Agreeing with @Critter excellent reply, just wanted to point out that you really have two types of income to consider (a) the service portion -- hair styling etc. and (b) retail sale ( of beauty products ). You report all this on Schedule-C. Ideally you need to take stock of your inventory on the first day of the business of the year and again on the last day of the year ----- on your daily ledger you have already entered all the incomes and all the expenses, including all the goods ( inventory ) that you bought to sell later.
These items for sale are used to compute Cost of Goods Sold (COGS) --- Total yearly expense on inventory + cost of inventory Carried forward ( from last year ) LESS cost of inventory remaining at the end of the year. Thus when you show your Gross income ( from this business ) one of the expense is the COGS. Supplies is another expense -- this is all the material that you bought to use in providing the service portion of the business like shampoo that you used for hair-styling on clients etc. etc. TurboTax will walk you through all of this.
Hope this helps
