The idea of working for yourself is THRILLING. You look in the mirror and tell yourself, “I can do this, I’m going to be my own boss and run my own business!” And the truth is, you will! Just make sure the timing is right for your business and that you have your finances dialed in. Consider the following as a helpful guide.
- Revenue: Consider your current weekly revenue servicing your existing clients and how much you can realistically expect to generate servicing your clients in a salon suite. Make sure that your weekly revenue greatly exceeds the weekly rent for a suite. Remember, suite rent isn’t your only expense - you still have to generate enough revenue to make a living (groceries, car payment, mortgage or apartment rent, entertainment, etc). Sit down and do the math - it’s a remarkable helpful exercise!
- Expenses: Create a budget that takes into account all of your expenses, including rent, utilities, insurance, equipment, supplies and marketing.
- Financing options: Look into financing options, such as small business loans or crowdfunding, if you need additional funds to start your salon suite.
- Long-term financial goals: Consider your long-term financial goals and how owning a salon suite will fit into your overall plan.
- Cash flow: Make sure you have a good cash flow and enough savings to cover your expenses for at least four months, in case your business is not generating as much revenue as you expected in the first few months - especially if some of your existing clients do not follow you when you make the move into a suite.
The above may seem daunting and scary, but it’s necessary and incredibly important to know the numbers! If you need help, just ask - the Ovation Salon Suites team is more than willing to sit down with you and work through this exercise together.
