The cosmetic injection industry enjoyed a significant growth in 2020 and is a sector that has continued to thrive throughout the covid-19 pandemic despite many other industries struggling to make a profit.
Botox and dermal fillers are leading the way in an ever-expanding cosmetic market, that defies the weaker economic conditions. We expect that whilst there are economic challenges there will be a continued demand for cosmetic procedures. As the industry continues to flourish many more new entrants are expected to open up businesses in the next few years thus providing customers with a plethora of options.
From humble beginnings coupled with laser hair treatments, cosmetic injections are now proving to be a significantly expanding area, without the overheads of running large clinics. We have noticed a huge increase in practitioners specialising in the cosmetics field, putting years of skill and training into a rewarding career.
It is estimated that there are now over 1,000 clinics offering injectables, and another 750 to 1,000 freelance injectors that operate either as standalone businesses or through contractual arrangements. The business continues to grow but there are many barriers to entry and in cost alone it is a major investment for anyone starting out.
For cosmetic injectors that are new to the industry there are a myriad of working options available, each has its advantages and disadvantages. Understanding the limitations and benefits of each will help make your jump to working for yourself a lot easier.
When you are first starting out there can be a lot of unforeseen costs that pop up. Setting up the right structure is often one that you may not realise. We generally see that injectors are over-structured upon launching their business and often with little to no additional benefit. Depending upon where you are working and what your plans are, will determine what structure is right for you. Things such as insurance, asset protection and tax effectiveness are issues that you need to consider as you are beginning your journey.
Often at the start of your career as an injector, you have been sponsored or supported by a clinic and there is an expectation that you are required to either pay out training cost or work for the business for a specific time. There is a grey area as to whether you are an employee or an independent contractor during this time, and your obligations may differ. Schedule a meeting with us and we can discuss the implications of each and what is best for you.
When you are only working for one clinic, all the income that you earn will generally be considered as taxable in your hands. You’re responsible for paying the tax and will be responsible for handling your own GST obligations. Don’t worry we are here to help you understand your compliance obligations.
Often, once you become a contractor, you no longer receive superannuation. For cosmetic injectors who have come from nursing, this may be the first time that you are not paid superannuation by your employer.
Working for yourself can be financially rewarding, but the risks can also be significant, it is important to ensure that you are adequately protected if something goes wrong. Generally when you are an independent contractor you do not have sick or annual leave to cover you during periods of ill health.
Practitioners that are forging out on their own, at times can find it difficult to determine what is going to work for your business. Understanding the financial consequences of leases, what your risks are and how they operate is what we are here to help you with.
For most practitioners starting out, you will exceed the GST thresholds fairly quickly and will need to be completely quarterly BAS. We find that it is generally more cost effective to run this through a bookkeeping software package. This allows you to understand your business more completely and ensure that you have things under control. Making sure that you have budgeted for your quarterly tax obligations is an important part of running your own business and we will give you the adequate tools to manage your cash flow.
For cosmetic injectors that are just starting out understanding what your taxation obligation are can be challenging, especially if this is the first time that you have been self-employed. The team at Vault Accounting are here to help you. We know that your first time in business can be a challenge and understanding the elements of running a successful business needs the right advice, the right building blocks and the right team behind you.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via calendy or give us a call on 07 36086800.
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