Whether you've been in the lash game a while, or you're just starting out, knowing your numbers is crucial to the success of your business.
Your goal in business isn't to breakeven; it's to deliver incredible service and experience for your clients and make profits from doing it!
One of the biggest mistakes in this industry, is lash artists undercharging for their treatments. Some cover their costs but don't earn money, while others are losing money.
Let's discuss the 3 ways you can ensure that you are making money in your lash business!
1. Know Your Supply Costs
You need to know exactly how much it costs to provide your services (i.e. all of your product costs, and exactly how much of each product you use for each and every one of your services).
To work it out, you must actually know how many drops of adhesive you use in one full set - and not just guess! (as an example).
Think about how many lines of lashes you use. What's the cost of one set of eye patches, and how much cleanser do you use per treatment? How much micropore tape do you go through per client?
If you're already on top of this - gold star! You're on your way to building a profitable business.
If not, let's fine-tune your boss skills.
Knowing your numbers means that you can set accurate treatment pricing and also establish guidelines and procedures for training your team. Get tracking lash boss.
2. Know Your Overheads
Every business has operating costs. You need to factor in things like rent, electricity, booking software, insurance and equipment hire. Investment in lash training, certificates and courses, business registration, website costs, marketing or advertising also all fall into this category.
Even if you're not operating from a commercial salon, you still have business costs. If you have an accountant, they can claim a lot of your expenses against your business to reduce your taxable income.
I also suggest you review all your costs and increase your pricing every 12 months. Know your worth, charge it, and then add tax!
3. Know Your Profit Margin
Money isn't a bad word, and financial success shouldn't be something you shy away from. If you want to run a profitable lash business, you can. If you don't want to scale your business that much, (or right now it feels impossible), don't stress your pretty lashes over it.
Start by getting clear on how much money you want to profit per service. Once you know your supply and operating costs, you know how much you need to make to break even, and then add your desired profit margin on top.
Please don't look to local competitor's pricing to see what's reasonable. Firstly, you have no idea what their business costs are; you won't know if their business is financially viable, and if you do 'copy cat' their pricing, you might undercut yourself - and if you're not making an adequate wage, what's the point of being in business? There isn't one!
This is YOUR business. Make your mark. Stand out.
Following these three (fundamental business) rules will save you heartache, wasted energy and make you money!! Do your homework and build your dream business.
Want to know more about growing your lash business? Join my free Facebook group - The Lash Business Lounge. Its where I share heaps of advice about how I grew my own salon to seven figures, and I go live to answer all your burning lash business questions weekly!