Are You in Control of Your Salon Finances?

For many small business owners the world of finance is their weak spot and the single biggest reason why businesses fail.

 

If you own a business, developing the financial systems to record, monitor and forward plan are the keys that will underpin your success. 

 

Financial intelligence is more important than ever; as the salon owner/manager it is your responsibility to develop a financially strong and successful business.

 

Most salon owners are also hairdressers and so have made the transition from an employee working in someone else’s salon to having their own business. The skills that make you a successful hairdresser are very different to the skills needed to run a successful business and developing financial intelligence is paramount if you are to succeed.

 

The key to your success is having information systems that allow you to record, monitor and forward plan the financial affairs of the business. 

 

Regardless of the country you operate in, the size of your organisation or how much you charge for your services, there are always the same core financial elements to your business: being employee costs, stock costs, occupancy costs, business-operating costs and finally profit.

 

The single biggest overhead in hairdressing salons is employee costs and depending on a number of variables this will typically sit at around 50% of turnover. With employee costs being so high, managing the productivity of every individual in the salon is the key to having a viable business.

 

Accurate information to benchmark your business performance gives you the reassurance that you are making decisions based on facts and not instinct alone.

 

You don’t need to be an accountant but to succeed and grow as a business owner it is essential that you develop a thorough understanding of your business from a financial perspective. Fail to do that and the odds are stacked against you surviving.

 

Using the calculation tools below allows you to quickly assess the key financial information from your salon and allows you to adapt your business approach accordingly. In addition ASK Education offers specific business seminars to help maximise your salon's success.