If you feel intimidated by money as a spa owner, you’re not alone. Many estheticians I speak with struggle with their relationship with money.
It doesn’t matter if you’re stressing out about your next rent payment or you are making money but can’t seem to keep any profit. Today, we’re going to stop the madness that plagues so many beauty business owners.
It’s time to send you down the path of sustainable profitability.
The first thing we need to do is to overcome the mindset hurdles and false beliefs we have around money. If we don’t address the problem, managing money will continually feel intimidating. These problems will be like holes in a bucket that keep leaking money no matter how much you make.
Start making the profits you deserve.
How To Improve Money Mindset As an Esthetician
To cultivate a healthy relationship with money, you need to think long-term and put yourself first. Here’s what I mean:
Not All Sales Are Equal
Any sale is money, right? If so, why not do it all? Why can’t you expand your offerings to sell anything and everything or take money from bad clients who drive you crazy?
Yet, chasing after short-term revenues can actually hurt your business in the long-run.
I’m a big fan of Michael Michalowicz’s The Profit First Formula and one of the stories in the book is a good illustration of how estheticians struggle with making money:
The author hired a leaf raker to clean his yard. The leaf raker did a good job and then said, “You have some leaves in your gutter, you want me to clean your gutter too?” “Sure!” said the author. Next, the leaf raker was on the roof and noticed some loose shingles so he offered to repair the roof. Then, he repaired the chimney too!
At first glance, this leaf raker might seem like a smart business owner by expanding his offerings… right?
Actually, he’s not. He just kicked himself out of the leaf-raking business! He has become a Jack of all trades and master of none. He’s made a sale in the short-term but he’s walking into a death trap that could destroy his business because he’s losing his positioning as a specialist.
Many beauty business owners make this same mistake. We keep adding services to our menus because ONE client mentions that “it may be nice to get such and such treatment.”
We scramble to get new training, new products, or spend more money on equipment. Other times, we see a colleague or competitor introducing a new service and we think we need to do that as well (FOMO, anyone?)
You want to establish a position that will allow you to effectively market your services. This will prevent you from spending money on products and equipment you don’t need. This change alone increases your chances for higher profits.
The esthetics industry has evolved and being a generalist isn’t the best way to command premium pricing or sustain VIP clients. Get over the misconception that you have to be everything to everyone and become a trailblazer instead!
The key to generating more profits is specialization. Become an eczema expert, or acne expert, or specialize in microcurrent… we have so many choices now and all you need to do is pick a modality that speaks to your heart.
The Old Accounting Formula Is Flawed
First, stop thinking that accounting is hard — this mindset prevents you from taking the first step to master your numbers.
Toss out the old school thinking. We have been taught that “Sales – Expenses = Profit” but the formula encourages the mindset of paying ourselves last. Why? Because it makes us think that “profit” (i.e., what goes into your pocket) is whatever is leftover. .
The “Sales – Expenses = Profit” formula puts us last as business owners, paying ourselves “the leftovers”… how would this make us feel about ourselves? This mindset puts ourselves last, telling the universe that we don’t matter.
Instead, write down this new formula: “Sales – Profit = Expenses.” This creates the mindset of putting yourself first and helps counter the self-worth issues faced by many small business owners.
Making sure you’re profitable in the long-run is the key to building a sustainable business. I explained in this article how you can implement the “Sales – Profit = Expenses” formula to transform your mindset and behaviors so you can prioritize you.
Your New Improved Relationship With Money
To improve your relationships with money, start with yourself. Remove misconceptions and old habits that are holding you back. Making a lot of money doesn’t mean you’re successful if you can’t control your expenses and prioritize paying yourself first.
Become an expert in the field of esthetics to earn more and fulfill your calling as an esthetician.
Building a profitable beauty business is a part mindset and a part skillset. We’ve got you covered when you join the Esthetician Inner Circle — you’ll learn the latest business and marketing skills while getting the support you need to strengthen your mindset and take positive actions.