Tax Return - quite disheartend

[Beckismassage]

Hiya,

I know it takes a while to build up clientelle and earn your money back but iv just sorted out all my outgoings and incomings and i wasnt too bad off still in a loss but bareable, now iv just added on all the milage that iv done for work, going to pamper events included, and im nearly a grand in losses!! And thats without my courses iv done. Is this normal for being in business for 13months? I really feel like giving it all up, as it stands i have 1 regular client. I advertise wherever possible and i do alot of events to try and get my name out there but its not been helping at all. I know there are alot of other therapists in the area but some of them have been trading less time than me and they have loads of "likes" on facebook and loads of clients. Im at a loss in what to do. Iv spent so much money getting everything i need and courses and i dont think it was really worth it

Sorry for the rant x

 

[MummyCat]

Hi there!

I dread to think what mine is going to be like, I've been self employed for nearly a year now (December will be 1 year).

I'm constantly buying new nail products, but not excessively, I've never paid for advertising apart from business cards and leaflets.

However, from what I've heard, it takes at least 2 years to break even and to make a proper profit.

Also, Facebook isn't the be all and end all! In fact, I think it counts for nothing!

Hardly any of my clients are on Facebook...they're busy women without time to be faffing around on there...they love their nails, tip me and rebook...thats all that matters to me.

So don't worry what others are doing on facebook, just concentrate on yourself Xx

 

[tigerlil]

I have also just started off and finding the same problem.

Quite interested in what works for others.

Sent from my GT-I9505 using SalonGeek mobile app

 

[mally123pink]

Please please please don't feel bad!
Training is an investment, it may have brought this years figures down but training will last you a lifetime and will earn you extra money next year and the year after that and the year after that without the cost because it has already been paid out.
I have major road works outside my salon that has been there since March and not due to finish till the end of November so I know this year I will be taking a loss, but next year I will be coming back with a bang!!

Be positive, feel positive and share share share on facebook!!

 

[Beckismassage]

Thanks everyone. Sorry for my little rant, i think im just shocked that the milage x £0.45 turned out at way more than i ever thought it would. Think id be better opening up a home salon lol (thats my goal when i earn enough) x

 

[Steph86]

Yes dont panic, think I was just over a couple of grand in loss my first tax return... Every penny I earned I spent back in to the business, buying a better range of colours etc. upgrading my kit & so on. The next year I just kept on top of stock, On average it takes 3 years for a new business to make money. My 2nd tax return 18 months in I was just £130 away from making a profit. But the figures totalled up was almost eye watering! But its heading in the right direction now so Im happy, this year ive added waxing & plan on adding another service before xmas.

With the milage, you get to earn that money back tax free so its not all bad, although yes it does add up over the year.

Xx

 

[Chrysalis]

Hi
I think in this industry yes it's normal as a rule of thumb be thinking,
1st year your investing in business so it takes all your money,
2nd year it's looking after itself financially,
3rd year it's looking after itself and you financially.

Very crude analogy and some people in different business sectors would expect to be making money immediately. But I find this industry is slower.

 

[Verve Designs]

It's not normal no. It's better than normal as most small businesses have folded in that time!

One thing a lot of my "9-5" friends and family think is that being self-employed is a license to print money and wriggle out of paying tax- they couldn't be more wrong.

Keep doing what you're doing, keep building a clientele and put up with the first couple of years when you're building your business. It's perfectly normal.

(However, watch the outgoings! the less you spend, the less you have to work!)

 

[virtues2011]

Hi
I think in this industry yes it's normal as a rule of thumb be thinking,
1st year your investing in business so it takes all your money,
2nd year it's looking after itself financially,
3rd year it's looking after itself and you financially.

Very crude analogy and some people in different business sectors would expect to be making money immediately. But I find this industry is slower.

This is the rule of thumb across the board not just this industry.

Sent from my GT-N7100 using SalonGeek mobile app

 

[virtues2011]

Hiya,

I know it takes a while to build up clientelle and earn your money back but iv just sorted out all my outgoings and incomings and i wasnt too bad off still in a loss but bareable, now iv just added on all the milage that iv done for work, going to pamper events included, and im nearly a grand in losses!! And thats without my courses iv done. Is this normal for being in business for 13months? I really feel like giving it all up, as it stands i have 1 regular client. I advertise wherever possible and i do alot of events to try and get my name out there but its not been helping at all. I know there are alot of other therapists in the area but some of them have been trading less time than me and they have loads of "likes" on facebook and loads of clients. Im at a loss in what to do. Iv spent so much money getting everything i need and courses and i dont think it was really worth it

Sorry for the rant x

Don't get so caught up in the facebook likes issue. .. you can pay to have likes, there are thousands of "like ladders" just people liking pages hoping to get a return. Probably a hairdressing/beauty page with 300 likes 35 may well be customers. . Because you see lots of likes it doesn't mean that the business is busy or profitable!

Sent from my GT-N7100 using SalonGeek mobile app

 

[EmJ]

I'm in my second year and have done 2 tax returns so far, both making a small profit, judging by my 6months of books so far this year is a much much better year and I will actually make a decent profit! I've been taking quite a lot but also been spending a lot on training and products. I wouldn't worry yet, it will take time to build up x

 

[Chrysalis]

Remember profit is what's left after you've taken earnings!

 

[Martin Duffy]

Don't get so caught up in the facebook likes issue. .. you can pay to have likes, there are thousands of "like ladders" just people liking pages hoping to get a return. Probably a hairdressing/beauty page with 300 likes 35 may well be customers. . Because you see lots of likes it doesn't mean that the business is busy or profitable!

Sent from my GT-N7100 using SalonGeek mobile app

Indeed, and vice-versa, I only have 21 likes, yet I haven't had a quiet period in years, with an average wait for a free appointment being about 2-3 weeks! Most of my clients aren't even on Facebook as they're all 'ladies what lunch"!