[143] 3 🤑 Financial Decisions that Grew my Business: Hairstylists Guide to Cash Flow, Compensation and Budgeting (Video and Audio)

cash flowsalon cash flowsalon compensationsalon budgethair stylist compensationhairstylist budgetfinancial literacy for hairstylistssalon suitesalon suite cash flow
Written By Ren Lopa

Hey Successful Hairstylists! 

Today we're talking about FINANCES behind the chair and in your personal life!!

(((Keep scrolling for video and audio versions!)))

Whether your goal is to stop over-drafting every month or to double your retirement investment - you're going to get practical steps you can take today to get closer to that goal!

We're talking about...

- How finances gives us freedom, opportunities and impact in our community

- The 3 Financial Decisions that grew my business

- 3 easy tools you can make RIGHT NOW using just a sheet of paper

DISCLAIMER. I am not a financial advisor or accountant. I can only share what has worked for me and how to get started on your money journey. MOST banking and investment institutions do offer FREE financial advisors and mentors - you might be scared to reach out for support, but they are there for you!


The topic of finances and budgeting can be overwhelming. I remember many times in my life where I preferred to just not look at what was happening with my bank account because I knew it was going to hurt my feelings (ha). There were times when I had just $50 left in my bank account with creditors calling to collect… (have you been there, too?). The thing is… when you’re NOT managing your money in your business or personal life… you’re forced into constant survival mode. And that survival mode burns up your beautiful creativity, enthusiasm for your clients, inspiration for learning. Survival mode zaps all the greatest parts of us.

And the sooner I was able to get out of survival mode with my finances - the sooner I was back to feeling my best self and like I could actually focus on being a great hairstylist, getting new clients and being creative again.

I want you to feel that too.

Here are the 3 Financial Decisions I made to get there…

1 MANAGING MY CASH FLOW

As Independent stylists we can think we get 100% of what we make - and while that’s true, 50% or more (depending on your expenses) go right back into the business immediately.

This means that you are most likely making less than you thought you would when you branched out on your own.

Understanding your cash flow, compensation and budgeting in your business is so so big in gaining traction.

Because, it’s possible to see more clients and make more money and still be broke. (Ouch).

The best place to start is to simply start PAYING ATTENTION (more on this below).


2 BUDGETING AND PLANNING AHEAD

There is NO (none, zero) reason for you to not know how much your business costs you every single month.

So many hairstylists I work with calculate this number once and then don’t think about it again. You have to know what your numbers are so you can know if you are making enough to EVEN pay yourself. You need to know this so that you can know how much of a raise you get every quarter (without raising your prices). You need to know this so that you can run really fun promotions to get an influx of cash in your business when you need it.


3 FINANCIAL LITERACY

In 2024 we have no excuses to not know what we’re doing with our money. There are thousands of youtube videos, podcasts, books, audio books and resources to guide us and walk us through how to manage our personal and business finances.

If you haven’t ventured into this world until now, no worries - today is the second best day to get started!

Here are my top recommendations:

  • Money Guys Podcast

  • Profit First Book

  • Your Bank Statements and Bank Account (yes, you need to be in the habit of looking at your account and bank statements daily, weekly and monthly)


So, how can you gain traction in those 3 areas?

First, DECIDE right now that you’re ready to commit to changing your money story.

Then - get out a few sheets of paper and a pen and walk through my financial method below.


FINANCIAL METHOD:

  • Make a list of all RECURRING monthly expenses and their date. Put this on your fridge. Every week you will be able to see what is scheduled to get drafted from your account. As you get paid you will be able to see how much of it is already promised to your life and this can help stay on top of your spending.

  • Make a list of all account balances including your debt, bank accounts, credit cards, investment accounts, etc. — keep this where you can see it every day. Write the new balances every time a new month starts. This helps you see how your day to day spending impacts your accounts (for better or worse). It also keeps you motivated to pay down debt as you see the balances getting smaller and smaller. It starts to “game-ify” your finances and make it almost fun. (Almost).

  • Write out all extra spending. When you spend extra (not recurring) —— gas, groceries, eating out, shopping —- keep a tally. A lot of the time we get behind because we FORGET about all the things we need.

    • After a month or two, add up these categories so you can plan for the next month. See which ones are necessities which ones are bonus.


You might notice I’m not mentioning anything about a budget here. I am not saying to classify anything or restrict anything. Your very first job as your new Chief Financial Officer is just to NOTICE your habits and what is happening. The other things, in my experience, will work themselves out as you see your impact on your money and your POTENTIAL.

When you do this regularly for your business and personal income, you will finally step into your life and future freedom.

XO,
Ren

——

If you're new here, welcome!! I'm Ren Lopa, the CEO and Founder of Wolf and Rabbit Inc Salon Marketing! I'm obsessed with helping hairstylists and estheticians make more money doing what they love!!


If you need help getting fully booked - check out these resources!



Watch Full Training On Youtube

Listen / Watch on Spotify

#independentstylist

#hairstylist

#framar

#behindthechair

#haireducation


Ren Lopa
Previous

[144] The Reason Independent Hair Stylists 😰 Don’t Hit Their Goals (And What to do Instead)
Next

[142] Top 💸Sales Secrets Every Hairstylist Should Know: Get New Clients, Increase Your Average Ticket (Video + Audio)