Cash Flow for Barbershops: A Monthly Checklist

You can be fully booked and still go broke. It happens more often than you'd think.

The barbershop that looks busy but closes six months later? Cash flow problem. The owner who can't pay themselves despite working 50-hour weeks? Cash flow problem. The shop that can't afford to fix broken equipment at the worst possible time? Cash flow problem.

Cash flow isn't complicated, but it requires attention. Here's a simple monthly system that takes 30 minutes and prevents 90% of financial surprises.

The 30-Minute Monthly Review

Set a recurring calendar event. First of every month. Non-negotiable. Here's exactly what to check.

1. Know Your Numbers (5 minutes)

Pull these three numbers:

• Total revenue last month: Everything that came in
• Total expenses last month: Everything that went out
• Net: Revenue minus expenses

That's it. If you don't know these numbers within 5 minutes, your bookkeeping system needs work.

2. Check Your Cash Position (2 minutes)

Look at your business bank account right now:

• Current balance: €_____
• Compared to last month: Up/Down by €_____

If your balance is going down month over month, you have a problem—even if you're "profitable" on paper. Profit is an accounting concept. Cash is what pays rent.

3. Review Upcoming Fixed Costs (5 minutes)

List everything you MUST pay in the next 30 days:

• Rent/Lease: €_____
• Utilities: €_____
• Insurance: €_____
• Loan payments: €_____
• Software subscriptions: €_____
• Employee wages (if applicable): €_____
• Taxes due: €_____

Total fixed costs: €_____

Now look at your bank balance. Is fixed costs covered? Good. Is there a comfortable buffer? Even better.

4. The "Oh Crap" Fund Check (3 minutes)

Do you have at least one month of operating expenses set aside in savings? This is your emergency fund—the thing that saves you when the chair breaks, the landlord raises rent, or a slow month hits.

• Target emergency fund: €_____ (one month of total expenses)
• Current emergency fund: €_____
• Gap to fill: €_____

If your emergency fund is below target, that's your first financial priority.

5. Pay Yourself (5 minutes)

Here's where most barbershop owners fail: they pay themselves whatever's left after everything else. That's backwards.

Set a fixed amount you pay yourself monthly. It doesn't have to be huge—it has to be consistent.

• My monthly salary: €_____
• Did I pay myself this month? Yes/No

If you can't pay yourself the amount you set, that's a red flag that needs addressing. Either expenses are too high, revenue is too low, or both.

6. Review Variable Costs (5 minutes)

These are costs that change based on business:

• Products/supplies purchased: €_____
• Marketing spend: €_____
• Repairs/maintenance: €_____
• Other variable costs: €_____

Are any of these surprisingly high? That's worth investigating.

7. Look Ahead (5 minutes)

Anything coming up in the next 60-90 days that will affect cash?

• Equipment that needs replacing?
• Annual insurance renewals?
• Tax payments due?
• Slow season approaching?
• Planned vacation (= no income)?

Write it down. Plan for it. No surprises.

The Simple Cash Flow Rule

Here's the formula that keeps barbershops alive:

Revenue – Expenses – Owner Pay – Taxes – Emergency Fund Contribution = Zero or Positive

If you're negative after all that, something needs to change.

When to Pay Yourself

Pay yourself first—but pay yourself appropriately.

Year One:

• Pay yourself enough to survive
• Most profit goes back into the business and emergency fund
• Don't expect a comfortable salary yet

Year Two and Beyond:

• Establish a consistent monthly salary
• Increase it only when the business can comfortably support it
• Take bonuses when cash flow is strong, not as regular income

Seasonal Cash Flow Planning

Barbershops aren't steady income year-round. Plan for it:

Typically Busy:

• Before major holidays
• Back-to-school season
• Wedding season (spring/summer)
• Before New Year

Typically Slow:

• January (post-holiday)
• Summer vacation periods
• Post-back-to-school (September-October)

During busy months, resist the urge to spend more. Instead, stockpile cash for slow months. The goal: your slow months should still be survivable without stress.

Warning Signs You Can't Ignore

If any of these are true, you need immediate action:

• Can't make payroll (including yourself) two months in a row: Revenue problem or expense problem—figure out which
• Using credit cards to cover operating expenses: You're borrowing from the future and it will catch up
• Bank balance consistently declining: Even slowly, this trajectory ends badly
• Avoiding looking at your numbers: The ostrich approach doesn't work

Tools That Help

You don't need complicated software:

• Separate business bank account: Never mix personal and business. Ever.
• Simple bookkeeping: Wave (free), QuickBooks, or even a spreadsheet
• Automatic transfers: Set up auto-transfer to savings for emergency fund
• Calendar reminders: For this monthly review and all payment due dates

The Tax Trap

New barbershop owners consistently underestimate taxes. When you're self-employed, no one withholds taxes for you. That money you think is profit? Part of it belongs to the tax office.

Rule of thumb: Set aside 25-30% of profit for taxes. Put it in a separate account and don't touch it.

Nothing kills cash flow faster than a surprise tax bill you can't pay.

Your Monthly Checklist (Print This)

Monthly Cash Flow Review - [Month/Year]

• Total revenue last month: €_____
• Total expenses last month: €_____
• Net profit/loss: €_____
• Current bank balance: €_____
• Month-over-month change: +/- €_____
• Fixed costs covered for next 30 days? Y/N
• Emergency fund at target? Y/N
• If no, amount to add: €_____
• Owner salary paid? Y/N
• Any unusual variable costs? Y/N
• Anything big coming in 60-90 days? Y/N
• Tax savings set aside? Y/N

Time spent: _____ minutes

The Bottom Line

Cash flow management isn't exciting. It's not why you became a barber. But it's the difference between a thriving business and a stressful one.

30 minutes a month. That's all it takes to stay ahead of problems instead of reacting to them.

Schedule your first monthly review right now. Your future self will thank you.