The Budget: How to Launch a Beauty Business

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The Budget: How to Start a Beauty Business

Financial goals for business:

Double income in the first year, with hopes to generate enough capital to expand to the makeup category.Andrea should first do research on the beauty market, figuring out how much money she needs to start the business—this is what we call capital. All financial sources come with their pros and cons. For example, traditional loans are appealing because you can remain the sole owner of your business, but you typically have to show financial statements and have a good credit score to qualify.

website is a great resource. Starting a business tends to take more time and money than what one initially scopes, so it’s always good to give a buffer. Andrea should stow away as much income as possible. Set up a profit-first account, stashing at least 10 percent of revenue per year, rather than putting it all towards business expenses. Andrea should also plan for the possibility of not being able to pay herself a salary for a few years.

 

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