Cash Flow and Money Management
Cash flow is one of the biggest problems with many small and growing businesses and the beauty industry is no different. Seeing cash coming into the tills is all well and good, but, understanding where it has to go to (and when it has to get there) is essential. You must get your head around cash flow.
By the time suppliers, rent, rates, etc. are paid (not to mention VAT), cash can quickly go out of the salon door as quickly as it can come in and bills can start to mount.
Learn to understand your regular monthly expenses and keep your records up to date as much as you can. Beauty salon computer systems (such as iSalon, Short Cuts, etc.) can deliver you fantastic income data, but knowing what is needed for bills, when they are due, and making sure you have money available is essential.
If you are not inclined towards numbers and accounts, find a book-keeper who is who can guide you and help you manage this essential aspect of managing your beauty salon.
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