In any business, construction, finance, food, hospitality, and personal services—especially aesthetics—deposits are important. Generally, it’s to protect yourself or your business from losing a profit because of cancellations and no-shows. Still, there’s a little more to it when it comes to the aesthetics industry. For practitioners, it’s more than being paid for your time. For small businesses, it’s more than insurance.
So let’s break down why aesthetic practitioners (and business owners, especially small business owners) need to take deposits, especially during difficult times like these.
It protects your (or your business’s) finances
The short answer is that, at the end of the day, you’re here to earn a living. Therefore, deposits are your saving grace from completely losing profits for the day if you’ve got multiple no-shows. But the long answer is that when it comes to charging prospective clients, you have to think of earning a profit where you can, and giving your earnings back to your business. It’s your insurance, in a way.
Suppose you’re a practitioner who works for a larger business (or multiple), plain and simple. In that case, deposits protect you from losing a profit against no-shows. At the very least, you have to think of your travel expenses and the fee your employer(s) are taking off your gross income. You’re earning something, even if it’s a quarter of what you were supposed to make.
Suppose you’re a practitioner who owns and operates your own clinic. In that case, you have to think about rent, electricity, and internet bills—and that’s not including the money you’ve spent on your furnishings and tools. There’s a lot to pay for when you own a business, even when it’s a small business, so it’s important to bring in revenue wherever possible.
It builds structure and legitimacy in your business
Speaking of valuing your career or business as a whole, collecting deposits from multiple clients means you have a list of clients you’re expecting to cater to. That means you’re serious about providing people with the services they want and gives your clients that reassurance.
Deposits substantiate appointments! Suppose a client sends a clinic or a salon a message saying you want to book in for a treatment or service without any monetary exchange. In that case, it’s easier for them to change their mind or lose interest. Anything can happen between the day they book in and the appointment date that can make them cancel or end up being a no-show. That means you have to shirk away from any liabilities during that waiting period. Taking a deposit helps with that.
Taking deposits also means you’re involved in a legitimate business that prioritizes and respects everyone’s time and money. Again, at the end of the day, you’re here to earn a living, and from a client’s perspective, they want to get their desired results without any fuss and not feel like they’ve wasted their time and money. Deposits mark that both parties are taking this seriously, which means you’ve got a serious business!
It reinforces your value as a practitioner
You paid for and attended all these training courses, earned your certifications, and networked until you’ve built your portfolio or business. Don’t forget that! Don’t forget to take your value as a trained and skilled practitioner into account when working, no matter how small or big your business is. At the bare minimum, you should know to take deposits to take steps into building a clientele.
You should also remember that this factors into solidifying your career’s foundation, should you choose to be a practitioner as your primary source of income and livelihood. No two practitioners are the same. You have a talent, a speciality, and an eye for how to make your clients feel better about themselves. Eventually, you’ll build a loyal clientele, just like everyone else, and taking deposits helps advance your career or business further.
Keep these in mind when you’re debating whether to take deposits or not. It seems like a small, insignificant thing to think about, but these little things add up in what is a successful career in aesthetics—don’t forget that, too.