Being a self-employed hair stylist has it’s rewards as well as its challenges, and one of the biggest challenges you will face is managing your finances
From cutting costs on products to salon booth rental, these helpful tips will help you maximize your earnings and minimize your expenses. With a little bit of effort and planning, you can take control of your finances and secure a stable future for your business.
Here are 10 money saving tips to help you be more financially robust and protecting your business in the longer term.
1. Keep inventory low
As a hair stylist, it’s a good idea to keep your inventory low and lean, one way to do this is by only ordering what is needed for the next 3-4 weeks. Also Utilizing inventory management software can also help track usage and reorder products as required limiting the risk of running out of stock.
Try partnering with other stylists in the salon to share pool products which can also help keep inventory low. The less money you have tied up in stock the better it is for you.
2. Negotiate with suppliers
Negotiating with your suppliers for products can help you save money and get the best deal. Building a strong relationship with a supplier by consistently ordering from them and paying on time is key. Loyalty works both ways so ask for discounts and bulk deals, finally always research quality alternative products to see if they are cheaper, and be prepared to walk away if you believe you can get a better deal from other suppliers.
3. Explore Other income streams
Keep an open mind to different ways you can supplement your income, one way is to use your experience and expertise by offering classes to teach students, you can decide on a schedule to when you offer these classes meaning you can focus on your main job as a hair stylist, teaching can also be a great way for you to network with other professionals in your industry.
Another way you can supplement your income is by providing online content via popular digital platforms like YouTube, Instagram, TikTok, Pinterest and others. Providing a range of digital content that are educational and entertaining is a great way to build an audience and generate income.
4. Save on Insurance
Saving money on insurance products can be achieved by shopping around for the best rates and quality cover, price comparison sites are a great way to get the best deal. Another strategy is to buy a multi-product insurance policy which you can get a discounted rate.
Another tip is to review your coverage annually and make any necessary adjustments to ensure that you only pay for the coverage that you need. Finally also consider raising your deductible/access as it can lower your premium cost.
If possible, consider downsizing to a smaller building or suite that still meets your requirements. Look for locations in less expensive areas with lower rental rates, for example just outside a town or city center. Another idea is to try to negotiate a lower rent or improved terms on your current location.
It’s important to remember that downsizing the salon might have an impact on the customer experience, so it’s important to weigh up the pros and cons of downsizing and make a decision that’s best for you and your clients.
6. Rent a salon chair or space
If you own your own salon, salon booth rental or renting a salon chair can provide you with steady income stream without the commitment of hiring a full-time stylist. You can also rent out your space to other professions like nail technicians, makeup artists, Botox clinics and more. This also gives you the opportunity to grow your salon as a whole. If you are looking to rent a salon booth then check out our listings with booths available. www.rentachair.com
7. Use Booking Software
Using booking software for your business has many advantages. One of the main advantages is the ability for clients to easily book appointments online, reducing the need for phone calls and walk-ins. This can save you time and energy and protect you from the risk of no-shows.
Additionally, some online booking software programmes may also offer features such as automatic appointment reminders and client management tools which can help to increase customer loyalty and repeat business. In general, booking software can make running a hair salon more efficient, organized, and increase revenue.
8. Reward Loyalty
Rewarding loyalty for your clients is a great way to show appreciation for their continued support and loyalty, especially in an industry with lots of competition, but most important for you it encourages repeat business.
One way to reward loyalty is by offering a loyalty scheme where your clients can earn points or rewards for every visit, and then redeem them for discounts, services or products, another way to reward loyalty is by offering special promotions or discounts for frequent clients. For example, offering a discount for clients who book a certain number of appointments per month or giving a complimentary hair service for every five visits. Another way to reward loyalty is by offering exclusive perks such as exclusive access to new products or services, or a complimentary upgrade on a service they regularly book. These loyalty programs can also be combined with an email or SMS marketing campaign to keep clients informed and engaged. Overall, rewarding loyalty to your clients can help to improve customer retention, build customer loyalty, and increase revenue.
9. Look at tax advantages
As a self-employed hair stylist, you may be in a position to take advantage of some tax deductions and credits to reduce your tax bill. Some common deductions include the cost of supplies, salon equipment, and travel expenses related to your business. Additionally, you can deduct a portion of your home office expenses if you have a dedicated office space in your home which is used solely for your business. Contact a tax specialist to see what tax advantages are available to you.
10.Keep track of your expenses
As a self-employed hair stylist, it’s a good idea to keep an accurate record of all expenses related to their business, including salon supplies, equipment, and your marketing. This will help you to identify areas where you can cut costs and maximize your income.