Being in business isn’t easy, it can be fraught with challenges. So as owners and managers it’s important to always be looking at ways to stay on top.

You need to be proactively planning to ensure your business continues to grow.

Every salon owner should always be asking themselves what they are actively doing to grow their business. The people who do that, the people who take the opportunity to constantly be improving and refining their systems and business processes will continue to go from strength to strength.

So where do you start? Here’s 7 key steps to help you stay on top.

At number 1…

Be flexible

Your business plan needs to be flexible, and be able to change with the times. You need to step back and review your business goals, your staffing numbers, your training needs and budgets. You need to focus on the opportunities and not just the problems.

At number 2, is the importance of always…

Looking for ways to improve your productivity

Look at all the ways you and your team spend their time. Finding one big way to improve productivity by 10% is difficult, but by looking at lots of small changes in many areas of your business you can often achieve significant efficiency improvements.

If you can involve your team in looking for ways to increase productivity you are more likely to get their buy in and cooperation.

Step number 3 is…

Cut the fat

It’s always prudent to keep overheads under control. So what can you do to reduce your overheads? This can apply to your people, too. It’s not always easy for small businesses to get rid of people, but in business your team need to perform.

As difficult as it can be to do, there are times that for a range of reasons you have to get rid of people to protect the business and the remaining jobs that it creates.

At number 4 it’s…

Offer more and do it better.

You are not the client, so it’s essential that you understand what your client’s real needs are and what your competitors offer? You may need to offer more than the competition to win the clients over.

That doesn’t mean charging less, it means offering more value and doing it better. I don’t just mean doing the haircut or colour better, I mean making sure the entire client experience is better from beginning to end.

Step number 5 is understanding that…

Cash is king

One of the main advantages that the salon business model has is cash flow. Meaning that the client comes in and has a cut or colour and they pay for it straight away.

Good cash flow is essential especially in tough times, so make sure you know exactly what it costs to run your business every week. Use a cashflow budget to plan ahead and identify in advance where the cashflow risks are.

For example seasonal fluctuations or staff holidays where the revenue you produce each week may be less, but your costs of running the business will in all likely-hood stay the same.

At number 6 it’s important that you…

Make everything earn its keep

How much cash is tied up in inventory? Many salons carry items that are not moving. That’s cash that you can free up for your business, so focus on being efficient with your ordering systems, you never want to run out of a product but you don’t want to have excessive amounts of stock on the shelf that aren’t moving.

And finally at number 7 it’s important that you…

Re-invest into the business

The ultimate aim is not to survive but to grow and for that to happen you need to be constantly re-investing in your training and marketing activities.

Thank you for watching…

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Have a great week! 

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