Where Do You Start?
Creating a budget may seem daunting, but there are numerous tools and apps available to simplify the process. The Freelance Hairdressers’ Association (FHA) collaborates with several companies that offer excellent budgeting strategies and systems. These tools can help you track your expenses to ensure you work smarter, not harder. Remember, effective budgeting involves comprehensive tracking of all expenses. Depending on your freelance business and set up, here is a suggested list of what you should monitor:
This extensive list emphasises the importance of understanding your specific needs based on your unique business model — whether you’re a mobile hairdresser, chair renter or operate from a home studio.
Saving for Taxes: Understanding Tax Deductions and Setting Aside Funds
Tax can be a significant concern for freelancers, but it doesn’t have to be. To ensure you have funds set aside for tax payments and training expenses, you can set up a savings account and make regular deposits. This proactive approach helps you avoid the stress of a large tax bill. If you create a standing order from your business account to a savings account, you’ll be surprised how much you manage to save. By setting aside a portion of your income each month, you will create a fund for equipment upgrades, marketing initiatives and professional development.
Evaluating Your Progress: Reflecting on Achievements and Setting New Goals
Regular evaluation of your business is crucial, so sitting down at the end of each week or month to analyse your performance is a must. Take note of the number of clients you have done and the categories they fall into – ladies, gents, children, etc. Note the types of services provided and identify any key trends. This analysis helps you understand where to focus your efforts.
Measuring Success as a Freelancer
Success as a freelancer is highly individual. For some, it means fully-booked schedules, while for others, it’s about maintaining high earnings with fewer clients. At the end of the financial year, evaluate your growth by comparing your financial performance to previous years. This analysis will help you to see the impact of any increases to your expenditure, which, in turn, will guide you on when to increase your own prices. Although it’s nice to see your business doing well, there is still a lot of satisfaction knowing that your clients are happy, returning regularly and recommending you to their friends. That is certainly a measure of your success.
The Importance of Continuous Learning
Training is an ongoing necessity in the hairdressing industry. Covid has shown us the potential of online learning, but hands-on training remains irreplaceable. As the industry returns to in-person interactions, it’s crucial to continue investing in your skills and staying updated with the latest techniques and trends. Whenever you find yourself shying away from certain services, this is a good indicator of the training needed in that specific skill.
Maintaining a Work/Life Balance
Achieving a work/life balance is challenging but essential. I think the break we were given during Covid encouraged many people to evaluate their working ethics, which is great. I cannot stress enough the importance of setting boundaries; establishing set times for work and your personal life is crucial in maintaining this balance. We have to learn to say ‘no’ and not respond to clients outside of work hours.
In conclusion, financial management and growth in a hairdressing business require careful planning, continuous evaluation, strategic investment and support from organisations like the FHA with its freelance community. Setting aside funds for taxes and training – as well as maintaining a balance between your work and personal life – will ensure you can achieve long-term success and sustainability in your hairdressing career.
