Running your own business within the beauty industry is anything but a breeze. It’s a competitive world, where business owners are striving to be the best in the business, and always looking for new ways to save a few dollars and turn a profit.
There are so many different aspects of your business that you need to consider, and your finances are one of the most crucial areas that need to be managed. There will always be a bill that needs addressing, taxes that need to be done, wages to be paid and many more expenses that just keep coming in.
While you may be an expert with a curling wand or make up brush, managing the books isn’t something that always comes easily as a skill. It’s a whole new ball game, and at times can feel overwhelming to come to grips with, but fear not you’re not alone.
We’ve done some searching and have come up with some top tips to help your salon business save some hard-earned dollars along the way. These tips are uncomplicated and there to help your salon business stay around for the long run.
1. Budget, budget, budget
If you haven’t already got a budget in place or maybe you find your current system isn’t working, now is the time to review it and get into shape. A budget is there to help you stay on track and reach your businesses financial goals.
No matter what stage you may be at in your salon business journey, if you don’t understand your business’ financial position, your incomings and outgoings, then a lot of unwanted financial challenges can crop their ugly head, sending your business into chaos.
Your budget is your financial blueprint for your business and can help guide the financial decisions you make about your business. These are some of the things you can think about when trying to save a few dollars with a budget.
- Reassess your pricing- contact your suppliers and check that you are receiving the best deal for your stock. You might be able to negotiate a better deal
- Get a better deal on your rent- part of budgeting involves looking at ways to cut costs and save. If you are renting your business premises have a chat to your landlord to ensure you are on the best rental agreement/ price.
- Buy in bulk- buying certain stock and items in bulk can sometimes save you a pretty penny, and can eliminate multiple delivery/shipping costs that you may have had to pay
It’s also a wise idea to revisit your budget, bills, etc on a regular basis. Set a reminder on your phone and get into the habit of looking at ways you could be constantly saving money for your salon business.
2. Make your financial dreams real
It’s nice to have financial ideas and goals of the direction you would like to take your salon business, but half of the effort comes from actually putting pen to paper. Make yourself accountable and start to plan and craft a strategy as to how you’re going to take your business to the next level.
Some of the things you might be looking at saving for to help grow your business may include:
- Hiring more staff
- Taking a new course to expand on your beauty skill set
- Purchasing new equipment
- Expanding your business’ premises
It may be worth contacting the expertise of financial professionals like an accountant, financial planner or career coach to help you map out your plan to reach your financial goals. With a bit of motivation and discipline you can start to see some exciting things happen as your salon business starts to grow!
3. Understand your tax and super obligations
Tax and super can sometimes get a bit tricky, so it’s important that you have a solid understanding of the basics when it comes to running the financial side of your salon business.
Being realistic about the amount of tax and super that you will need to pay on a regular basis is one of the first things you can start with. If you’re unsure of the amounts and what is going to be the best system, it pays to have a chat with your accountant or tax agent.
Once you have a plan in place you can rest easy knowing that you tax and super are under control and there’s no room for some ugly surprises to crop up at tax time, a headache no business owner wants to face.
4. Have a safety net
Having some savings set aside for those rainy days, can help you ride out those financial ups and downs that naturally come with running a business.
Including some form of savings into your budget will help give you peace of mind to know that there is some backup there for when you may need it most. It’s a good idea to keep this as a separate account from your everyday account too.
5. Bonus-Snappy saving tips
Here are a few more basic money saving tips that you can try out with your salon business:
- Set up an appointment booking reminder system to help reduce the amount of ‘no shows. This can help to save on missed opportunities and to help better manage your clients
- Manage your inventory by ensuring you’re on top of things like how much stock you buy, the expiry dates of products etc. if you sell products in your salon check on which ones are selling well and which ones aren’t. This once again all comes back to having a budget in place and sticking to it.
- Save money on marketing by creating a referral program. Word of mouth is such a powerful tool when it comes to the beauty industry. Rewarding and encouraging your client’s when they refer others to your business is a great way to expand your customer database without having to spend a mint.
Protect your salon with business insurance
While having a budget in place and understanding the financial position of your business are all positive steps to helping your salon business save money, business insurance is another thing you should have on your radar.
At BizCover we offer a range of different types of business insurances to help protect your salon business, so in the event of a claim you’re not left high and dry. The last thing you want is to see you hard-earned business come crashing down because of one unexpected claim.
From Public Liability insurance to protecting your salon business assets with Contents and Building insurance, we’ve got your salon business covered. We know time is precious, so let us do the shopping around for you, providing multiple quotes from some of Australia’s leading insurers in minutes.
Get a quote today and experience business insurance without the dramas at BizCover today.
