If you want to start a successful aesthetics business, one of the most important tools you’ll need to have handy is a cash flow forecast.
It gives you a clear instant overview of your bank balance, your outgoings and your revenue. It helps you see exactly what you’re projected to spend to set up and keep your new aesthetic clinic running over the next 12 months, and how much you can expect to earn based on your predicted treatment sales.
Most importantly, it helps you see how much money you’ll need to start your own aesthetics practice.
And we’ve got a simple aesthetic business cash flow template to help you get started.
What is a cash flow forecast?
A cash flow forecast is a prediction of the money going in and out of your aesthetics business in the next 12 months. It’s a simple way to estimate how much you expect to make from treatments, and how much it’s going to cost you to run your business effectively.
It contains predictions of all your incoming cash: like treatment fees, product sales and any other investment (e.g. loans and grants). And all your outgoing cash: like the costs of supplies, room rental, insurance, marketing and utilities.
Your cash flow shows you exactly how your bank balance will look if you do X amount of treatments and spend X amount of money each month. This will help you see exactly what your profits could look like and when you expect to break even.
Working backwards, it will also help you see how much money you’ll need to start with if you want to open a successful aesthetic practice.
How to use the aesthetic practice cash flow template
Our basic cash flow forecast template is designed for any aesthetics business that is just starting up. Use it to get a top level overview of your anticipated costs and revenue for your new practice in the first 12 months of operations.
It’s a simple spreadsheet, where you can input your own figures. Change amounts like treatment sales or marketing costs to see how that impacts your bank balance.
The key fields are:
- Opening Balance – this is what’s in your bank account at the start of the month. This amount will obviously change depending on how much you spend and make each month.
- Cash In-Flow – this is how much money your practice makes from treatment and product sales, and any other money that goes into your bank account. When you know what you’re charging for treatments and how many clients you expect to have, you can adjust these figures.
- Cash Out-Flow – this is all your expenses. We’ve broken them down into a number of categories and included very rough predicted costs, but you can adjust these based on the prices you’re working to.
- Net Cash-Flow – this is how much is flowing through your business on any given month. It’s likely to be negative (numbers in brackets) during your first few months, as you spend more on set-up costs and start slowly with the number of clients and treatments.
- Closing balance – this is how much is left in your bank account at the end of each month.
We’ve assumed month 1 will be your set-up month. You’ll have high out-goings here as you spend on equipment, training, and set-up fees, and no income from treatment sales as your practice won’t be open.
Just download the template and start playing around with the figures. You can always add additional fields if you need to.
Get your aesthetic clinic cash flow template
When you’re ready to start planning out all the costs, revenue and predicted profits for your aesthetics business, our free cash flow forecast template is waiting.
It’s quick and simple to input your bank balance, predicted expenditure, and anticipated sales to see how your aesthetic practice will perform in the next 12 months.