Money worries unfortunately mean that many hair salon and barber business owners cannot be free.
We all want to be financially free, to do what we want, as and when we want to with our lives and our money!
Control your financial destiny 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 the lockdown last summer. It’s time to wisely evaluate your business finance plan and get ready for re-opening after this current lockdown.
You will need to: Put up your prices! It is absolute madness to assume that your business can re-open while still charging the same amount for your services as you were before lockdown.
During the last lockdown, we all learnt how much our clients appreciated us and our services – more than ever before! Most consumers now have more disposable income to spend (due to not going out as much or on holidays during the pandemic) 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 eviction for non-payment of rent on commercial premises is banned across the UK until 31 March 2021.
Stock: Ask your suppliers to extend their credit terms, preferably to 60 days from re-opening. This will also help to ease your cash flow.
Payroll: The furlough scheme is currently a life saver for all businesses as wages are the biggest business expense. But even with the vaccine being rolled out, I believe the coronavirus will be a major issue for a long time and some restrictions will continue in the hair and beauty industry. 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 business owners and managers to get the payroll percentage to 38% of net turnover.
Get your USPs (unique selling points) right:
Consumer behaviour has changed drastically making health and safety protocols, systems and procedures the new gold standard for services that savvy clients will be looking for. They 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 USPs and you will be the high street business winners in the future.
Visit my 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 profits!