Is your salon, spa or clinic on track to make a profit? –
Summary
Once you know your break-even point, you can feel confident that you know the financial state of your business, and not wonder if you’re going to be able to afford to pay bills, staff or invest in something new. Include all of your expenses – whether they happen regularly (like rent, wages, tax, and stock orders) or only once or twice a year (like equipment purchases, bonuses, and staff parties). You probably don’t want to wait until the end of the week to see if you broke even or not, so a daily break-down will help you keep on track and stay aware of the bottom line. Of course you’ll want your business to do better than just breaking even, so add a little extra to your daily break-even number to create a target for each day. You may need to add or remove expenses, for example, if you gain or lose a staff member, buy new equipment or reduce any of your operating costs.
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