Money Talk for Stylists: Cash In by Understanding Your Profits
OCT 3, 202416 MIN
Money Talk for Stylists: Cash In by Understanding Your Profits
OCT 3, 202416 MIN
Description
<p>In this episode of the Independent Stylist podcast, host <a href="https://jenniferkenny.mykajabi.com/" rel="ugc noopener noreferrer" target="_blank"><strong>Jennifer Kenny </strong></a>discusses the importance of understanding profitability for business owners in the beauty industry. </p>
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<p>She emphasizes the need for financial literacy and outlines the three key profit margins:</p>
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<ul>
<li>Cost of Goods Sold (COGS)</li>
<li>Operating Profit Margin</li>
<li>Net Profit Margin</li>
</ul>
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<p>Jennifer also highlights the benefits of using QuickBooks to track these metrics and make informed decisions about pricing and services.</p>
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<p><strong>Takeaways</strong></p>
<ul>
<li>Profitability is crucial for running a successful business.</li>
<li>Understanding your numbers is essential before making pricing changes.</li>
<li>COGS represents the total cost of products used in services.</li>
<li>Aim for a COGS profit margin of at least 80%.</li>
<li>Operating profit margin is what's left after business expenses.</li>
<li>QuickBooks can provide real-time insights into your profit margins.</li>
<li>Net profit margin is your take-home pay after all expenses and taxes.</li>
<li>Set aside 20-30% of income for taxes to avoid surprises.</li>
<li>Categorizing services in QuickBooks helps identify profitable offerings.</li>
<li>Focus on services that maximize your time and profit.</li>
</ul>
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