How to Earn Extra Money
What if I told you, you could earn an extra money per month?
HOW YOU EARN MORE
One simple guide, so the numbers actually make sense.
Your Cover Target
For every £1 the salon pays in wages, roughly £3 needs to come in through treatments to cover rent, products, laundry, insurance and everything else that keeps the doors open. That figure is your Cover Target. Bonus starts once you pass it.
Your Cover Target is always wage multiplied by 3. The spreadsheet works this out for you once you type in your monthly wage.
Everything Above Target Earns 10%
Once your monthly treatment revenue passes your Cover Target, every pound above it earns you 10p. Here is what that looks like for both examples.
| Revenue Above Your Cover Target | Bonus Earned |
|---|---|
| £100 above target | £10 |
| £500 above target | £50 |
| £1,000 above target | £100 |
| £2,000 above target | £200 |
| £3,000 above target | £300 |
This table works the same regardless of your wage. The only difference is the starting point your bonus kicks in from.
"How Much Do I Need To Earn An Extra £300?"
Here is the same goal worked through for both examples, so you can see how your starting wage affects the total revenue you need to hit.
Example A, £800 Monthly Wage
Example B, £1,200 Monthly Wage
The £3,000 above target is always the same for a £300 bonus. The higher your wage, the higher your Cover Target, so the total revenue figure moves up with it.
Earning From Retail
You earn 10% commission on the first £200 of LA Skincare you sell each month and 20% on anything above that. The more you sell, the better the rate gets.
| Monthly Skincare Sales | Commission Earned |
|---|---|
| £100 | £10 |
| £200 | £20 |
| £340 | £48 |
| £500 | £80 |
"How much do I need to sell for an extra £300?"
Sound good?
Just by talking to clients, promoting facials a little more, you can make this happen.
Break it down
When you look deeper into what this involves it is not so scary and can be far easier than you can imagine.
Look below
Just by filling in your goals this chart will generate figures to help you simplify things.
When you know how little time this takes
Just by talking to clients a little more you can increase your revenue.
Imagine having continuous income after you have sold a product. Clients keep coming back more and more. This generates even more revenue week on week, month on month
How to use the chart
- Just enter your income goal into the top box.
- This is your yearly amount of money you want from retailing products.
- The next box then tells you how much your business needs to make to achieve this amount.
- How many weeks a year are you open or how many would you like to be? Put this number in the relevant box.
- A figure will generate to show how easy it is. As little as just 1 product per client, based on a few facials per week.
The best thing about this chart is that you can play about and see how much your salon would need to take to achieve your goals.
HOW YOU EARN MORE
One simple example all the way through, so the numbers actually make sense.
Your Cover Target
For every £1 the salon pays in wages, roughly £3 needs to come in through treatments to cover rent, products, laundry, insurance and everything else that keeps the doors open. That figure is your Cover Target. Bonus starts once you pass it.
Pop your own wage into the spreadsheet and your Cover Target works itself out.
Everything Above Target Earns 10%
Once your revenue passes your Cover Target, every pound above it earns you 10p. Here is what that looks like.
| Revenue Above Your £1,350 Target | Bonus Earned |
|---|---|
| £100 above target | £10 |
| £500 above target | £50 |
| £1,000 above target | £100 |
| £2,000 above target | £200 |
| £3,000 above target | £300 |
So for an extra £300 bonus you need £3,000 above your target. Add that to your Cover Target of £1,350 and you need £4,350 total treatment revenue that week.
Setting Your Own Goal
"How much do I need to bring in for an extra £300?"
Earning From Retail
You earn 10% commission on the first £200 of LA Skincare you sell each month and 20% on anything above that. The more you sell, the better the rate gets.
| Monthly Skincare Sales | Commission Earned |
|---|---|
| £100 | £10 |
| £200 | £20 |
| £340 | £48 |
| £500 | £80 |
"How much do I need to sell for an extra £300?"
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If you are a little unsure how to use this chart then here is a video…
Useful Finance Resources to help you manage your cash flow and profit.
Knowing how much to charge per treatment
This is a really super cool formula to help you understand costs involved in pricing.
When you have a pricing structure, you can always make sure there is profit being earnt in your business.
Many people think pricing is just about cost of product and some wages. There is so much more to it. This makes it easy. Take a look…
Understanding my salon outgoings at all times
Knowing how much you spend in your business is crucial to making profit in your business.
It is easy to get carried away with spending. Sometimes we have to spend. There are times when we could probably cut spending.
By knowing your costings makes this much easier and will keep a profitable business.
Know how much my salon needs to earn per hour
When you know how much your salon needs to take, down to the hour, it can really help you achieve your goals.
This can be a bit of a reality check. You can play around with this chart to see how much you would have to earn to work your dream hours.
It helps give you direction and create strategies to make this work.
Cash Flow Forecast planner for profit
Have you ever done this? Use the Salon Outgoings to help here. A cash flow forecast can help you predict earnings, based on your business.
Understanding when money will be coming in and out of your business is crucial.
Download our cash flow forecast to stay on top of your finances.