Salon Management Services to Hair salons, Beauty salons and Spas
Salon Management Services to Hair salons, Beauty salons and Spas

How to get your salon through the Pandemic - Hairdressers Journal Dec 2020

Covid-19 has sent the world into panic, we are in uncharted territory. All industries have been affected but to different degrees, some positively but most negatively including the salon industry. However, there are steps you can take to minimise the impact and try to survive it.


Profit, what Profit!

There is little point having a business if it doesn’t make a profit. Profit is the reward for having your own business, giving you the lifestyle that you want and putting up with all the stress. However, you sometimes have to accept that you won’t make a profit every year and this is certainly one of those years! So, accept it and work on how the numbers will work going forward, as that’s what will give you your future profit which you will be able to offset against this year’s losses.


Reforecast your numbers for the next phase

Having said that, there is no point carrying on with the business if it will never make a profit so it’s really key to reforecast your figures to check that things add up in the medium term, otherwise you will just be getting yourself into debt.


Negotiate with your landlord

The Government Code Of Practice for Commercial Landlords sets out how landlords should be trying to help businesses during the pandemic, so use this as a basis to negotiate things like rent free periods, reduced rent or to agree on a new lease on more favourable terms. With many shops starting to become empty, landlords will be increasingly keen to try and keep a viable tenant, albeit at a lower rent. So have a good look at your lease and see what powers you might have.


Cut out any non-essential costs

This means you need to be brutal when it comes to cost savings. Anything that isn’t absolutely essential for the running of the business needs to be cut. Only you can decide what you think is essential and this will be unique to every business. If it can’t be cut out, then can it be cut back?


Right size the team

Part of cutting back unfortunately involves considering which team members are delivering real value and which ones don’t make you any money. You cannot afford to have any slack in the system at the moment, so you will probably need to let some team members go and get the ones that are left more productive.


Ensure you have used all the government support

There are many different types of government support available which is changing all the time, so make sure you keep abreast of the changes and take advantage of any new support offered. You may have resisted taking a Bounce Back or CBILs loan so far, but depending on your forecasts, it might be the right thing to get you through the next difficult phase.


Review and manage your client conversations

Strategies brought in to manage the lockdown and the “post lockdown rush” now need to be adjusted to match the next phase. Many salons switched off their promotions and some automated email and texts that remind clients to book in on their cycle, these now need to be brought back, but perhaps adjusted to a new normal. Similarly, look at what messages your team are delivering to clients to see they match. Ask the team if their conversations are creating opportunities or reinforcing doom and gloom?


Design new ways to suit changing habits

It’s hard to see the future at the moment but people are willing to support those who try. Salon Owners who can offer a vision to suit their clients and their teams will be the ones who survive.


Contact me if you need help on 07702 208 311


Ryan Fox 

07702 208 311


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