Creating a budget is one of the most important things you can do to grow your business and make sure you're on track financially. Whether you're trying to start an eyelash extension business from scratch or taking over an existing one, creating a budget will help you plan for expenses, stay focused on your goals, and reach them far more easily than if you didn't have a budget at all.
Create a budget.
Before we get into the nitty-gritty of how to create a budget, it's important to understand what exactly a budget is. A budget is a plan for your business that lays out where all your money will be spent and how much of it you're willing to spend on different things. This allows you to know whether or not you'll have enough money left over at the end of each month, quarter, or year.
It may sound complicated at first, but creating a budget doesn't have to be hard or time consuming once you learn how. You can use one of three different types of budgets:
Track your income and expenses.
Now, you can use a spreadsheet to track all of this. You can also try some online tools that have been designed specifically for small business owners.
You’re essentially going to want to track the source of your income and where it goes. For example, if you earn $500 from a client but only invoice them for $400, then that’s money in the bank (and you should be able to keep it).
I recommend setting up separate accounts in whatever software or tool you choose to use—one for each type of income: cash sales and services rendered (i.e., lash extensions). This will make it much easier when calculating your tax deductions at the end of the year.
Keep tabs on costs.
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Keep tabs on costs.
While it's important to keep in mind that you want to avoid losing money, it's equally important not to overcharge. The best way to do this is by keeping track of every single penny that comes into your business and goes out. This allows you to make sure that no matter what happens with your business, you'll always know exactly how much money is coming in and going out.
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Make sure you’re charging the right price.
As a new eyelash extension guru, it might be tempting not only start charging less than everyone else but also cut corners here and there so as not overcharge people for services rendered at home or elsewhere outside of your studio space.* Make sure customers are happy with their lashes – especially when they're paying more than usual!
Consider insurance.
You should always have insurance.
Insurance can help you if you have an accident, illness, theft or fire. It's also important to note that insurance generally covers personal property such as equipment and inventory that may be damaged or lost in a disaster.
It is a good idea to speak with your insurance agents about creating coverage for your business as well as for your home office space if it is used for both personal and professional use within the same structure. This is called “double dipping” by many companies but it can be very beneficial in reducing both costs as well as increasing coverage limits by combining all of these under one policy rather than having separate ones for each item/location utilised by the business owner.
Ask for help.
There are plenty of professionals out there who can help you with your finances. Some of them include:
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An accountant. If you’re not great at math, or if it's just not your thing, an accountant can help with the nitty gritty of figuring out how much money you'll make and when. They can also help with tax forms and other financial documents that need to be filed properly with the government (so yes—you should still file taxes).
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A bookkeeper. This person will take over some of the daily tasks like closing out invoices or helping to manage your books so that they're accurate and current at all times. This is especially helpful for busy lash stylists who don't have time for all those little details! Another benefit is that they'll alert me when I'm about to run out of cash in my business account so I'm never caught off guard by an overdraft charge again...which happened once before after forgetting about holding a client's deposit check until she had completed her first full set appointment date because she wanted her lashes done right away instead."
Creating a budget helps you take control of your finances.
First, a budget is more than just money. It's also about setting goals and making plans, which helps you get organised and see what your financial priorities are.
Setting up a budget can be one of the most important things you do as an entrepreneur because it allows you to take control of your finances—and this is especially true when it comes to growing your eyelash extension business. There are plenty of benefits that come from creating a budget for your business, so let's take a look at some of them now:
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You'll have more peace of mind knowing that there is enough money to pay all the bills
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You'll have more peace of mind knowing that there is enough money available in case something unexpected happens (like having an expensive equipment malfunction)
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You'll have more peace of mind knowing exactly where all the money goes each month
Conclusion
If you’re looking to grow your eyelash extension business, creating a budget is a great place to start. With a budget in place, you can take control of your finances and keep them on track. Plus, it will give you a clear picture of what expenses might crop up that could affect your bottom line—and help you plan ahead for them!