In this episode of the Independent Stylist podcast, host ⁠Jennifer Kenny ⁠discusses the importance of understanding profitability for business owners in the beauty industry.

She emphasizes the need for financial literacy and outlines the three key profit margins:

• Cost of Goods Sold (COGS)
• Operating Profit Margin
• Net Profit Margin

Jennifer also highlights the benefits of using QuickBooks to track these metrics and make informed decisions about pricing and services.

To Book A PROFIT POWER VIP Service - ⁠CLICK HERE⁠

Takeaways

• Profitability is crucial for running a successful business.
• Understanding your numbers is essential before making pricing changes.
• COGS represents the total cost of products used in services.
• Aim for a COGS profit margin of at least 80%.
• Operating profit margin is what's left after business expenses.
• QuickBooks can provide real-time insights into your profit margins.
• Net profit margin is your take-home pay after all expenses and taxes.
• Set aside 20-30% of income for taxes to avoid surprises.
• Categorizing services in QuickBooks helps identify profitable offerings.
• Focus on services that maximize your time and profit.

It had to be said. I’m tired of hearing other businesses coaches in this space predicting an Ai induced apocalypse while simultaneously trying to sell you their program to help you manage said apocalypse. 🤮 I’m here to help you adapt and innovate with an open and growth fueled mindset 💕 While I'll never downplay the overall concerns about how Ai could impact the world, it's here and I'm choosing to look at and find ways that it can benefit YOU, the people that I want to connect with and serve. You can find the Beauty Business Ai Lab HERE, it's the beauty industry's first ai resource and also contain's the beauty industry's first ai powered course, the new version of what was my Easy Money workbook and guide has now been fully updated to leverage ai to help you manage the money side of your business with lighting fast speed and ease without sacrificing quality. As a business coach, I prioritize trust and service. That's why I've paused the Salon Suite University program to incorporate AI tools that enhance value and align with current technology. I've also launched the Beauty Business AI Lab to help you grow your business through AI. Be the first to know about the refreshed Salon Suite University Labs when they're available by clicking HERE

Now that anyone can pay to have the blue check mark and be meta verified, is it worth it for your salon suite or booth rental business? Here are some things to consider before taking the plunge! Join the shampoo society here connect with me on Instagram @ IndependentStylistPodcast and on tiktok