Recently, Muade Okrah Co-Founder and CEO of Bonnti joined us for an Education Episode and she discussed key takeaways to grow and build your business. Below are just some of the highlights.
Set your goals based on profit. How can you increase your revenue?
- Increase your customers
- Increase your pricing
- Increase what you are offering (products, programs) and diversify your revenue!
Increase Your Customers: Marketing
The Biggest marketing advertising platforms for the beauty industry is Instagram. Maude calls this “The engagement game.” Engagement drives visibility. Instagram algorithms have changed and now saves are the measure of engagement.
What makes someone save your post?
Inspiration! The save button is the new Pinterest pinning. People are looking for quick how-to tips to help them in between appointments.
What is your brand? What do you do well? What are you known for?
If you know what you do well, it helps build your brand. Build your social content based off of what you are good at (color, balayage, barbering, etc)
Increase Your Pricing
When you decide to increase your pricing you need to take into consideration your market and your costs. Your costs are products, rent, your personal salary, equipment cost, etc. A little can go a long way! For example, if a stylist increases their services by just $7:
5 services a day x 5 days week
$750 more a month
$9,000 more a year
100% retention
Bookkeeping and goal setting can help you make more money. This helps you to realize what you are spending money on and is it worth the spend? Are you getting profit from it? It makes you look to see if you can cut expenses if a goal is to save a certain amount a month.
Is your salary a line item? Make your salary a line item!
Tax Deductions
(Always consult with a tax advisor or consultant.)
- Products and Tools- what you use for services.
- Equipment you buy or rent including chairs, mirrors, cash registers
- Clothes- clothing that you buy for work, smocks, aprons, capes. Dry cleaning bills
- Business cards, flyers, service menus
- Promotional and branded items
- Online ads, website fees, ring lights, any content creation
- Travel and mileage
- Travel and lodging to trade shows
- Meals for site events
- Candy for clients
- Meals where you discuss business
- Lease payment for your suite
- Phone and Booking Tools
- Your cell phone bill, Square, etc
- License and Business Fees
- Continued Education
- Subscriptions to beauty magazines
- Capital Expenses: If you opened a business this year, you can expense the cost to start up your business (advertisements, buying equipment, launch parties, etc) This is what you spend BEFORE you open.
Suite Elite, if you’d like to watch the Education Episode, log into your Suite Elite Member website and click on the Education box.