What is Profit and why is it important?

What is Profit and why is it important?

14 May, 2018

Profit is more than just a financial figure—it’s your salon’s reward for taking risks, making smart decisions, and delivering amazing service. It’s also a reflection of your business’s health, growth potential, and ability to survive in an ever-changing industry.

So, what exactly is profit?

Profit is what’s left after you subtract your total costs from your total sales.
It’s a sign that your hard work is paying off. If your salon consistently earns profit, it means you’re running your business wisely—and others will notice.

Formula to remember:
Profit = Total Sales – Total Costs

Or as we like to say:
Turnover is vanity, profit is sanity!

Why profit matters:

It measures success.
Profit is your return on investment and shows whether your salon strategies are really working.

It builds trust.
Banks, suppliers, and investors are more likely to support your business when you can show you’re profitable—or on the right path to getting there.

It funds your future.
Profits kept in the business (retained profits) can be reinvested to grow your team, upgrade your space, or expand your services.

It gives you control.
The more profit you make, the more choices you have. Whether that’s increasing staff incentives or launching a new retail range—it all starts with profit.

Let’s recap:

If you’re not keeping a close eye on profit, you’re not truly in control of your business. Learn how to master your numbers and turn a healthy profit—because that’s how you build a thriving salon.

Ready to get profitable?

Join The Successful Salon Formula or sign up for the Business Owners Retreat and discover exactly how to turn your salon into a money-making machine.