While the cost of living crisis, inflation and interest rates may be out of your control, there are steps you can take to make life a little bit easier.
According to HOB Salons director, Clive Collins, small steps can make a big difference not just to your pocket, but to your mental health as well. “When there is a financial crisis – whether it’s a recession or a rise in the cost of living – you have no control over this. While it is worrying, you need to think about the bits that you can control, such as your business, your own lifestyle and your clients. We all need to cut back personally and in business, it’s just ensuring you cut back on all the right areas.”
Here are Clive’s tips for riding out the storm
1 Decide what you can live without. Supply chains have always been an issue and there’s chances this is going to get worse. Hold regular stock checks so you know what you have and what you regularly need – and more importantly, what you don’t really use. Look at what you can live and work without, and use that cash for something you really do need.
2 Look at everything you purchase in the salon – from the paper towels to cleaning supplies to flowers and towels. Understand what every pound is being spent on and re-evaluate whether you really need it, or whether you could be getting a better deal somewhere else. Last-minute dashes to the shop will cost you money, so stock up on the things you regularly use.
3 Be prepared to make changes. Look at your service menu, your utilities, your product house. Are they all serving you well? You need to be flexible, downsize and change things if they’re costing you too much or not making you money.
4 Increase your prices. This is something no one likes doing, but if you don’t you are losing money every time a client walks through the door. As a service industry we still have VAT and service charges to pay, and a reasonable price increase won’t be a surprise to anyone.