If you’re already in a lease, the only way to reduce your rent percentage is to increase your revenue. Keep in mind: every time you exceed that 12% budget and benchmark, you chip away at your profit. In some cases, hair stylists run their numbers only to find out they are paying 20-25% of their revenue into rent. This is one area that I see so many stylists get into trouble. You need to bring in $10,000 every month in revenue to hit your rent goal. If you’re already renting, you can also calculate going the other direction: If you’re looking into new spaces, you can use your monthly revenue to set yourself a budget. If you take one thing away from this article, take this:Īs a suite owner or renter in the beauty industry, your target rent (or mortgage) per month should be 12% of your total revenue. I promise, being better about your budget doesn’t need to be complicated. That’s why I want to share my two simple calculations that will literally change the way you think about your salon business. In most cases, I found that people avoid the numbers only because they weren’t taught what to pay attention to or what the benchmarks are. It can be scary, especially if you are new to looking at them.īut as entrepreneur Marcos Lemonis says, “If you don’t know your numbers, you don’t know your business.” So many stylists and beauty professionals shy away from the numbers in their businesses. It’s imperative for you to spend as much time working on your finances as you do working behind the chair.
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