Self-Funded by Force-Here’s What It Means to be a Self-Funded Esthetician
In case you missed my story I am a self-funded esthetician. I was forced into financing my esthetics studio with my own capital after receiving tons of rejection letters from banks and finding no angel investors willing to invest in my vision. I was fortunate to receive some grant funding along the way but in the beginning, I was primarily self-funded. There are two types of self-funded estheticians: self-funded by force and self-funded by choice. Individuals that are self-funded by choice may use personal savings, inheritance, or investment returns to finance their business. There personal financial resources are consistent, and as long as other economic factors are ideal (i.e. market trends, supply chains, and the economy) there business will grow. Individuals that are self-funded by force on the other hand have limited personal savings to pour into their business and lack consistency with cash flow. This impacts the rate at which their businesses grow and succeed. Most of my story revolves around being self-funded by force so, if any of what I have shared so far sounds familiar or interesting, keep reading for more insights.
Self-Funded by Force
When I started my esthetics journey God placed a very big vision into my mind’s eye, but limitations with my credit and high debt-to-income ratio made it difficult for me to see how that vision would come to life. Being a self-funded esthetician isn’t exactly easy, here are some of the issues I have had to deal with:
Working a full/part time job.
Since I did not have excess cash flow I went in and out of working part-time jobs to earn the capital needed to open, operate, and maintain my business.
Limitations on hiring employees
Being self-funded put limitations on my ability to hire employees. I usually opt to hire Independent Contractors/1099 and freelancers.
Wearing several hats
With financial limitations on hiring, I wear multiple hats in my business. I oversee my appointment dashboard, make follow-up calls, and hire all independent contractors.
Delaying large purchases
Big ticket equipment purchases have to be planned for. I plan for big ticket items, sometimes it has taken years for me to make a large purchase. I also have to look at cost efficient alternatives that match the budget needs of my smaller esthetics studio.
Broader Timelines
I have had to adjust my timelines for meeting various business milestones. I am a small business owner, a wife, and mother. I have to be honest with myself about what is humanely possible and ask God to show me how to allocate my time.
There was a lot for me to learn as a self-funded esthetician and I still don’t know it all, but I have learned a thing or two along the way and I am sharing that info on the IG page and here so that you can avoid some of the mistakes I made and celebrate more wins on your esthetics career journey. Stay Tuned for More!
God Bless
Regina