So looking at our end of year costs vs profits this is our real world Net Income.
Lets break it down:
In case you’re not familiar with Excel those brackets around the net income indicate a negative number. Yes, overall last year we had a loss. That’s ok! First, we expected that to happen. Second, we know some of those expenses were an one time expense. Others were from choices we intentionally made.
Why would we intentionally make choices that decreased the chance of making profit? Because we are looking at the long term. Over 51% of that net loss was from rent. Instead of going the mobile route, we intentionally decided to rent a space in a thriving salon.
While renting a space is costing us more up front initially we do feel like it is also helping us grow faster. In a section to post later, 2024 has taken off like a rocket and we are getting a lot of clients from the salon side of the building. We also save on our time (not travelling) and unpacking / packing everything up. We feel the permanent spot gives more of a professional or luxury feel.
In a nutshell you could start a mobile business for about half the costs. By the time you purchase your tent, sprayer, solution, and all the little odds and ends you’ll need, you should realistically expect to pay around $2k to $2,500 to get started if you get decent supplies and not go for super cheap. If you opt to rent a space like us then expect to pay more. Also keep in mind this was from September to December not a whole years worth of expenses.
Thoughts, questions, comments?