#Hair salon monthly expenses update#
#Hair salon monthly expenses software#
#Hair salon monthly expenses plus#

Marketing your salon online, in print, or on-site takes an ongoing investment, but if you’re successful at it there is a large return. Marketing – Word of mouth alone is not enough to build up a stable of loyal clients.

Every time you process a credit card it costs 1.5%-3% of the total transaction.

Credit Card Processing Fees – While some businesses can “go retro” and run a cash-only establishment, many customers prefer to pay by card, which means you will need to pay processing fees.

However, utility costs for salons are almost always one of the biggest recurring expenses. The amount you pay depends on the size of the space, the amenities you offer, and your location.

Utilities – It takes a surprising amount of electricity, water, and gas to keep a salon running.

Insurance costs for most salon owners cost approximately $1,000 per year.

Insurance – In the event of a fire, an accident or any other unanticipated events, you need insurance to protect yourself and your business.

Equipment Leasing – If you are leasing the equipment in your salon, you have to keep up with the monthly payments, or risk having important equipment repossessed.

You can either pay for these yourself or budget for a cleaning service.

#Hair salon monthly expenses plus#

Cleaning Fees – Keeping a salon clean and sanitary takes a lot of time, plus the products and equipment that go into the cleaning.

#Hair salon monthly expenses software#

In addition to hardware costs and installation fees, these software pieces have purchase and subscription fees. You should account for a breakdown of business expenses related to technology, like a customer tracking system and a point of sale (POS) solution. Technology – 21st-century salons have more technology these days.Payroll Taxes – Depending on the business structure of the salon, you will need to pay either payroll taxes or self-employment taxes.If a paycheck bounces, you risk losing good employees. Your staff relies on you to cover payroll. You rely on your staff to serve your customers and help you run your business. Wages – Whether you have one employee or ten, payroll is potentially a significant line item of your operating budget.Typically, this annual or bi-annual renewal requires a fee. Keep in mind these licenses and permits must be renewed. If you sell beauty products like shampoos or conditioners onsite, you’ll probably need a retail permit as well. Beauty salons may also be required to hold health and safety permits. Licenses and Permits – To operate a beauty salon, your business must apply and pay for a business license.As part of the beauty industry, it’s important that you maintain a well-appointed space that’s aesthetically pleasing for customers. Your salon chairs will eventually wear out, and as styles change you may need to change the overall décor of your space.

#Hair salon monthly expenses update#

Something that most owners overlook, however, is the need to update and improve an existing space over time. This is the most obvious and, realistically, one of the biggest beauty salon expenses you’ll face.

Salon Space – Regardless of whether you’ve purchased retail space or rented a salon space, you’ll have monthly payments toward your mortgage or lease.

This makes it easier to set aside money in your budget for these known expenses.

The good part about recurring expenses, however, is that you can usually plan for those costs. These are the expenses you will need to pay either monthly or annually. Some of the biggest expenses your salon will face are recurring expenses. You can use this information to look for ways to cut costs, raise your prices or determine if you need financing to help meet cash flow needs.Ĭheck out these common expenses for beauty salons to make sure you’re not missing anything when you list out your expenses. Understanding the breakdown of business expenses for your beauty salon can help you determine if your salon is profitable. While people with a flair for cosmetology often have the skills to provide top-notch beauty services, handling beauty salon expenses requires a completely different skillset. Being a successful cosmetologist takes a lot of talent and a lot of time spent learning your craft.