Salon Owner STRATEGIES

As the budget changes come into effect, many salon owners are rethinking their business strategies in order to stay profitable

At the time of going to press, the proposed Budget changes (which includes a rise in National Insurance Contributions and an increase in the National Living and Minimum Wage) are due to come into effect from 1 April.

► USE AI SOFTWARE

“We’re using a 12-week cashflow forecast to track expenses, helping us stay ahead and avoid overspending. Negotiating better supplier deals or finding alternative suppliers is a key focus to keep costs under control.

By leveraging AI and salon software, we’re streamlining workflows, tracking performance and reducing manual tasks. This allows us to deliver more without necessarily increasing the size of our team or wage bill. Boost income by reviewing pricing, encouraging high-value, quick-turnaround services.”

Billy Ryan, Tribe Salons, Clapham Common

► OPTIMISE EVERYONE’S TIME

“We are raising our prices by 5% but any higher and we feel it would alienate clients. Instead, look at everyone’s role within the salon - and maximise their time. We all have to pull together as a team, no one should be sitting around on their phones. From assistants to art directors, receptionists to cleaners, looks at their roles within the business. If the team is busy, Sally and I will brush the floor; the salon is a collective rather than individuals working in the same place so one of the good things to come out of this is teams working closer than ever before.”

Jamie Brooks, Brooks & Brooks London

► UNDERLINE YOUR VALUE

“We will be creating packages and services that shows customers that we are offering more value than any of our competitors. My advice? Keep focused on your goals and trust the process. My mantra for this year is: don’t think twice. Every time I have thought twice about something it’s been the wrong decision, go with your gut instinct. It’s a dangerous situation at the moment, and we have to put at least 15-25% on our top line to make it worthwhile doing business.”

Noel Halligan, NOCO Hair, Bristol

► SHOP AROUND

“When the budget was announced, the first thing we did was look at outgoings and cancel unused subscriptions. We also changed our booking system and made a huge saving. Shop around for phone, broadband, electric, gas and insurance providers. If wages are going up, then all commission targets must be adjusted. You must know what your business needs to take each hour it is open, in order to survive. Getting the average bill up by offering add-on services, as well as retail sales, makes such a difference.”

Bobby Gorden, Fella

► FOCUS ON RETAILING

“To get even more profitable, we are focusing on the products we stock and recommend. As a team, we now ensure to talk about products earlier on in consultations and show clients ways to use these products at home to get the most out of them – this has already led to an uplift in sales. I’m also ensuring that the team knows how important it is to talk about haircare at home with clients, as this is a great way of positioning products properly and making them a natural part of the client’s experience and daily routine. Also, when clients are looking to book an appointment, we offer add-on services such as colour, beard trims and eyebrow waxes to help them make the most out of each appointment. This way, we are doing the little things that enhance the client’s experience but also help to keep the business strong.”

Charles Rose, Crate Cheshire

► STAY TRUE TO YOURSELF

“For many salon owners, they will be hit with increased business rates, increased minimum wage and increased National Insurance all at the same time. Don’t just do what the salon down the road does as their costs might vary greatly from yours. Every business is unique, and any changes you make have to work for you, your team and your clients. Do your numbers with your accountant and create a proactive strategy that works for you and your business.”

Sean Hanna, Sean Hanna Business Consultancy