment
• Trolley, Carts, & Trays
• Multifunctional Skincare Machine
• Wax Warmer
ESSENTIAL TOOLS
Don’t forget your tools after getting all your essential hairdressing salon equipment! You will want high-
quality all-purpose shears, blending shears, clippers, trimmers, razors, and a blow dryer to help you
perform your services to the best of your ability.

THE TOOLS EVERY HAIR STYLIST NEEDS

• Shears
• Blending Shears
• Clippers
• Trimmer
• Blow Dryer
• Curling Iron
• Flat Iron
• Razor
• Sectioning Clips
• Combs & Brushes
• Water Bottle
• Capes
• Disinfectant & Jar
• Towels
• Duster Brush
• Hair Products