womanthismonth.com | MAY 2025 69 Running a successful salon in Bahrain doesn’t have to feel complicated. Let’s talk about your money goals – the simple, powerful way to take control. Your Salon’s Money Power: The Cash Flow Basics! Every month, we invite readers to pose their own questions for Badia to answer in her next column. Make sure to ask your own by emailing [email protected] “Yes, if staff are not paid well and see no future, targets stress them. Targets help cover salon costs, but first, train them well (how to really care for clients), pay them fairly, and make the salon a good place to work. Let them suggest what clients need. If you value your team they will value your clients & they will reach targets naturally.” Do targets stress my staff, and how to do them right? A k Badia Your Monthly Guide to Salon and Spa Success ? Know Your Core Numbers: The Heartbeat of Your Salon’s Finances • What You Spend, Every Month: Let’s get real – you need to know exactly where every Dinar goes. This includes your rent, the salaries of your amazing team (don’t forget those essential visas and LMRA fees!), electricity, water, the products that create magic, training to keep you ahead, getting the word out (marketing!), and even your accountant and VAT. Every single cost counts! • Money Coming In: Where the Magic Happens! How does your salon bring in the revenue? Be specific – haircuts, colours, relaxing massages, nails, retail products, home service. Listen closely: Your income MUST cover ALL those costs – no exceptions! Setting Smart Money Goals: Your Easy Steps to Financial Success Think about what truly matters for you and your salon’s future: • Your Salary: Your Reward for Hard Work! How much money do you want to take home each month for your dedication and vision? • Making Your Salon Even Better: This is about having the funds for those exciting new upgrades, essential equipment, and creating an even more exceptional experience for your valued clients. Plus, saving for a bright future! Your Simple Formula for Monthly Success: Your Total Target = All Your Costs + Your Salary + Salon Improvement Money + Savings Money Advice: Set a Target That’s Right for YOU! Really look at your pricing strategy, the talent of your team, the quality of your services and the high standards you uphold. Be realistic! Here’s an Example That Works for Everyone: If your target is BD20,000, break it down into daily goals by dividing by 30. Then, boost your expectations by around 30 percent to 50 percent for those peak, busy days (Wednesday to Saturday) when your salon is buzzing! Setting Goals That Empower Your Incredible Team! Every member of your team is key to your salon’s financial success. Here’s a straightforward way to set their individual goals: • Know the Real Cost of Your Talented Team: This isn’t just their salary. It includes everything you invest in them – their visa, accommodation, transport and professional uniforms all cost! • Set Their target This ensures they’re contributing to covering their costs and helping the salon grow. - For most fantastic salons: Multiply their Total Cost by 3.5. This is a classic Salon industry use to ensure they are generating enough. - For your high-end salon: Multiply by 4.5 or even higher! Your standards and operating costs are different, so their contribution needs to reflect that. Let’s See It in Action: • A skilled stylist costs you BD500 each month (total cost includes). • Their monthly income goal in many successful salons could be: 500 BD x 3.5 = 1750BD. But remember, for your high-end salon: That same stylist needs to aim for at least BD500 x 4.5 = BD2250. Different market, different expectations different costs! Don’t Ever Forget Your P&L: Your Salon’s Monthly check up! Think of your Profit & Loss statement as a simple, crucial report that shows you exactly how your salon’s money performed each month. Did you achieve a win (profit) or face a challenge (loss)? • Total Income: All the money that came into your Salon. • Total Costs: All the money that went out to keep things running. • Your Profit (or Loss) = Total Income – Total Costs Bottom Line: Understand This, Live by This, Grow Your Salon! This basic financial knowledge is non-negotiable for running your salon with a clear vision and achieving sustainable success! BEAUTY
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