Self employed and worried

[Leely]

I agree with you 100%... these threads are why I always maintain this site should state 'for professionals and opportunists'....

Sent from my GT-N7100 using SalonGeek mobile app

I am an professional.


Leely x

 

[Baggybear]

You may have qualified in beauty treatments but your NOT using a business head.

You want everything given to you on a plate and are complaining that your not getting what you want & it's not working, after 2 weeks.

You can't travel 50 miles to & from work, pay to rent a room (even on a percent split) & HAVE to pay a childminder with no client base or savings to back you up.

You are NOT in a position to start a business that will work right now. You stand a MUCH better chance of it working when your children are in school or you have someone available to watch them for free - childminder fees are a HUGE drain & should only be paid out when you know 100% you have clients & that your going to earn enough to pay the childcare fee from your split after covering your treatment costs.

It takes a lot of hard work & time to set up in business and it does NOT happen overnight. I can see you want it to work but it's not going to work the way things are right now your just going to use all your products and then you'll be unable to afford to replace them.

 

[coco.]

I agree with what Baggy bear said.
I'm not knocking you or your enthusiasm but sometimes we want things but can't have them right away.
I was supposed to start college this year but due to childcare issues and my husband's promotion, I couldn't, as hard as it was I knew I had to put it off till next year when I would be in a better position to give it my all.
Maybe you would be best to leave working for yourself till you are in a better position with childcare and money.
It's great that you've given it a try but if the times not quite right for your business, there's nothing wrong with waiting a little while and trying again.
Best of luck with whatever you decide x

 

[classixuk]

I have been self employed since June, and have done a few clients each week. For the last 2 weeks I have been working from a salon 4 days a week.

In those 2 weeks I have had 3 clients no turn up for appts and 4 clients turn up late (20-30 mins)
I have just sat down and gone through how much I have made I've not made enough to cover the childminder. I have 2 children and they have been with the childminder 6 days over 2 weeks.
I also live 20 miles away from the salon. I'm really worried that I'll never be able to cover the cost of the childminder or my petrol to see a profit.

I know it's only 2 weeks in, but I'm panicking thinking I will have to go back to admin work mon to fri and end up being bored and depressed again.

Can anyone give me advice on what I can do??

I'm so worried about money I've hardly slept and have hardly eaten all week.



Leely x

Leely, I have read your other posts about not giving up etc. and how it would look if you did "give up" after 2 weeks, so wanted to give you some pointers if I can.

You haven't revealed your break even, so I will assume a few things (hope that's OK).

As I understand it you are working 4 days per week?

If you were employed as a beauty therapist in a local salon 4 days per week you would get at least minimum wage plus tips which is equal to £7.31 per hour (£6.31 wages plus at least £1 in tips for each hour of the day (some people might give you a fiver, some might give you nothing, but I would imagine it would average out to about £7 a day at least). You would also get 22.5 days paid holiday per year.

In a typical 8 hour day you would have a couple of breaks and a lunch, so you would be paid for 7 hours. Add on the 'free' holiday pay and your hourly rate would be approx £8 per hour over the year. This would provide an income of £224 per week.

So, you need to clear that in profit at least, otherwise there'd be no point in doing what you are doing.

Assuming that:

1. Your commission split, plus product costs is 60% of your takings.
2. The salon is 20 miles each way (i.e. a 40 mile round trip)
3. Your childcare is £60 a day
4. Your insurance is £99 a year
5. Your accountant charges £99 a year
5. You don't buy any other training courses, kits, work clothes, advertising etc. for the next 12 months...

Fixed daily costs (based on working 4 days per week): Petrol - £7.35, Childcare - £60, Insurance - 54p, Accountant - 54p = £68.43

So, to cover this, plus a wage that's equivalent to being paid national minimum wage you would need to take: £68.43 x 4 = £273.72 plus £224 (income) = £497.72 + (£497.72 divided by 40, multiplied by 60) £746.58 = £1244.30 per week.

Looking at this as beauty appointments, assuming that you charge: £25 for a shellac and book out 45 minutes, £50 for a facial and book out 60 minutes plus a 15 minute cleaning down time and £25 for a spray tan booking half an hour out...

Your appointment book needs to look like this EVERY day in order for you to earn the equivalent of a minimum wage:

Facial only - 7 x 60 minute appointments
Facial with combination of Shellac / Tans - 5 facials, 2 tans, 1 shellac
Tan only - 13 spray tans
Shellac only - Can't be done (unless you reduced your appointment time to 30 minutes or increased your price) ... if you could turn around a shellac every 30 minutes you would need to do 13 of them every day to get minimum wage.

Sorry if that's mildly depressing, but it's what I see.

 

[virtues2011]

Yes I'm sure you are, and probably outstanding in what you do. ... but being qualified in beauty treatments is very different to running a business. ..this is where the terminology 'opportunist' comes from. I see and read so many people try and start businesses with no cash reserve, no basic understanding of what the legal requirements are, little marketing knowledge, no idea on profit margins or gross profit, and thinking a few weeks of trying hard warrents a full clientele base and a successful business to boot. ..it doesn't it just provides demotivation and failure. . and unfortunately very quickly.

It wasn't a personal attack on you by any stretch. I have 28 staff and five businesses not all centred in the beauty or hair industry so I have an idea of what happens and what people face and it is not easy by any stretch.

Sent from my GT-N7100 using SalonGeek mobile app

 

[Leely]

I do not want everything handed to me on a plate, and I'm very shocked you have assumed that.
I work very hard and I'm trying the best I can to succeed.

I've sat down and gone through my accounts and realised that I was panicking on Friday due to lack of sleep and other personal problems. After looking at them I'm doing better than I was being mobile and working from home.

As I have said before and will say again.

Thank you for all your comments and advice I've taken it all on board.


Leely x

 

[Leely]

Yes I'm sure you are, and probably outstanding in what you do. ... but being qualified in beauty treatments is very different to running a business. ..this is where the terminology 'opportunist' comes from. I see and read so many people try and start businesses with no cash reserve, no basic understanding of what the legal requirements are, little marketing knowledge, no idea on profit margins or gross profit, and thinking a few weeks of trying hard warrents a full clientele base and a successful business to boot. ..it doesn't it just provides demotivation and failure. . and unfortunately very quickly.

It wasn't a personal attack on you by any stretch. I have 28 staff and five businesses not all centred in the beauty or hair industry so I have an idea of what happens and what people face and it is not easy by any stretch.

Sent from my GT-N7100 using SalonGeek mobile app

I didn't think it was an personal attack. I was just adding that I was a professional. I didn't want it to come across I was not.
I completely understand where you are coming from


Leely x