Even though you're probably already in operation as a salon or spa business owner, it never hurts to review your budgeting. If you're like most stylists, you probably don't have a set-in-stone budget - you buy things as you need them, and on good days you might keep the receipt or log the purchase. You might think this strategy is working for you now, but without a concrete budget plan you may be unintentionally hemorrhaging profits.

There are two primary phases of business for which you'll likely need distinct financial plans. We'll be discussing both of them within this article: both the Startup Budget and the Ongoing Budget are two important financial roadmaps for your salon or spa. Keep in mind that a complete budget will need to contain details regarding both your expenses and your revenues in order to determine your true profits - the money that's left for you at the end of the month. 

The SBA recommends that you anticipate overhead costs prior to commencing any business venture, but we're going to go ahead and check that off the list now (better late than never). If you're a super-boss who's already completed a formal budget, feel free to follow along and cross-reference your existing itemization with some of the budget items we will be discussing. 

As your business ultimately launches, you’ll still have a similar set of expenses, but you’ll also have to factor in projected earnings and revenues. Each month you should be completing a Profit + Loss Statement (download a free template at the following link: https://wise.com/us/income-statement/profit-loss-statement) in which you detail all of your business expenses, assets, and income. Your budget for business expenses may vary month to month based on your available revenues – for instance, in a slow month you may have to cut your marketing budget.