Our friend Misty Jayne, recently made a post about how not being a “numbers person”, isn’t an excuse anymore.
To say the least, we were inspired.
Because it’s TRUE.
Living the creative life is great. But whether you are a salon owner or an independent… you will have to do a bit more than just dabble in the numbers side of things.
Now don’t get me wrong, I’ve been there where it takes all of my energy to look at my bank statements, become confident with budgeting, and honestly just to know where my money is going month to month. Trust me on this, the more you intentionally go and look at your numbers, the more you will get comfortable with money management!
It’s kind of like when you get up on the diving board when you’re little and you look down to the cold water. You get butterflies in your stomach. You look behind you, and another kid is standing there waiting for you to jump. That’s kinda how it feels at the start of looking at your numbers. But as you get more comfortable diving into your numbers, you realize it’s not that bad.
Here are some of our favorite tips to get more confident with your numbers:
- Be aware of your financial position
If you don’t know your numbers you don’t know your business. It’s critical to know the financial state of your business. Now you may face some hard truths here. But knowing the inflows and outflows of your business, helps you to create a plan and identify where you can make improvements in your business i.e. paying off debt. Knowing your financial position also helps you to identify changes in your financial heath faster and mitigate them.
- Find someone you trust talking money with.
It can be overwhelming to start looking at your invoices and statements. Make a meeting with your accountant or bookkeeper. You likely will need to meet with them more than once too. Go into this meeting with an open mind. As one, you’re going to learn a lot. And second, you might discover you need to make some changes to your business.
Talking to someone who is trained and experienced in the financial side of the business is important. This person will help you to understand your financial statements, manage your cash flow, prepare for taxes, and more! Ask questions as they come up. Also, don’t feel ashamed if you don’t know everything when meeting with your accountant. They’ve spent their time dedicated to studying their practice, just like you have with yours. Trust me – that won’t be able to do the work you do!
Talking to someone you can trust talking money with will bring ease of mind and make you feel confident when looking at your numbers.
- Set Financial goals
Set goals, not just for your salon or your chair. But set them for yourself too! Ask yourself how long do I want to be working? Do I want to go solo? Do I want to become a salon owner later? When do I hope to reach these goals?
Setting goals will help you to get more focused on not only where you want to go, but when you want to get there. After setting some goals take some time to figure out the <i>how</i> you will get there. Also, be sure to check in with your goals frequently too. This way you can make sure you’re on track, but so that you can adjust accordingly.
- Use technology!
There are so many tools out there that help you better understand your business’s financial health. These programs also help you understand your cash flow and prepare for tax season too. Some of our favorites are QuickBooks, Freshbooks, and Wave! If you do work solo, be sure to look for an option for freelance!
- Believe in yourself.
Babe. Being a salon owner or a suite renter… means you run a business. You dared to follow your dreams! THAT’S AMAZING! And I’m proud of you!
As a business owner, you wear a lot of hats. Not only are you a stylist, but you’re manager, you do the marketing, the ordering, you likely are the janitor… and you’re also the financial manager. It likely often feels like you’re juggling and just trying to make sure you don’t drop something.
If two things stick with you today, I hope it’s that you should never feel ashamed to ask for help when you’re unsure of something. And second, that the more you practice something the easier it gets. So, the more you work in your numbers, you will feel more confident and the better off your business will be too!