The first step in creating a salon budget is to make an Excel worksheet. A good salon budget worksheet will list all expenses and provide you with numbers you can use as your own guideline.
Salon budgets are usually calculated by dividing the total cost of the services you want to offer by the number of hours you will be in that business. If you plan to own your own salon, you may need to have a larger salon budget. For instance, if you intend to work for a small retail chain, you will need to include more employees in your worksheet.
The first part of the worksheet is the listing of the items you will purchase and how much they cost. You will also want to list out any items you will need to order from the suppliers you use. All items should be placed in the same category, so that you will be able to compare them at a later time.
Salons are usually categorized by establishments, services, location, or other things. These are what should be listed on your worksheet. You should write in your establishment and location. These will help you determine how many employees you need to run your salon effectively.
The next portion of the worksheet will require you to determine a certain amount of salary you will ask of each employee. You may want to put a cap on your salary. It will help you create a good guideline for everyone in the salon to follow. You may also want to consider raising the income tax and license fees you want to charge to add to your salary.
After you have determined a number of employees, you can then put the tax payment you want to make per year. Also, you will want to list out a service charge you will be charging the customers to cover the cost of the materials used to run the salon. As you consider different items, you will be able to increase or decrease the cost of the service charge accordingly.
Having a worksheet will help you in your efforts to figure out how much money you will be making and how much money you will be spending in your salon business. You can use it as a guideline or you can start a spreadsheet that will track your monthly revenue and expenses. You may want to start a free business and use your salon worksheet to show potential clients your ability to pay back the loan and the costs of running your business.
If you find yourself spending more than you are making, you should start making some changes. You may need to close up your salon and look for a new business or you may want to change locations to get more customers. Regardless of what your next steps are, starting a worksheet will help you get through any tough financial times you encounter in your new business.