Menu
Working out your finances as a freelancer
More and more people in the hair and beauty industry are going freelance and one of the keys to sustainable success is knowing what’s happening with and how to manage your finances. Here we break down our top tips to get your started.
Ask yourself: how do you want to work?
The easiest way to go freelance is to rent a chair or space in an existing hair or beauty salon. You can pay a fixed monthly fee for unlimited use of the chair or it could be worked out as a daily rate. Or you could agree on a split of your business income. For example, 60/40 in your favour, or the salon could say they need a guaranteed minimum amount per week/month.
What do you want to earn?
If you’d rather be a mobile or home-based freelancer, then you need to consider the figure that you’re happy to have in your personal bank account at the end of each month. To do this you need to consider what your monthly expenses might be, such as:
· Wifi
· Water/Utilities
· Phone
· Products – link to website for products
· PPE Equipment – Link to PPE Equipment on websites
· Retail Stock – Link to retail stock ideas on website
· Virtual Office/Assistant
· Advertising
· Insurance/Licences (Public Lability/Legal Fees
· Accountancy Fees
· Booking/Accountancy Apps
· Petrol/Travel costs
Don’t forget to consider any set up costs to get you started. You may need a travel kit if you are mobile or furniture if setting up a home salon – check out this blog on setting up your home salon.
Once you have a good idea on what your monthly cost will be, simply add them all together and then multiply them by 12. Then add on your desired annual salary and divide that entire amount by 12. This is the amount you need to take in each month.
Once you have a clearer idea on what you need to earn each month, you will need to consider how many clients you need to service within the hours you wish to work, to meet that amount. This will help you get to your final cost per service.
Try: Using an online calculator, like calconic.com that allows you to input your expenses, including your salary.
Top Tip: Are you able to provide any add on treatments/services to help maximise the time a with a client, which in turn increases your earning potential.
Time to review
From time to time you will need to review your prices; this should first be based on your own costs. Have your costs gone up in the past year? Have things become a little tighter?
Find out where and why your costs have increased and if you are able to pass this on to your clientele. Also, look at the rise in inflation; most businesses increase their prices by 10 percent year upon year to reflect this so don’t feel like you can’t!
Top Tip: Keep track of your monthly outgoings by adding them a spread sheet or accountancy app. Then each month, update any increases or decreases so you can keep on top of any changes.
For further reading on how to set your prices, check out this blog: How to price your services as a freelancer.
Keep up with your finances
While it’s vital to have goals, cashflow plans and revenue aims when you’re starting out, you must not avoid handling your outgoings and taxes.
The easiest way to keep on top of your finances is to hire an accountant/tax consultant for a monthly fee. They will handle everything from Income Tax to VAT returns. Or, if you want to save some money, you can use online software such as QuickBooks, which offers a simple package from as little as €4.50 per month. A good in-between option? Do your own recording and invoicing via QuickBooks, then hire an accountant when it’s time for tax returns.
There are some other great accounting apps out there, such as Xero, which has desktop and phone apps that allow you to record your expenses as you go, making Self-Assessment time less of a stress!
For further tips and advice, check out the blogs on our Freelancer Focus webpage or download our Freelance Focus Guide.
Freelance Focus
Freelance Focus, is a one stop resource for anyone working as a freelancer or thinking of going freelance in the hair & beauty industry, which includes a FREE downloadable guide filled with advice, useful insights, experiences and tips (from experienced freelancers) to help you understand the steps needed to make the right choices for you.
Featured products
VEGAN
Delivery
Collection
Please login to your account to check stock in your local store.
Delivery
Collection
Please login to your account to check stock in your local store.
VEGAN
Delivery
Collection
Please login to your account to check stock in your local store.
OFFER
Delivery
Collection
Please login to your account to check stock in your local store.
BUY 3 FOR THE PRICE OF 2
Delivery
Collection
Please login to your account to check stock in your local store.
Delivery
Collection
Please login to your account to check stock in your local store.
Delivery
Collection
Please login to your account to check stock in your local store.
Delivery
Collection
Please login to your account to check stock in your local store.
Back to Posts
Tags
- 10years
- 2021
- 2022
- 2023 nails
- accessories
- acids
- acne
- advice
- all soft
- anniversary
- anxiety
- appointments
- apps
- art
- autumn
- autumn hair
- autumn nail trends
- balayage
- banking
- barber
- barbering
- barbers
- beauticians
- beauty
- beauty guidance
- beauty industry
- beauty professional
- beautypro
- bleach
- blonde
- botox
- braids
- brassy
- bridal
- bright hair
- brow lamination
- brows
- business
- cancellation
- capital & i
- cash flow
- celebrate
- chairs
- checklist
- christmas
- christmas nails
- clean
- client loyalty
- clients
- collection
- colour
- colourists
- corona virus
- covid
- covid 19
- covid19
- covid-19
- creative colour
- cruelty free
- curls
- customer
- design
- education
- event
- facial
- fall
- festive
- finance
- finances
- freelance
- freelance beauty
- freelance hair
- freelancer
- freelancers
- frog skin design
- funny
- furniture
- gel
- gellux
- glam
- glossy waves
- glow
- gold
- guide
- guidelines
- guidlines
- hair
- hair art
- hair care
- hair colour
- hair dye
- hair industry
- hair inspiration
- hair products
- hair salon
- hair style
- hair styles
- hair styling
- hair trends
- haircare
- haircolour
- hairdresser
- hairdressers
- hairdressers advice
- hairdressers guide
- hairdressing
- hairstyle
- hairstyles
- halloween
- health
- healthy
- help
- how i got here
- how to
- hygiene
- ideas
- indola
- ingredients
- inoa
- inspiration
- interiors
- january
- keratin
- keune
- l’oréal
- l’oréal professionnel
- lamination
- lashes
- lockdown
- loreal
- l'oreal
- l'oreal pro
- l'oreal professional
- macadamia
- make up
- manicure
- marketing
- mask
- maskne
- mens
- mens hair
- men's hairstyles
- mental health
- mobile
- nail
- nail art
- nail creations
- nail design
- nail industry
- nail inspiration
- nail trends
- nailart
- nails
- natural
- navy
- neutralise
- new
- new look
- new normal
- new years
- nxt
- olaplex
- opi
- organised
- oval
- party
- party hair
- party trends
- pastel colours
- pigment
- planning
- plant based
- ponytail
- preparation
- pricing
- pro longer
- products
- professional
- professional hair
- professional hair care
- professional tan
- protect
- pulp riot
- re opening
- redken
- re-open
- reopening
- reopening hair salon
- retail
- reverse balayage
- safety
- salon
- salon finance
- salon furniture
- salon management
- salon owner
- salon refit
- salon services
- salon system
- salons
- samantha cussik
- savings
- schwarzkopf
- self care
- selfcare
- self-employed
- semi permanent
- sensitive skin
- skills
- skincare
- skincare steps
- skincare tips
- small business
- smoky hair
- social
- social media
- spa
- spraytan
- spring
- square
- star
- stars
- starting your own business
- step by step
- step by step guide
- step-by-step
- stylist
- success
- summer
- summer hair trends
- sun damage
- tanning
- technique
- textured nails
- tigi
- time to improve
- tips
- tips & advice
- tips for reopening business
- toner
- toning
- top knot
- top tips
- training
- treatment
- trend
- trends
- tutorial
- unwind
- updo
- upgrade
- upskills
- valentines
- vegan
- veganuary
- wahl
- wax
- waxing
- week
- wella
- wella professionals
- winter
- xbox
Latest Posts
- Chantelle: Capital & Me, my self-employed journey & the importance of networking
- Meet Sophie, owner of ‘Sophie’s Lashes & Beauty’ which she has been running now for over 7 years!
- Something Old - Something New
- Skin Cycling 101
- The Winter Nail Trends 2023
- Let's Party
- Winter Glow-Up
- Fall Colour Faves
- Indola Blonde Expert Care Range
- Meet OPI Nature Strong
Related Posts
Indola Blonde Expert Care Range
INDOLA launches NEW Blonde Expert Care range; the high performing care you need for all blondes
Meet OPI Nature Strong
We know you’ve been on the hunt for a natural polish that actually works - one that is made up of ingredients you can trust and one that doesn’t require you to choose between performance and natural, because, well, you shouldn’t have to. So, we poured every effort into making a long - lasting, highly pigmented vegan lacquer that stays on so you can stay natural.
New Naturalash Individual Texture Lashes
Salon System, brand leaders in professional beauty, have announced the exciting launch of a new addition to its Naturalash range.
Introducing New Advanced Creme Wax
Salon System, brand leaders in professional beauty, launches a new waxing product to its hero Just Wax Expert collection: Advanced Creme Wax, which has been specifically designed for delicate skin.
Wella Shinefinity Color Glaze
The long-lasting colour glaze with zero lift and zero damage SHINEFINITY is the new long lasting colour glaze which offers zero lift and zero damage and promises to deliver true-to-tone colour results with a silky hair finish.
Furniture Focus
Spring is in the air, which means it’s a great time to review your salon furniture and general interior to see what could be improved, or even replaced. Need some ideas? Check out our guide to our latest collection in store, and the interiors trends to look out for.
No Limit Nails!
When it comes to nail predictions for 2022, it’s hard to, well, nail them down! That’s because in a post-pandemic culture, trends are very much led by social media and celebrity looks, as well as influential nail techs.
Curls, curls, curls!
Curly hair comes in many forms; from the wavy Type 2s that we see in the European community to the glorious coils of Type 4s. While some might say curls are back, we say: curls never went anywhere! Read on for some top curl-loving tips.