How to create a financial forecast for an eyelash extension salon?

Creating a financial forecast for your eyelash extension salon, and ensuring it stays up to date, is the only way to maintain visibility on future cash flows.
This might sound complex, but with the right guidance and tools, creating an accurate financial forecast for your eyelash extension salon is not that hard.
In this guide, we'll cover everything from the main goal of a financial projection, the data you need as input, to the tables that compose it, and the tools that can help you build a forecast efficiently.
Without further ado, let us begin!
Why create and maintain a financial forecast for an eyelash extension salon?
In order to prosper, your business needs to have visibility on what lies ahead and the right financial resources to grow. This is where having a financial forecast for your eyelash extension salon becomes handy.
Creating an eyelash extension salon financial forecast forces you to take stock of where your business stands and where you want it to go.
Once you have clarity on the destination, you will need to draw up a plan to get there and assess what it means in terms of future profitability and cash flows for your eyelash extension salon.
Having this clear plan in place will give you the confidence needed to move forward with your business’s development.
Having an up-to-date financial forecast for an eyelash extension salon is also useful if your trading environment worsens, as the forecast enables you to adjust to your new market conditions and anticipate any potential cash shortfall.
Finally, your eyelash extension salon's financial projections will also help you secure financing, as banks and investors alike will want to see accurate projections before agreeing to finance your business.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

What information is used as input to build an eyelash extension salon financial forecast?
A eyelash extension salon's financial forecast needs to be built on the right foundation: your assumptions.
The data required to create your assumptions will depend on whether you are a new or existing eyelash extension salon.
If you are creating (or updating) the forecast of an existing eyelash extension salon, then your main inputs will be historical accounting data and operating metrics, and your team’s view on what to expect for the next three to five years.
If you are building financial projections for a new eyelash extension salon startup, you will need to rely on market research to form your go-to-market strategy and derive your sales forecast.
For a new venture, you will also need an itemised list of resources needed for the eyelash extension salon to operate, along with a list of equipment required to launch the venture (more on that below).
Now that you understand what is needed, let’s have a look at what elements will make up your eyelash extension salon's financial forecast.
The sales forecast for an eyelash extension salon
The sales forecast, also called topline projection, is normally where you will start when building your eyelash extension salon financial forecast.
Creating a coherent sales projection boils down to estimating two key drivers:
- The average price
- The number of monthly transactions
To do this, you will need to rely on historical data (for an existing business), market research data (for both new and existing eyelash extension salons), and consider the elements below:
- Seasonal trends: Depending on the time of year, the demand for eyelash extensions may vary. For example, during wedding season, more clients may be interested in getting extensions for their special day, leading to an increase in average price and number of transactions.
- Competition: If there are multiple eyelash extension salons in the area, your average price may be affected as you may need to lower your prices to remain competitive. This could also impact the number of monthly transactions as clients may choose to go to a different salon with lower prices.
- Referral programs: Offering a referral program to your clients can increase the number of monthly transactions as they may be more likely to recommend your salon to their friends and family. This could also lead to an increase in average price if the referred clients opt for more expensive services.
- Economic conditions: Economic factors such as a recession or a booming economy can affect the average price and number of transactions for your salon. During a recession, clients may be more price-conscious and opt for less expensive services, while a booming economy may lead to an increase in disposable income and willingness to spend on luxury services like eyelash extensions.
- Innovative services: Introducing new and innovative services, such as lash lifts or colored lash extensions, can attract more clients and increase the average price of your services. This can also lead to an increase in the number of monthly transactions if clients are interested in trying out these new services.
After the sales forecast comes the operating expenses budget, which we will now look into in more detail.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The operating expenses for an eyelash extension salon
The next step is to estimate the expenses needed to run your eyelash extension salon on a day-to-day basis.
These will vary based on the level of sales expected, and the location and size of your business.
But your eyelash extension salon's operating expenses should include the following items at a minimum:
- Staff Costs: This includes salaries, wages, and benefits for your staff members. You will need to budget for hiring and training new lash technicians, as well as paying your existing staff.
- Accountancy Fees: As a business owner, you will need to hire an accountant to help you keep track of your finances, file taxes, and provide financial advice. This will be an ongoing expense for your salon.
- Insurance Costs: It is important to have insurance to protect your business and your staff. This includes liability insurance, workers' compensation, and property insurance.
- Software Licenses: You will need to invest in software to manage your appointments, inventory, and finances. This may include point-of-sale systems, bookkeeping software, and scheduling software.
- Banking Fees: Every time you process a transaction or deposit money into your business account, you will incur banking fees. These can add up quickly, so it's important to factor them into your budget.
- Rent: Your salon will need a physical space to operate, and this will come with a monthly rent payment. This can vary depending on the location and size of your salon.
- Utilities: Your salon will need electricity, water, and possibly gas to operate. You will need to budget for these ongoing expenses.
- Supplies: This includes all the materials and products you will need to perform eyelash extensions, such as lashes, glue, and cleansing solutions. You will need to replenish these supplies regularly.
- Marketing and Advertising: To attract new clients and keep your current ones coming back, you will need to invest in marketing and advertising efforts. This can include social media ads, flyers, and promotions.
- Professional Memberships and Certifications: As a lash technician, you may want to join professional organizations and obtain certifications to improve your skills and credibility. These will come with membership and certification fees.
- Cleaning Services: Keeping your salon clean and hygienic is essential. You may want to hire a professional cleaning service to help you with this task.
- Office Supplies: You will need basic office supplies such as paper, pens, and printer ink to manage your business operations.
- Taxes: As a business owner, you will need to pay taxes on your profits. It's important to consult with your accountant to estimate and budget for these expenses.
- Credit Card Processing Fees: If you accept credit card payments, you will need to factor in the fees charged by the credit card companies for each transaction.
- Training and Education: To keep up with the latest techniques and trends in eyelash extensions, you may want to invest in ongoing training and education for yourself and your staff.
This list is, of course, not exhaustive, and you'll have to adapt it according to your precise business model and size. A small eyelash extension salon might not have the same level of expenditure as a larger one, for example.
What investments are needed to start or grow an eyelash extension salon?
Your eyelash extension salon financial forecast will also need to include the capital expenditures (aka investments in plain English) and initial working capital items required for the creation or development of your business.
For an eyelash extension salon, these could include:
- Equipment: This includes all necessary equipment for the eyelash extension process, such as tweezers, adhesive, lash trays, and under eye patches. It also includes equipment for sanitation, such as disinfectants and sterilization tools.
- Furniture: You will need furniture for both the waiting area and the service area. This can include chairs, tables, and storage units for supplies. You may also want to invest in comfortable seating for your clients, such as reclining chairs or massage chairs.
- Decor: The appearance of your salon is important in creating a relaxing and professional atmosphere for your clients. This may include purchasing wall art, plants, and other decorative items to enhance the overall ambiance of your salon.
- Lighting: Proper lighting is crucial for the eyelash extension process. You will need to invest in bright, natural lighting for your service area, as well as adjustable lighting for each individual workstation.
- Technology: In order to keep up with the latest trends and techniques in the industry, you may want to invest in technology such as lash mapping software and digital appointment booking systems. You may also need a computer and printer for administrative tasks.
Again, this list will need to be adjusted according to the size and ambitions of your eyelash extension salon.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The financing plan of your eyelash extension salon
The next step in the creation of your financial forecast for your eyelash extension salon is to think about how you might finance your business.
You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.
Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.
Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.
What tables compose the financial plan for an eyelash extension salon?
Now let's have a look at the main output tables of your eyelash extension salon's financial forecast.
The forecasted profit & loss statement
The profit & loss forecast gives you a clear picture of your business’ expected growth over the first three to five years, and whether it’s likely to be profitable or not.

A healthy eyelash extension salon's P&L statement should show:
- Sales growing at (minimum) or above (better) inflation
- Stable (minimum) or expanding (better) profit margins
- A healthy level of net profitability
This will of course depend on the stage of your business: numbers for an established eyelash extension salon will look different than for a startup.
The projected balance sheet
Your eyelash extension salon's projected balance sheet provides a snapshot of your business’s financial position at year-end.
It is composed of three types of elements: assets, liabilities and equity:
- Assets: represent what the business possesses including cash, equipment, and accounts receivable (money owed by clients).
- Liabilities: represent funds advanced to the business by lenders and other creditors. They include accounts payable (money owed to suppliers), taxes payable and loans from banks and financial institutions.
- Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The cash flow projection
The cash flow forecast of your eyelash extension salon will show how much cash the business is expected to generate or consume over the next three to five years.

There are multiple ways of presenting a cash flow forecast but from experience, it is better to organise it by nature in order to clearly show these elements:
- Operating cash flow: how much cash is generated by the eyelash extension salon's operations
- Investing cash flow: what is the business investing to expand or maintain its equipment
- Financing cash flow: is the business raising additional funds or repaying financiers (debt repayment, dividends)
Your cash flow forecast is the most important element of your overall financial projection and that’s where you should focus your attention to ensure that your eyelash extension salon is adequately funded.
Note: if you are preparing a financial forecast in order to try to secure funding, you will need to include both a yearly and monthly cash flow forecast in your eyelash extension salon's financial plan.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Which tool should you use to create your eyelash extension salon's financial forecast?
Using the right tool or solution will make the creation of your eyelash extension salon's financial forecast much easier than it sounds. Let’s explore the main options.
Using online financial projection software to build your eyelash extension salon's forecast
The modern and easiest way to build a forecast is to use professional financial projection software such as the one we offer at The Business Plan Shop.
There are several advantages to using specialised software:
- You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
- You have access to complete financial forecast templates
- You get a complete financial forecast ready to be sent to your bank or investors
- You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
- You can create scenarios to stress test your forecast's main assumptions
- You can easily update your forecast as time goes by to maintain visibility on future cash flows
- You have a friendly support team on standby to assist you when you are stuck
- It’s cost-efficient and much cheaper than using an accountant or consultant (see below)
If you are interested in this type of solution, you can try our forecasting software for free by signing up here.
Hiring a financial consultant or chartered accountant
Hiring a consultant or chartered accountant is also an efficient way to get a professional eyelash extension salon financial projection.
As you can imagine, this solution is much more expensive than using software. From experience, the creation of a simple financial forecast over three years (including a balance sheet, income statement, and cash flow statement) is likely to start around £700 or $1,000 excluding taxes.
The indicative estimate above, is for a small business, and a forecast done as a one-off. Using a financial consultant or accountant to track your actuals vs. forecast and to keep your financial forecast up to date on a monthly or quarterly basis will naturally cost a lot more.
If you choose this solution, make sure your service provider has first-hand experience in your industry, so that they may challenge your assumptions and offer insights (as opposed to just taking your figures at face value to create the forecast’s financial statements).
Why not use a spreadsheet such as Excel or Google Sheets to build your eyelash extension salon's financial forecast?
Creating an accurate and error-free eyelash extension salon financial forecast with a spreadsheet is very technical and requires a deep knowledge of accounting and an understanding of financial modelling.
Very few business owners are financially savvy enough to be able to build a forecast themselves on Excel without making mistakes.
Lenders and investors know this, which is why forecasts created on Excel by the business owner are often frowned upon.
Having numbers one can trust is key when it comes to financial forecasting and to that end using software is much safer.
Using financial forecasting software is also faster than using a spreadsheet, and, with the rise of artificial intelligence, software is also becoming smarter at helping us analyse the numbers to make smarter decisions.
Finally, like everything with spreadsheets, tracking actuals vs. forecasts and keeping your projections up to date as the year progresses is manual, tedious, and error-prone. Whereas financial projection software like The Business Plan Shop is built for this.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Use our financial projection templates for inspiration
The Business Plan Shop has dozens of financial forecast templates available.
Our examples contain a complete business plan with a financial forecast and a written presentation of the company, the team, the strategy, and the medium-term objectives.
Whether you are just starting out or already have your own eyelash extension salon, looking at our financial forecast template is a good way to:
- Understand what a complete business plan should look like
- Understand how you should model financial items for your eyelash extension salon

Takeaways
- A financial projection shows expected growth, profitability, and cash generation for your business over the next three to five years.
- Tracking actuals vs. forecast and keeping your financial forecast up-to-date is the only way to maintain visibility on future cash flows.
- Using financial forecasting software makes it easy to create and maintain up-to-date projections for your eyelash extension salon.
You have reached the end of our guide. We hope you now have a better understanding of how to create a financial forecast for an eyelash extension salon. Don't hesitate to contact our team if you have any questions or want to share your experience building forecasts!
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Also on The Business Plan Shop
- Example of financial projections
- How to create a sales forecast for a business?
- Financial forecast for a business idea
Know someone who runs or wants to start an eyelash extension salon? Share our financial projection guide with them!