Weathering the storms of life

With the hurricane approaching and we make plans and preparations for the Cirque buildings, it made us think about business planning for the storms of life.  Sometimes, these storms are literal like hurricane Ian!  More often though, the storms are personal like medical issues, family difficulties, or any number of things that can affect your business.  Today, we look at some basics about preparing your salon studio business for uncertain times.

Like any business, when you start out, you either have to have abundant capital or an abundant client base or some combination of the two to make things work.  After a while of being in business with your studio, it can be easy to take for granted the constant income stream that is generated by the services that you provide to clients.   This is until you have an issue and are not able to work in your studio and generate income.  While the income stops, the cost of business and life do not.  From your studio rent to mortgage, apartment or car payments, along with daily living expenses, the bills keep coming in like a high tide.

This brings up the question, do you have enough money set aside to weather the storms of life?   What is enough and how do you get there?  While there are many different approaches, a solid and proven method is provided by Dave Ramsey and his baby steps.  We have summarized the first three of his seven steps below that could help get you on more solid financial footing.  

Step one is to start an emergency fund of $1,000.  This will help you prepare for unexpected expenses without plunging you further into debt.  Once you have a $1,000 saved, move to step two which is paying off all of your debts (except for your home mortgage if you have one).   Start by listing all your debts (credit card, car, student loans, etc,) from smallest to the largest amount and then begin paying them off.   Once you have paid off all your debts, the next step is to complete the building of your emergency fund from $1,000 to three to six months of worth of living expenses and bills.  These steps can be tough at first but with commitment and determination, they can be accomplished and if you already have a plan in place, great!  

In closing,  you never know what storms of life are going to bring your way, but with the proper financial preparation you can endure and succeed in life and business.  It is our hope that all of our studio owners will have a successful long-term business at Cirque no matter what life brings your way.

-The Cirque Team