Current Income Calculator

So we're going to move on now to the next part of this calculator which is working out your current income. And you will get to that through the next tab along the bottom which says Current income Calculator. Now this page is designed to give you a rough estimation of what your hourly rate is as a nail tech. And it's based on your current price and structure, the hours that you work and the number of clients that you currently treat. It then takes into consideration all of the other benefits that you would get if you were in payments employment, such as sick pay, holiday pay and pensions. Now this is really important because as a business owner, just because you have chosen to work for yourself and run your own business instead of being in employment and working for somebody else, doesn't mean that you lose access to all of these benefits. So things like sick pay, holiday pay, being able to save for a pension, instead it just means that it is now your responsibility to make sure that you are giving yourself these things and to make sure that these things are factored into your pricing. So let's say a big business that employees, staff is calculating its business costs and it's calculating its prices for its customers. It would factor in all of these things before doing so. And that's why it's important for you to do that too. Even if you feel like your business is only small, or even if it's only you within your business, it doesn't mean you don't get access to these benefits. It just means that you are in responsibility of giving yourself those things. Okay? And as a direct comparison, we've popped in here the current national minimum living wage. Now, we've based this on the uk. If you're living outside the uk, you just need to consider what might be different where you are and things like tax and stuff like that would all be different as well. But you can enter those bits in here so that they will amend for you. Now, we're going to fill this in based on an average of a four week period. And that is so that we can get a real fair and even reflection of your business. So you want to look over the last four weeks and then get your average pay week of what that is, because let's say one week you could be really busy, one week you could be quite quiet. So we want to look over a four week period and then work it out as an average per week. So we know that it's even. Now, in order to do this, you should have a booking system in place and on your booking system, it will have some reporting in there. So you should be able to go into your reporting and get these figures. If you don't have a booking system, you can still work this out, but you'll do it manually and you'll do that by taking a four week period in your books, adding those periods together based on like adding your number of clients together, adding your hours together, adding your income together and divided by four. So for example, to get an average of your number of clients, you would work out how many clients you had over a four week period and then you divide that by four because we're looking at four weeks. You would also do the same with the number of hours worked. So take the number of hours it took you to do all of those clients over a four week period and divided by four and look at your income over the month and divided by four. It's going to give you the averages. It's important that I also highlight that this financial tool is for illustrative purposes only. It should not be considered as financial advice. If you do want personalized financial guidance or advice, then please do consult a qualified professional or a financial advisor, because we are none of those things. Now, if you are a salon owner, this spreadsheet is going to help you too. If you are a salon owner where you rent out your space, then you should enter the amount of annual income from your renters in this box here. This box is just for you. If you don't own a salon, you will leave that box but blank. If you have a salon but you employ staff, then there are two ways that you can use this tool. You can either use it to calculate your personal current income. And to do that you would just enter all of the data to match what you currently work and ignore everybody else in your salon. Or you can work out the average current income per person across the whole salon. So to do this, you would just add the data together for everyone that works in your salon and then come to your averages that way. So we're going to work this all together. I'm going to continue filling this in based on the nail tech that I was before. So the nail tech, it was currently working in a salon, renting out a space. And I'm going to imagine that I am full time, but you can fill this in alongside with me based on what your current reality is. So you're going to start off with this white box here and you're going to add in your current average clients per week. So let's say for example, we I'm going to say I'm doing 18 clients per week. So you would pop in however many you are doing based on your average and then you would pop in here the amount of time that you are actually spending with your clients. So let's say those 18 clients took me in total 27 hours. And I also do admin all week, as do you. So your admin would include things like messaging, clients, doing your market and social media, working on the business, doing videos on the nail tech org, doing what you're doing right now. So all of those things would factor into your admin time. So things that are, that you are doing where you're working on the business but you're not necessarily sat with a client. So that would be say an additional eight hours that would be spent. Okay, so then that works out for us that our average time spent per client is 1.5, which means 1 1/2. So 1 hour 30. Now the average weekly income that I am earning based on the fact that I am this nail tech, so let's say I earn 637 pound 50 per week on average. You would also enter your average weekly wage in here, what you are making, which then tells you your client's average spend. So based on what I've entered here, every client on average is spending around 35 pounds 42. And if you are a salon owner, you put your annual income from renters in here. So let's say you earn, I don't know, let's keep it clean and say £1,000amonth from your renters. Then in here you will put the annual income from that. So that would be be £12,000 a year. Okay, so then I'm just going to take that out because I'm not a salon owner and then we're going to move down here. So in here you want to pop in your week's holiday or sick pay per year. So the number of weeks holiday that you get, sorry, your number of weeks holiday that you get if you are based in the UK and you are employees, is 5.6 weeks. So you might want to use that as an average. You might want to give yourself more holidays in that, that's totally fine, I'm gonna work off that and I'm gonna round it up to six. The reason I'm rounding up to six weeks is because I also want to factor in a couple of days sick per year as well. Because in reality we are human beings, we are going to get sick. If we work for ourselves, we don't necessarily get paid for that time that we have off. So we need to factor in the inevitable that there are going to be some days that we might not be able to turn up for work when we usually will be able to. So with that in mind, I'm just rounding that up to 6, which works out for me that based on me having six weeks holiday and sick pay, we would be working 46 weeks of the year. Okay. So it works out for me that based on what I've entered, my estimated annual income is £29,325. But we also then need to consider our outgoings. So our business outgoings have already been entered here based on what we entered in this spreadsheet here because it gave us our business outgoing total for the month and then it will times that by 12 and enter them in here already for us. That's super helpful. And what we've all also done to help you is add in an average cost of tools and it will work this out for you based on all of the data that you've put up here. So whether you're full time or part time or however many hours you do, or however many clients that you treat, we have popped in an estimation that is calculated on high quality products and tools for your services. So we've already given you an average of, based on your work and all of these hours and clients here, it will cost around £1200 for your tools and your products will cost you about £3,300 annually as well. Then if we move down here, we've already pre populated for you your holiday and sick pay based on what you entered in these boxes here. And based on what is being entered here, it's already worked out for you as well, a allowance for a pension. So this is what you should be saving for a pension which is 12.5%. Sometimes it can actually be more, but this is just an estimate. Also what you should be saving for tax based on all of this, which is 622 pounds and national insurance, so 226 pounds. So in total our annual outgoings for our business are £20,276 which leaves us with a profit per year of £9,048.62. Now if we come up here, this is going to give us our cost per client. So this of course factors in not just our product and tool cost which it's so easy for us now techs to just consider the cost of our products and tools. It's also working out the cost per client based on all of the other things that we have to pay out as now as now business owners. So all of these things in here, it's factoring in all of that that leads us to our total profit. So mine, based on my calculations here, my total profit per client is 10 pound 93. Which means that the important thing to understand is that currently based on all this data, my hourly wage include including admin is 7037 and including admin but after tax, pension and national insurance deductions is five pounds 62. And this is the hourly range that we should be looking at because we want to include our admin time. Like so many times we will look at our business as, you know, the time spent on our business as just the time that we are with clients. But you know as well as I do that you have so many other things to do in your business as well as just save your clients and be at that nail desk. You are putting so much other time into your business as well for admin, for social media, for respondents, clients and that needs to be factored into. So this is the important business reality number that you want to be looking at. It's your hourly reach includes an admin and should be after tax, pension and national insurance deductions as well. So as you can see here, mine's come up that based on what I'm currently doing and charging and all of those things, my current income and all of that, I'm actually earning £5 62 per hour as an hourly wage and that is under half, just under half of the national minimum living wage in the uk. So just something for me to be aware of at this stage, this is purely just an informatory exercise so you can start to understand what your current business reality is. If you are getting something similar, similar here or whatever it is that you've come up against after you put in all of your numbers is making you panic. Do not worry. This is just a current business reality. We've got all the tools to help you to understand what your actual business cost are and how you can make these changes effectively within your business. So do not worry. This is purely just to tell you what your existing reality is and a lot of us may find that we are sitting in a similar bracket as this right now.