How do you manage your professional skin care income? Do decisions about when to pay yourself, reinvest in your business and contribute to your savings account make you sweat and grab for a carton of Ben & Jerry’s? The reality is you should be doing all three, even if you are just starting out. Following are three tips on how to remove the financial fear from your skin care business.
1. Pay yourself: No ifs, ands or buts about it. A big part of achieving financial freedom is redirecting your income—and that includes paying yourself. Overcome the fear that more money might not come your way and, instead, take strides toward keeping a portion of your earnings for yourself. Try incorporating these steps.
- Give yourself permission to accept a paycheck instead of worrying about unforeseen obstacles.
- Open a separate business bank account, and really step into becoming a professional businessperson.
- Pay yourself at regular intervals, such as the first and fifteenth of the month, and stand by your plan.
Just starting out? Make a commitment to pay yourself a small percentage, even if it’s only enough for a latte. Establishing a routine is the important part. As your business grows, so will your paycheck. The goal is to create balance and flow in your business. Taking home a paycheck rewards your hard work and keeps you from dipping into your earnings sporadically. Paying yourself is also a great way to acknowledge your hard work, which can only lead to more abundance and success.
2. Stay ahead of the game by reinvesting. Reinvesting in your company is an important measure for any skin care professional aiming for success and financial freedom. My dad is a business owner and lives by the motto: “You have to spend money to make money.” This can be a challenging part of owning a business, but it is crucial to understand that if you want to increase your income, you must reinvest a portion of what you make. Whether you are an owner, renter, commission-based employee or contractor, this holds true.
You must reinvest in new equipment and continuing education in order to stay on top of current trends in the professional skin care industry. You will find that, by spending money in this manner, you will earn the largest return on investment.
Clients are always looking for the latest and greatest treatments and products. By investing in yourself and your business you will show up in the treatment room as an expert and a leader. Watch and see how this will help you become a booked-solid client magnet.
Create a plan of action and commit to it. Map out a few trade shows to attend; this is an amazing way to stay up-to-date and give you direction on where to spend money to improve your business.
Industry webinars can be an affordable way to continue your education. In addition, there is some great spa equipment on the market for less than $100.
It is wise to seek guidance when you are ready to make a big investment. Turn to your CPA, financial advisor or even a business-savvy friend for advice and then, you can make your decision with confidence.
3. A penny saved is a penny earned. A savings account can be a valuable tool for revealing where you spend and how you can save.
Put a little aside every month—even if it’s just a few dollars. You will be surprised and motivated by how fast it grows.
Saving will also help you avoid surprises at tax time. It is important to remember that an independent contractor needs to save between 30–35% of her income for taxes.
Remember: If you keep doing what you’re doing, you will keep getting what you’re getting. When you invest in yourself and your business, it is a sign that you are ready to grow and increase your income.
Lori Crete, founder and president of The Spa 10 and The Esthetician Mentor, is a licensed esthetician and spa owner with 12 years of experience in the field of esthetics. She is the author of The Six-Figure Esthetician System, and is also a business coach and mentor, and can be reached at email@example.com.