We all want to be financially free, to do what we want, as and when we want to with our lives and our money!
The aftermath of the global pandemic and Brexit makes getting your finances in order even more critically important: the stakes could not be higher!
Our wonderful hair and personal care sector saw a fantastic economic bounce-back in the form of a ‘V’ shape when the economy re-opened at the end of lockdown.
It’s time to wisely evaluate your business finance plan and get ready for the current and traditionally best quarter of the financial year.
You will need to:
Put up your prices! With the current rate of inflation, it is absolute madness to assume that your business can continue while still charging the same amount for your services as you were last year.
We have all learnt how much our clients appreciated us and our services – more than ever before since the pandemic! Most consumers now have more disposable income to spend (due to not going out as much or on holidays) so they will be only too happy to make an appointment at your salon or barbershop and cost won’t be their priority! In fact, many clients may wonder why you haven’t put your prices up when every other high street business has. As the old saying goes: ‘If you don’t charge enough, people will think you’re not good enough!’
Examine your current business overheads, including:
Rent: Negotiate with your landlord if you are struggling to pay your rent and don’t forget that there are plenty of empty commercial premises in every town. Your landlord won’t want your business to fail and leave your current premises empty!
Stock: Ask your suppliers to extend their credit terms, preferably to 60 x days. This will also help to ease your cashflow.
Payroll: Wages are the biggest business expense. I believe you must evaluate your business payroll to make sure that it is never more than an absolute maximum of 45% of your net turnover. As a coach, I work with lots of business owners and managers, helping them to implement strategies to get the payroll percentage to the correct percentage level of net turnover.
iSalon can help you to manage your stock control, ensuring you are generating purchase orders based on sales and managing and minimising stock wastage and in turn, ensuring you are only spending on stock what you need to! The miSalon team member engagement app will also help your team to keep track of their own individual targets from anywhere and in turn, will help to keep your team motivated and dedicated at work to achieving goals and increasing profits for your business. Should you have multiple salons, ensure you take advantage of the Multiple Salons feature too, allowing you to have complete visibility on financial reporting.
Get your USPs (unique selling points) right:
Consumer behaviour has changed drastically making health & safety protocols, systems, and procedures the new gold standard for services that savvy clients will be looking for. Consumers will want to feel personally safe and sincerely cared for, valued, comforted and special. They will also want to be confident that they are dealing with an expert and the best professional their money can buy!
Make these factors your business USPs and you will be the high street business winners in the future.
David Drew is a fully Accredited Qualified Business Coach, (NCFE) who has over 49 years in hairdressing including previous management roles for world renowned hairdressing names and building from scratch his own successful hair salon brand for over 24 years. David has an enviable reputation and is currently enjoying tremendous success, passionate about coaching and helping hair-professionals to build their careers and businesses to maximise their true Profit & Success Potential.
Visit David’s website www.impactbusinessconsultant.co.uk and look at the ‘What I Offer’ page for FREE USE of an Amazing Profit Boosting Calculator that will work out for you what you need to charge your clients to Make Decent Business Profits!
Available at bit.ly/3RlECqf where the team will talk you through the software and the many beneficial features that can help to make your salon more profitable.