Preparing your business for the New Year

With 2020 fast approaching, it’s time to get some 20/20 vision for the year ahead and ensure your salon business continues to go from strength to strength. Hilary Hall of the NHBF shares her advice…

Cash flow and business plan updates

Take some time out to revisit your cash flow forecast and business plan. This will give you a solid basis for planning ahead with clear goals for you and your staff to aim for throughout the year. Even profitable salons can fail because of poor cash flow, so an up-to-date cash flow forecast is vital.

Start as you mean to go on…

After the Christmas rush, January and February can be a very quiet time of year for salons. Start planning in advance to get ahead of the game. There are a number of steps you can take to increase your takings in the quiet new year period. For example, you can try a ‘January sale’ or two-for-one offers on products, but don’t overdo this as you don’t want to undervalue your salon’s services and products.

Ideas include offering discounted January appointments for new or junior staff and giving a New Year’s discount to loyal regulars who bring a new client into the salon.

You could also treat your best clients to a special January event to showcase new products and treatments with a money-off voucher for appointments booked within two weeks.

New Year’s resolution?

If you’re looking for one good idea to keep existing clients and attract new ones in 2020, going greener could be a winner. For example, there is now a huge vegan movement in this country.

The Vegan Society says that the number of vegans quadrupled between 2014 and 2018, while launches of vegan facial skincare products almost tripled between 2013 and 2018. The most important packaging label for 57% of people is ‘not tested on animals’ and Superdrug’s own-brand vegan cosmetics saw a 750% increase in January 2019.

The new year is a great opportunity to ask your clients what their priorities are when it comes to going green and veganism. For example, you could consider making your product range vegan or organic and choose products that come in biodegradable or recyclable packaging.

Keep up with the law

Make sure you stay legal in 2020. There have been a few changes in employment law that you need to know about.

For example, there are now stricter rules for recording the number of hours your employees work – you must keep an accurate record of the hours your employees work every day, including any overtime hours.

In addition, from April 2020, you must give new employees written terms and conditions from day one of their employment. The current time limit is two months. NBF Members can use free contracts and staff handbooks which cover this new legal requirement: nhf.info/contracts.

Also, make a note that the National Minimum Wage and apprenticeship rates will be going up in April.