The Importance of a Written Budget

Blah Blah Blah, write your budget budget down, blah blah blah.

I find myself sounding like a broken record talking to groomers about the importance of writing a budget down.  I feel like the grooming instructor mentioning how your grooming is only as good as your bathing.  The truth of the matter is when I write down my budget, and I honestly do every month, I am signing a contract with myself.  I am holding my word of honor and integrity to myself.  I am agreeing that not spend more than what I've written down... by that same token I've also agreed to not make myself feel guilty for spending that money either.  

 

Your budget gives you permission to spend money. -Rachel Cruze

The grooming salon is a place of chaos, things are always changing, it is a dance between having a system and acknowledging that the system only works with flexibility... it's the same with your budget.  Let's assume you've decided you will only spend $200 this month on...

Read full Article...

Not your Piggy Bank

We've all done it... we are all guilty of it.

The company card in hand, at the gas station, out to dinner or at the store.  Is this really a business expense?  Probably not but we tell ourselves "this is part of being a business owner, the business paying for things".  It starts with a tank of gas, then it's towels that are actually for the house but you can always give the old ones to the shop... A laptop "for work".  You slowly start embezzling from your own company without realizing.  Some it's an occasional thing, some it becomes a way of life.  You've turned your business into your personal piggy bank which does not allow it to function as needed.

Is it because you are a bad person?  Obviously not.  Is it because you're lazy or dumb?  Of coarse not!  It's just so easy because there isn't someone to tell you no or to stop you.  If you were a manager of "Your Shop Inc" would you handle your business finances the way you do?...

Read full Article...

Appointment Book for your Finances

budgeting Mar 26, 2019

When talking about budgeting I see groomers cringe or wrinkle their nose.  We hear the word budget and we think of restrictions, what we are going to have to give up... instead of thinking about what we are gaining.

When I look at my budget I look at what it ALLOWS me to buy.  Does my budget this month say pb&j sandwiches or does it say filet mignon?  Does my budget say I can buy a third bravura or is it telling me I should probably wait a few months?

If you were to run a grooming salon without an appointment book, it would be pure chaos.  Can you imagine an appointment book where you know who is coming in today but sure when they're coming in and exactly what they're getting?  That is what happens when you make a "list" of bills and pay them as they come in vs actually doing a budget!  When you make an appointment book you say "I can do this many grooms in this many hours, if I want to take on a larger groom I need to plan more of my...

Read full Article...

Squirrel!

budgeting Mar 19, 2019

Blah Blah Blah, write your budget budget down, blah blah blah.

Have you ever seen the movie "Up"?  Doug the talking Golden Retriever is my spirit animal as I walk though trade shows or even when I'm at my local Target.  Shiny-object syndrome is a real thing and can cause groomers to overspend on tools and items they don’t need and won’t use.  How many times have you picked something up you had never heard of until that moment and now could not live without it?  

What would happen if you forced yourself to not buy that item for 24 hours, would you come back to buy it?  By creating a decision-making system ahead of time, you’ll be less likely to waste money on things you don’t need.

Take a quick look through your grooming drawers. How many clippers, scissors and extra blades did you buy over the years but have never used?  How about that hand stripping knife you bought but never got around to going to a class to...

Read full Article...

Break Old Money Habits

budgeting Mar 12, 2019

I have always hated the saying "old dog's can't learn new tricks".  We all know that's not true...  The old dog simply knows eventually you'll give up and probably give him the treat anyway.  You have trained your brain to avoid doing a budget!  Let's start by first making a conscious decision that you will take firm control of your personal finances first.  Business finances and implementing an accounting process can take a back seat for 90 days while you tackle your personal bills.  This may seem crazy but it's like learning to groom- if you don't understand the bath you have no hope of ever creating a perfect groom. Before starting your day, look at your appointment book, not just the breeds and haircuts but how much the grooms are, are there any upsells, are they being charged based on time?  Spend a few minutes each morning to make a note of your balances, your debt, and if you use the envelope system how much is in each envelope. The...

Read full Article...

Change your Denial Mindset

budgeting Mar 05, 2019

If you have ever had a toddler in your house, then you know the game of “if I close my eyes then I disappear.”  This is called Object Permanence in the world of Developmental Psychology; the kids don’t understand that the world around them still exists even if they can’t see it. That's why dogs are smarter than babies, they know that ball hidden behind your back is still there...  Cats are even smarter because they just don't care.

Now think about that once a year doodle, most often they've chosen to completely ignore their dog being slowly mummified in matts.  Somehow they assume we will have a magic wand to just wave to make it all better, but sadly we don't.  

What about your own financial feelings?  How do you act when you think about your personal budget or your business budget for your grooming salon?  If you don’t print out bank statements, reports or look at your financial statements, does that mean you're not...

Read full Article...

Budgets are Sexy

budgeting Feb 27, 2019

Think of the word “sexy” and what’s the first thing that comes to mind?

Maybe that's garter belts and lingerie, a bottle of wine and candles...  I often find myself fantasizing about a juicy double bacon cheeseburger that I indulge in while wearing pj pants binging on Netflix...  I have no doubt in my mind that a personal budget and/or  money reports for your business were NOT at the top of that sexy list! LOL

That’s true for most people. Ask nearly any groomer and they’ll all tell you they hate budgets and bookkeeping. No one hates burgers, even vegans have plant based burger alternatives. Think about how you feel right before biting into a burger, your mouth waters, you close your eyes, it's like the pottery scene in Ghost.  (if you don't know what I'm talking about, google that)  If that's not sexy I don't know what is...  You can train your brain to create that same sense of pleasure when you do your...

Read full Article...

Irregular Income

budgeting Sep 01, 2017

I don't make hourly or a salary, I make commission...
I have irregular income, so I cannot make a budget

Irregular Income (income changing week to week) is a normal issue for anyone making commission, it affects both 1099 Independent Contractors or W-2 Employees.  One week you may make $300, another week $700 and yet another week $1300 or more.  Most groomers know the Holiday Season is a bountiful time when we will make the most money all year.  Some groomers will actually double if not triple their income in the months of November and December.  

Guess what? That 'extra money' needs a plan so it can be squirreled away for January and February.  With the chance of some groomers seeing snow, extra rainy days, etc) they may see a drop in those months.

OK, That's great but how Do I budget for irregular Income?

Go back the last 3, 6 or 12 months worth of income depending on your employment and your patience to add numbers up.  Add your AFTER TAX income...

Read full Article...

You need a Budget

budgeting Aug 25, 2017

A budget stops all of us from being broke or impulsive, from buyer's remorse or “having to work 12 hour days” to pay for those impulse items.  Our jobs are too physically demanding to simply work for our basic living expenses.  Groomer's bodies are machines that will eventually burn out.

I'll just put this emergency on my credit card...

Living off debt or spending a paycheck as it comes in is like a dog chasing it's tail... Or a cat chasing a laser pointer. It's futile. We all know how insane a groomer's lifestyle is, we have all crawled home and right into bed because we were exhausted. There is this tugging feeling that we can “always make more” or “will catch up during the busy season”. We can't, we need a better plan.

As groomers we often are too tired to cook after a long day, we find items we "deserve" because fluffy bit us or we got anal glands in our hair.  The problem with this approach it is can spiral out of control...

Read full Article...

Survive. Live. Thrive. Bite Sized Goals

When we are on the Financial Journey we look at our goals in a Survive, Live & Thrive lens.


Survive is based on business over head. How much money do I need to make to "break even" and pay all the bills? Do you have low or high expenses? These are all the bills you need to pay monthly in your business, minus your own paycheck.

Live is based on my business expenses PLUS how much I would make to be content. You may be the type of person to be content with an extra $100 a week, $1000 a month or maybe $5000 a month. How much would you need to make to in order to feel like you accomplished something? Personally, when I break this down I always add an additional amount to save for tax. You can set aside 20-30% of gross profit. If you're the type who would rather give themselves a tax return or over estimate go with 30%. At 20% you may still owe a little more money depending on your profits for the year. (*cough talk to your tax professional*)

Thrive is where you go "how much...

Read full Article...
Close

50% Complete

Almost There!

Please just fill out your name and email, we respect your privacy.