Issue link: https://www.ahpindiestylist.com/i/1511260
N ot a m e m b e r ? J o i n at a s so c iate d h a i rp rofe s sio n a ls .c o m 61 Group to be a leading provider of financial education and resources for the beauty industry—to be a safe space for learning without judgment or shame and to create awareness of how to grow wealth and protect our income," she says. "Building a healthy career takes strategy, grit, and business planning. This profession can look deceivingly glamorous from the outside, but anyone who's made it knows it takes a lot of hard work." FINANCIAL STEPS FOR THE HAIR PROFESSIONAL It doesn't matter what career you step into, setting yourself up for financial success requires education, discipline, and an ability to think with a forward mindset versus an "in the moment" mentality. In other words, you need to equip yourself with knowledge and remain steadfast in your determination to plan, budget, save, and invest in order to build sustainable and steady long-term success. "When we start our careers, we are actively building to get to the point of being a busy stylist or salon owner, and once we get there, we often plateau and start to decline," Manukyan says. "We don't account for inflation and our own physical decline, or [potentially] making less and less money every year. Understanding that long-term planning when we start is essential for long-term success." Here are some steps you can take right now to set yourself up for financial success as a hair professional. Step 1: Understand Your Income and Expenses Ratio Determine how much money you're bringing in every month and how much money is going out. This is the foundation of everything you do and will inform each movement you make in your business. Your income is fairly straightforward—it's the amount your clients pay you (including tips) and anything you make selling products. Expenses start to get a little trickier since there are so many phantom costs you may not account for. Really get into the minutiae here, taking into consideration expenses like rent/booth commission fees, cost of supplies and equipment, salon upkeep and presentation, licenses and permits, advertising, business-related debt, membership dues, and taxes. Take your average monthly income (how much you make in a year divided by 12) and subtract your monthly expenses. This is your net profit—how much money is considered yours at the end of the day. It is vastly different from your gross income, which doesn't account for expenses or taxes. To make a profit, you must bring in more than you spend every month or year. If you're not making enough to turn a profit, it means you need to secure