In this article for Salon Gold, our Founder and Director, Jonathan Cooper gives his guidance on how UK salon owners can protect their business and company with expert advice, proactive planning, and tailored financial support.
If you missed the original article, catch up below.
Salons are the ‘forgotten industry’ in the UK. They’re continuing to be faced with financial challenges from all angles, without being offered the help they need.
The economic turbulence and cost-of-living crisis have meant consumers have been watching their pennies much closer, as well as having less confidence in spending. Many have cut back on ‘luxury’ items, which has negatively impacted the footfall and financial health of SMEs in the hair and beauty industry, as a result.
Entrepreneurs need support that doesn’t create a sticking-plaster solution but rather addresses the root cause. This is where independent advice can be a real lifeline – empowering salon owners to feel more in control and less overwhelmed by their testing financial circumstances.
As a salon owner, your business is your craft – it’s what you’ve trained in, what you’re passionate about and what you’re an expert in. It’s why your clients return and why you set up your business in the first place.
Your company, on the other hand, is the legal entity that ‘houses’ your business.
As simple as this may sound, this is an important distinction not all business owners realise.
With rising energy costs, elevated business rates, repaying Bounce Back Loans, Covid aftermath, and changing consumer behaviours, salons have, undoubtedly, been under strain in recent years.
All these factors have put pressure on cashflow, and many salons have debts, as a result.
What’s important to realise though is that it’s not the business that’s ‘in trouble.’ Unless you’ve lost clients or the industry has drastically changed, the business has or will recover.
Instead, it’s the company that’s ‘in trouble,’ as that bears the responsibility of managing the debts that have been accrued.
For salon owners across the country, they’ve set up their business out of a love of what they do. There’s no manual or how-to guide on how to run the company though – you learn how to solve problems on the job.
And given the fact that in the UK, you can legally set up a company, register for VAT and start trading at 18 years old, without good advice or tailored guidance, you’re effectively being set up to fail.
As an entrepreneur in this field, you bring creativity and passion for your profession. It’s not, and shouldn’t be, down to you to understand the complexities of funding options or business structure. This is for your accountant to own.
So, when you’re running a business with heavy costs and tight profit margins, surrounding yourself with the right people to advise you is crucial. They will be in your corner to protect you.
And this is the best investment you could ever make to future-proof your company.
They will get to know your business – forecasting cashflow issues and advising on all the available funding or tax options – to help prevent any pressurised financial situations.
The right support network won’t patronise, it will educate and advise, so you can run your company with foresight and with confidence.
More than ever, we’re going through uncertain times. So, by strengthening your team with the right advisors, this will enable you, as a salon director, to be in a stronger, more robust position.
Being proactive, not reactive, has never been more important, and it’s never too late to start exploring your options.
If you’re a salon owner who would like free, impartial advice on your business and its finances, Jonathan has produced lots of videos which can be viewed on The Director’s Helpline’s LinkedIn page, here.