Ten ways to be more prepared for whatever life throws your way and help your salon or barbershop thrive, no matter what. 

When you’re running a business, you need to expect the unexpected – whether it’s a salon opening next door, staffing issues, rising energy costs or even a global pandemic. Th e ability to tackle challenges as they arise is key for a successful business. The good news is that difficult times also off er opportunities that could be life-changing – such as changing company culture for the better or refocusing your direction. Here, four industry experts offer advice for giving your business staying power. 

1. NURTURE YOUR TEAM

If employees feel valued, they’ll want to stay – and you’ll find it easier to recruit the best talent. NHBF director of quality and standards Caroline Larissey says: ‘Staff training is a massive thing that often gets overlooked. It isn’t only about formal qualifications – they are an essential starting point, but you can also utilise the experience of more experienced staff members to teach soft skills, like how to deal with difficult clients.’ 

2. GET YOUR FINANCES IN ORDER

With the UK now expected to go into a recession that will last until the summer of 2023, it’s essential to have money in the bank. Stacey Whyte, owner of Cheveux Salon in Loanhead, near Edinburgh, says: ‘I have a reserve of at least six months and I try to continually build it up, whether for emergency use or future salon investment.’ 

3. BE FLEXIBLE

In changing times, it’s essential to adapt. ‘We noticed that, since Covid-19, clients were getting their colour done less often – so we started a new top-up service,’ says Stacey. ‘Rather than waiting 12 weeks, they can come in at week eight for a face-frame and a gloss and top-up.’ 

4. STAY VISIBLE

When you’re faced with higher rents, energy bills and product costs, it may be tempting to slash the marketing budget. This is a mistake, says Caroline Sanderson, director of award-winning brand Ego Hair Design in Inverness and founder of Salon Jedi, a training academy for salon business and mindset. ‘If you switch off marketing, you switch off visibility,’ sheexplains. ‘Just choose wisely and be smart with what you invest in.’ 

5. CHANGE YOUR MINDSET

A positive mindset can be as valuable as an excellent skillset. Caroline Sanderson says: ‘In these tough times, the real challenge is being able to stay mentally and emotionally strong. There are always winners in a downturn, so I kept focusing on that, moving forward, growing the business and upgrading my skills.’ 

6. HAVE ROBUST SALON POLICIES

No-shows and lastminute cancellations are a real headache for salons. ‘Since Covid-19, we’ve been a lot more hardline about enforcing our cancellation charge,’ says Stacey. ‘If people cancel within 24 hours, 50% is payable. It’s a business-saver.’ 

7. CHECK YOUR PRICING

Work out your pricing structure carefully, making sure you’ve taken everything into account. ‘It’s not just staff costs and product,’ says Stacey. ‘Take into account the time a service takes, development time, product cost, electricity use and the cost to have the business open during that time.’ 

8. STAY COMPETITIVE: ADD VALUE

In a cost-of-living crisis, clients appreciate value for money. ‘Even in tough times people will still have treatments, but they look for value,’ says Caroline Sanderson. ‘During the last recession, we focused on bundles and upgrades rather than cost-cutting, making sure we were still profitable.’ 

9. THINK CAREFULLY ABOUT SELF-EMPLOYED STAFF

Taking on self-employed staff may seem like a good way to save money, but you still need to check their qualifications and insurance, and any client complaints will still reflect on your business. As Caroline Larissey says: ‘Clients often assume everyone is employed by the salon.’ 

10. GROW YOUR OWN

Taking on an apprentice is a great way to ‘grow your own’ loyal workforce. Caroline Larissey says: ‘We’re always advocates of “grow your own”. It’s the best way of making sure people are working to your standards and embracing your company ethos right from the start.’ 

CASE STUDY

It’s about love – and money

Louise Howard-Long of Architect Hair in Headingley, Leeds, describes how she transformed her business:

I started the salon 14 years ago and it took some time to get the right team, but now we have a team that’s so tight. If you create your team rather than buy them in, they have a lot more loyalty and stay with you for a long time. I’ve got team members I’ve had from apprentices – one for 14 years. It’s about love – and training, and paying well. Our team work on commission – 38% or more, minus VAT.

The last thing I thought about when I started the business was money – I just wanted it to be good. But now I’m in a very different place and it is about the finances, although you’ve also got to have passion for your work. You’ve got to realise that it’s a business and there’ll be a point where you can sell it or pass it on, but it’s got to be viable. Start off knowing your break-even, your costs and what you want, and work backwards from there. Now we have money in the bank. 

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Author: NHBF | Posted 01 Feb 2023