Business Finances

Making cash or getting debit card transactions everyday is a blessing. Budgeting and saving your money is a major key to your success. There will be times of drought and there will be times of overflow.

How you manage these times are important.

Budget

Budget- an estimate of income and expenditure for a set period of time. Know your numbers. Know what’s coming in and what’s going out. Spend only on what you need instead of spending money just because you you're going to make it right back. I have learned some important lessons about money over the years.

Save money now and it will save you later When your clients' life change, your life changes Save for your own retirement

Saving money is a skill. Once you put it away, FORGET IT! I have practiced a few different savings methods. The envelope system is my favorite, considering we deal in cash.

Set a savings goal. It can be as small as $500 to $10,000.

Number the envelopes 1-52 (number of weeks). Place a dollar amount on the envelope for each week.

For example:

Week 1 - $25, Week 2 - $50, week 3 - $75, Week 4 - $100. That totals $250 a month x 12 months = $3,000 a year. The weekly dollar amount depends on your savings goal.

Trust me, life will throw you rainy days and you will need a cushion in your finances. Because of saving, I was able to take off for a month, go on tour with The Legion of Glam, and visit family without financial worries.

That’s the level of abundance and freedom we're striving for. Once you master the discipline of saving, you can truly enjoy your entrepreneurial freedom.

Clients lives will change. They will get promotions, relocate, become ill, and loose employment. When these things happen, getting their hair done becomes less of a priority. Now your income has been compromised. You may need to adjust by pulling from your savings to fill in the gaps of lost income.

Retirement

Growing up we are educated on working corporate jobs for years in order to get social security and a 401K plan. These benefits are available in the beauty industry if you work for corporate hair companies like Hair Cuttery. You will have to create and fund these benefits on your own working behind the chair. Having a retirement plan is important.

After 20 years, I didn't have a retirement! I learned about managing finances late in my career. In addition, I was too busy raising a child to see the importance of creating retirement fund. I pray you are fortunate enough to see 20 years in your career and that you plan your finances accordingly. Only you can set yourself up for success in the long run.

I have included some charts that will help you keep track of your finances. Learning how to manage money is definitely not taught but it’s the most important part of business sustainability. For starters, practice saving 1 client at minimum a week. Try to keep your expenses at 50-60% of your income. I do understand that might not be possible at first but eventually as you make more money, continue keep your expenses down.

Alternative Income Streams

Here are some alternatives ways to supplement your income as a locitian:

Product Line:

Your clients trust you and they will trust your brand. The game is called Private Labeling. This is where you find a company that makes the product and you brand it. You have options to develop or recreate a product. The internet has made it so easy to get information on vendors, so take advantage of this resource.

Cosmetologists are making millions yearly from product sales. Raining Aloe Hair and Skin Products is my baby. She was made specifically for locs and natural hair, but can be used on all hair types. Retail products to increase your monthly or yearly income goals by $500-$3,000+

Here are a few vendors to start

1. Dreamline beauty https://www.dreamlinebeauty.com

2. Envii Labs https://enviilabs.com

3.Genesis Private Label https://genesisprivatelabel.com

4. Tropical Products https://www.tropicalproducts.com/private-label-hair-care/

5. Alibaba https://m.alibaba.com

Education Classes

As a professional loctician of 20 years, it’s only right to serve and share my knowledge. No one has reached success without learning from someone else. Whatever you know, teach it! As an educator you will always be a student of the game as well. Learn more so you can teach more!

Education is about service. I absolutely have a heart for teaching. I developed an educational program for locticians to learn called Loc Pro University.

All the knowledge I know about locs, business and life lessons are shared here. AGAIN, whatever you know, teach it!

Monetize Your Content

Social media is a monster when it comes to getting paid online for what you do. Platforms like YouTube, Facebook, and Instagram all have monetization options for your channel. Did you catch that? “YOUR CHANNEL.” Your social media is your own show and you should get paid for it.

Creating content is fairly simple. Record what you do in the salon daily.

The genius part is that you ARE the content. You are the lead character and your clients are co-cast. Your camera phone is your videographer and your platform is the production studio. Free and easy.

There are copy-writing rules, however, hundreds of free songs are available to add to your videos. YouTube is my favorite platform. Increase your monthly and yearly financial goals by $500-$2,000+.