The 7 biggest mistakes salon owners make that quietly eat their profit
None of these need an accountant to fix. Each one has something you can start today with a notebook, and how My Profits does it for you. Mistakes marked “A leak for you” came from your answers.
- 1
Counting what clients pay as profit
A leak for youA booked-out Saturday feels like a great week. But hair, products and your time took a big share before the client walked out.
Say you take KSh 18,000 on a Saturday. If extensions and products cost KSh 6,000, you made KSh 12,000, and that is before rent.
Do this today
For one week, write what each client paid and what you used on them. The difference is what you earned.
Or let My Profits do it
Home shows “Money in today” and “Today’s profit” side by side, after what each service used.
- 2
Charging for the chair but not the products
A leak for youRelaxer, shampoo, gel and extensions add up. If a service uses more than you think, you can be fully booked and barely earning.
Say a braiding job uses KSh 1,200 of extensions and you charge KSh 3,500. Priced by habit instead of by cost, a longer style can leave you little more than a short one.
Do this today
Pick your five most booked services. Write what each one uses and what that costs you.
Or let My Profits do it
Give every service its materials cost. My Profits takes it off each booking automatically.
- 3
Paying yourself with no record
A leak for youYou take money for transport, food and home as you need it. Without a record, the salon looks like it’s losing money when it is really paying you.
Say you take KSh 500 a day for yourself. That is about KSh 13,000 a month that never appears anywhere.
Do this today
Write every shilling you take for yourself in one place. Treat it as your salary.
Or let My Profits do it
Record “Money taken out” in two taps. Your profit stays honest and you see what you actually pay yourself.
- 4
Letting clients pay “next time”
A leak for youRegulars are the heart of a salon. But “next time” turns into next month, and then into never.
Say six clients each owe KSh 800. That is KSh 4,800, a full day of work, you’ve done for free until they pay.
Do this today
Write every unpaid service with the client’s name and phone number. Follow up every week.
Or let My Profits do it
“Owed to you” lists every client who owes you. Record part payments and send reminders from your phone.
- 5
Running out of product mid-appointment
A leak for youRunning out of relaxer or extensions with a client in the chair costs you the job and maybe the client.
Say you run out of your most-used extensions on a busy Saturday. Each client you turn away is KSh 3,500 gone.
Do this today
Count your top products every Monday. Reorder anything that won’t last the week.
Or let My Profits do it
Track product stock and set “Warn me when stock falls to…”. Home shows what to restock soon.
- 6
Not matching cash and M-Pesa at close
A leak for youClients pay cash, M-Pesa or card. Without a split, a missing payment or a short drawer goes unnoticed.
Say you took KSh 7,000 in cash and KSh 11,000 on M-Pesa today. A KSh 800 gap is easy to miss without those two numbers.
Do this today
Mark every payment as cash or M-Pesa. At close, check the drawer and your M-Pesa statement against them.
Or let My Profits do it
The end-of-day cash-up shows what you should have, split by how clients paid.
- 7
Forgetting rent and tax until they’re due
A leak for youRent, electricity, water and tax arrive whether the month was busy or quiet.
Say rent is KSh 25,000 a month. Setting aside KSh 1,000 each working day covers it without a panic at month end.
Do this today
List your monthly bills and due dates. Put a little aside every night.
Or let My Profits do it
Add running costs with due dates. Home shows what is due and how much to set aside for income tax.