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Secrets to starting your own successful beauty salon

Starting your own beauty salon requires more than a Pinterest board of what you wish to achieve. There is plenty of planning and preparation that goes into the business aspect of your salon before you can think about the decor and detail you want to add to give your new business the sparkle it needs.

Before you can reap the “fun” benefits of owning and running a beauty salon, you need to start your business on the right foot. Be forward-thinking and approach your new venture as a business deal. While it might be unusual in the sense that you don’t work a regular 9am to 5pm job, you certainly need to have the mindset as if it were. You need to have a structured management plan in place and lean on the correct people for help. You might “think” that you can do it alone, but you simply cannot. Maximise your budget by incorporating everything you need to run your dream business and make a living.

Here are a few tips to consider when starting your first salon business:

  • Finalise your business plan

Just because you don’t perceive your business to be a corporate or similarly structured business, you still need a business plan to execute your goals and work towards your business objectives. It’s pointless diving head-first into a business concept if you haven’t planned for it. There are plenty of factors that play a role in a business environment that you will need to consider. You will need to have a proper plan in place of where you want your business to grow to. Your business plan will need to be updated and tweaked every couple of years in order to document your growth and to see how far you’ve come.

  • Secure your finances and budget accordingly

In your business plan, you will need to draw up a costing of what it will take to start and grow your business. If you do not have access to the capital amount that you need, you will need to look at alternative financing options. From equipment to cash flow, salaries and more, you will need to have the correct finances to successfully start your own business. Take a personal loan, for example. Fill in a loan application to apply for any outstanding amount. During this process, make sure you have a clear understanding of what the terms and conditions are of your loan and how long it will take to pay back the money. You can view the amount that you might qualify for beforehand by searching for a personal loan calculator, as well as the repayment amount through a loan repayment calculator.

  • Choose the correct salon staff for your business

Anyone starting a business knows that the correct staff can make or break your name and reputation. Beauty therapists and employees need to be bubbly and engaging with your customers. Make sure that you choose staff members who will go the extra mile to create long-term relationships with your customers and keep them coming back for more. When your salon grows, you will need to hire more people, but the best advice is to start small and lower your overheads until your business really starts to take off. Once you’ve shown the public who you are and how much you pride yourself in good customer service, the easier it will be to employ more people based on your increase in profitability.

  • Invest in insurance for startups

As you know, insurance is something that cannot be compromised on. If not in your personal life, then not in your business either. Because you’re working in an industry that requires thousands of Rands worth of equipment, it’s vital to insure your equipment and assets. Not only will insurance protect your business and employees, but also your customers. Before you employ anyone, ensure you’ve done your research and consulted with a professional company which can guide you and help you with this process.

  • Think about your services, pricing and products

Your prices should be directly related to your target audience. If you are based in a middle to lower LSM area, you cannot charge luxury rates because your customers are unlikely to afford it. So, you need to be extremely careful with your products and services pricing. Salon treatment products are extremely costly, so it is advised that you stick to a small menu before branching out and offering more than you can afford to maintain. Do your research and speak to other professionals in the industry to learn more about the market. At the end of the day, you need to analyse your expenses and set your prices accordingly.

  • Don’t forget to market your business

Lastly, make absolutely sure that you can set aside a budget to pay for your marketing fees. When starting out, you need to advertise your business to the public if you want to create awareness and become known in the industry. Print is expensive and cannot always guarantee the return on investment that you had hoped for, therefore you should focus on social media. Digital is the way to go. If you create engaging content and advertisements that are shareable, you’ll be able to reach your targeted audience in no time. These platforms will help you to create and boost your brand’s awareness.

What is asset finance and how can it help your SME

The first concern of any business is balancing costs and expenses alongside retention and profit – in actual fact, mere survival. Obviously, the aim is to have more of the latter and less of the former: at the very least, you want them to even out in a way that allows you at least some profit. There are many ways to help achieve this, but one important way is to consider asset finance, due to every business needing assets in the first place to at all survive.

Asset finance

In order for you to even function, a business requires assets. Assets are usually considered to be those things like equipment, cars, etc., that allow you to do the business at all. However, when starting a business, obtaining the best assets – which allows you to do the best business – can be difficult, if not impossible. After all, you’ve put a lot of money down already into the business; now you need even more to merely make it function.

Asset finance is an umbrella term about financial solutions to obtain assets without incurring too much of a penalty, if done and chosen correctly. One financial assistance site notes:

“Many businesses don’t have enough available cash to consider an outright purchase, making asset finance a necessity. Even if you can afford it, you want to put your money to good use and investing cash in assets leaves you with less working capital to finance operations or explore new growth opportunities. The flexibility of asset finance allows you to align repayments to suit your cash flow and you may be able to claim tax deductions.”

Thus, there is a way to work on obtaining the desired assets while also keeping your costs lower.

Options

But, as we noted, asset finance is an umbrella term.

For example, you get the option of leasing the asset. This is, as the name suggests, paying to use the item. At no point, of course, do you own it. There is usually no deposit, but that depends; further you are tied to a certain amount of time, since this means the lender obtains a profit from their leasing service.

The obvious advantage is that you can acquire new items that help your services quickly. You can even sometimes have the option to own the product, if you have enough money – though that’s not the point of leasing itself.

There is also “hire purchase”, which means:

“Giving you a fixed or variable rate, with this option you generally pay the VAT and an initial deposit at the start – followed by a simple, structured repayment profile designed to facilitate cash flow.”

Thus, at the end you own the asset entirely, but manage your payment in a way that makes the least impact on your cashflow.

Impact on business

As a growing business, you need to be doing all you can to keep costs low. And asset finance, and its different options and perspectives, as well as the option to acquire said assets, makes for an important consideration. Of course, if you had the money in the first place, it would be best to purchase – but that can be an option for later, when your business has grown and the assets are in place to secure a financially viable future.