As a salon owner heading into 2023, you may be keen to reassess your business strategies for the new year. Salons earn an average profit margin of 8.2%, which is above the general business average of 7.7%. When looking at your finances, a minimum of 10% profit should be your aim so if you are looking at ways to improve the profitability of your salon, these are a few key areas that you may consider.
Make Use Of Space
Making use of space is a great way to increase profitability. You may look to set up a small shop in your salon, perhaps behind the reception area for maximum visibility, where clients can buy add-ons or extras before or after their treatment. This can give them a better, longer-lasting result such as hair toners to keep brassiness at bay or cuticle oil to keep their nails in good shape.
Installing sunbeds is also a great way to profit from any unused space, particularly stand-up beds which require less square footage. As nobody tans just once, this will open up a new client base for your salon and you can also sell add-ons such as tan accelerators which will give your clients an enhanced result.
Make Your Salon More Energy Efficient
When considering the current energy costs, making your salon more energy efficient is a great way to save money on your bills. There are many ways that you may wish to do this from replacing all lightbulbs with energy-efficient versions such as LEDs or CFLs as well as better insulating your salon.
Insulation is particularly important during the winter months when cold salons can be highly uncomfortable for staff and clients which may lead to you turning up the thermostat or buying portable heaters. Instead, you should look to draught-proof your salon, sealing up any gaps which could let warm air escape and cold air enter. Doing this will ensure that you can keep your energy bills as low as possible, helping you to save money.
Reduce Overheads
Ensuring that you are not wasting money is a surefire way to increase profit. One key consideration here is ensuring that you don’t over-order stock which can disrupt cash flow. You should make your spending as efficient as possible by doing regular stock checks and only ordering what you need.
Combating over-staffing can also help to reduce your overhead. You should look to limit the number of salon employees to what is needed – you can then do seasonal hires during busy periods or look to permanently increase your staff as the company grows.
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