Not knowing what your breakeven point in business is will quickly lose you money. 

Having run Allure Lash and Beauty Bar since 2014, I know what it takes to run a profitable 7-figure lash business. My experience and business success (and losses) have taught me a great deal. 

Today, I could walk into a lash salon and immediately know if they are profitable. How do I know? By the number of services sitting on their menu board. I can also tell by the lash products and supply orders that come through Runway Lash Co. A thriving lash salon needs to place larger orders—that’s just fact. I’ve seen it firsthand in my business.

If your lash salon is struggling to get by, don’t beat yourself up. There’s no need to feel embarrassed either because, with a couple of tweaks to how you run your business, you can easily turn it around!

Step 1: Know your breakeven point. 

What is this? It’s the point where total cost and total revenue are equal, which means you “breakeven”. Knowing what this figure is helps you set your prices, and it’ll help you determine your profit margin (how much your business is actually making). 

Does it sound daunting? Does it make you cringe? I get it; numbers can feel confronting at first. However, when you know the facts, you’ll be empowered. You can then make business decisions around your services that will transform your business – and you can earn a lot more money.

If you don’t do it, you could be running your business at a loss. Or worse, you’ll continue to make very little money and always feel like you’re “struggling”.

 

Step 2: Review all your costs, and increase your service pricing at least every 12 months. Undercharging your services also devalues the industry as a whole. It diminishes the reputation of hundreds and thousands of lash business owners globally, who have invested years of training and a lot of money into their business. 

When you want the best products, premium equipment, and have the capacity to employ a team of highly-trained professionals—it’s expensive. However, if you’re a legitimate and professional business, you should easily afford these things and still, make a profit!

 

Step 3: Perform a breakeven analysis, or create a spreadsheet to track all of your costs. When you have your earnings along with your expenses all clearly laid out in front of you, it’s straightforward to see if you’re operating at a profit or loss.

There’s also a few online platforms and apps that can help you calculate this. Just Google.

 

Need further guidance on this topic? 

Jump into The Lash Business Lounge Facebook group, and leave me your question. I actively answer everyone’s questions inside the group each week. You’ll also be supporting fellow lash business owners with your query.