The Formula for Reaching Your Goal Income

Knowing the numbers and financial health of your business shouldn’t be overwhelming or something you put off until it’s too late. Knowing the numbers that make your business a success or failure are ESSENTIAL to running a lash business. Knowing these numbers EMPOWERS you to make informed decisions to grow your business into a business and a life that you love on your terms. In this lesson, we’re diving into how to get to your GOAL INCOME in your lash business. This is where you get to think about the POSSIBILITIES of your lash business. Be as wild or as conservative as you desire in what your goal income is, cause it’s your business. If you want to make six figures as a lash artist, you’ll need to break down what that looks like in your business and the steps needed to get there. If you want to work part time but make a full time income, what does that look like for your lash business… you’ll get the formula for that today AND I’ll also show you a way you can determine just exactly how many clients you need to reach that “fully booked” status and what you do from there. Be sure to grab the worksheet to fill out for your lash biz goal income. (If you missed the first part of this 2-part post, you will need to check that out first and complete that worksheet before continuing.  The below steps are based on numbers you’ll figure out in the first part! You can find the part 1 post here with a link to grab the worksheet.

ADJUST THE FORMULA FROM THE PREVIOUS WORKSHEET

Using the Goal Income Worksheet, we’ll break this number down to an average $ amount per client and how many clients you actually need to make this amount so you know when to close your books since you’ll be “fully booked” at that point.

FIXED + VARIABLE + NEW TAKE HOME

In this formula, you’ll add up your monthly fixed and variable expenses. Instead of using your bare minimum take home pay, I want you to add to that bare minimum take home pay an amount that would give you a comfortable lifestyle. Maybe it’s an extra $1000-2000 a month.

ADJUST TAXES

You’ll also need to adjust the amount of money you’ll need to set aside for taxes because if you start making really good money and are paying yourself more, you’re going to owe more taxes. You can always go back to this formula and adjust your take home income as you start to get busier and want to make more money or set a higher goal for your take home. Just always adjust your taxes as well.

EXAMPLE:  GOAL INCOME BREAKDOWN

 $7300 a month / 100 clients a month = $73 per client

$73 is the Average $ Amount Per Client to Reach Your Goal Income

So all we need is 100 clients at an average of $73 per client and we’re making our goal, right? That is correct only if your clients come back once a month for their fills. But most clients don’t go a full month – some do, but they’re more the exception than the rule. So what happens if your clients come back every 2-3 weeks for their fills, which is the industry standard? Let’s now determine how many clients you need to become “fully booked” because you’ve reached your goal income. Using your Goal Income Worksheet, figure out know how often your clients come back on average. Not the crazy ones who can go 5 weeks, and not the neurotic ones who come in every time they lose a single extension. What’s the average for your business? Bust out your client list and look at how often they return for their fills. Once you know, you will check whichever box applies to you.  What we’re doing here is determining how much of the month passes before a client comes back in for their fill appointment. If your clients return every 3 weeks, then you only need to build up enough fill clients for 3 weeks appointments because by week 4 of the month, the week 1 clients are coming back in for their fills. This part of the worksheet is just giving you a percentage of the month you’ll need to have clients for. You can either select single weeks or a range of weeks… whatever floats your boat. You now have the total number of fill clients you need in order to be

1. Fully booked AND
2. Reach your goal income

#GoalAccomplished…Now What?

Are you sighing with relief that you don’t need to hunt for hundreds of clients to fill your books?  You should be!!! But WAIT… What happens when you reach this number of clients… or if you get to even 80% of this # of clients? Should you

• Start increasing your hours and take on more clients?
• Close your books and just sit back and collect your money?
• Raise your prices and start marketing yourself to a higher paying clientele?

In my ever so humble opinion, C! This is how you continue to grow your business and your income. When you’ve reached your goal income, you can work harder to earn more by adding on extra hours to your current workload or work more days… you can sit back and keep status quo which is what those of you who haven’t raised your prices in years have chosen to do, OR you can raise your prices because there’s enough demand for your services that you can now increase your prices. And we’re not talking a $5 raise here. We’re talking a significant jump to get some of your current clientele to drop off. You want to plan to lose a percentage of clients by raising your prices by $15-20 so you can start to draw in a higher paying clientele who either never knew you had a cheaper price or who don’t care because your lash services are in demand and they have to have them. If you need more help figuring out your Goal Income, check out the video where I walk you through it step-by-step. Please comment, share or subscribe to ensure as a community we are being taken more seriously in our businesses and join me every Wednesday at 1:00pm Pacific time on The Lashpreneur Facebook page for more inspiration, tips, and strategies to start, build and grow a thriving lash business. Have a great one Tara Walsh The Lashpreneur