Management / Finance

Work it out – what's the most you can earn in a salon without expanding?

2 min

Work it out – what's the most you can earn in a salon without expanding?


The problem with ambition sometimes, is that we only think about the end-goal. The Range Rover and country mansion and chain of award-winning salons. And that’s great, but you have to figure out how to get there. You need to set measurable realistic goals that you can work towards.

Do you know your maximum business potential figure? Or as I like to call it the ‘dream figure’. What I’m really asking you here is, ‘What’s the most you can earn in a salon right now without expanding?’. If you can make the most of what you have now, then moving onto the next stage is easier and it will certainly feel more achievable.

Your long term goal will be to work towards achieving your maximum business potential figures. This won’t happen overnight, this week, month or even maybe this year, but it’s what we should strive towards in the long run.


So what’s your number?

To calculate your figure, answer the following questions:

  1. How many people work in the business?
  2. How many hours do they work?
  3. How many days are you open a week
  4. What’s the average cost of your hour long treatments?


Working out your potential

Now we take the hours worked and multiply by the average cost of the treatment.

We then multiply that figure by 4.3 (number of weeks in the month) and then multiply it by 12 for months of the year to get my maximum business potential figure for the year.

Let’s take Sarah as an example. She owns and runs a beauty salon by herself. (works the same way for hair salons too)


Hours worked a day = 8

Average cost of the treatment (or style) = €40

8 by €40 = €320 daily

320 by the 5 days worked gives us = €1,600 per week

1600 by 4.3 weeks in the month = €6,880 for the month

€6,880 by 12 months = €82,560 for the year!



Think about the potential – that figure does not take retail into account.


Even if Sarah sold a €30 product to two clients a day, that’s €15,480 extra a year. Add that to her treatment figures and she has €98,040 for the year- AMAZING! And this is a one person business.

Okay, so this only takes turnover into account and doesn’t take any overheads such as rent or marketing into account but growing your revenue ensures you’ll absorb costs without decimating cash-flow.

Even still these figures are quite staggering, and yes there based on treatments back-to-back everyday you’re working but that’s why they’re called ‘maximum potential figures’.

Regardless these figures are inspiring to look at and very motivating and in the midst of your hectic day, isn’t it nice to think what potential is at our fingertips and with a little hard work and focus. that it isn’t out of our reach to achieve these figures and reach our full business potential.


Caroline Quinlan is the head trainer at Phorest and has 10 years experience in running salons plus sales training with a World leading cosmetics company. If you have a question for Caroline, email her right here: or leave a comment below.


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