Resilience and Creativity Key for Salon Owners Facing Tax Reforms
With over £6M secured in funding, Sarah Abel—aka the ‘Funding Godmother’ speaks with Ripe Hair & Beauty on tips for salons to future-proof their business.
From 6th April, employers’ National Insurance contributions (NICs) will increase from 13.8% to 15%. National Minimum Wage is also set to rise from 1st April to £12.21. As a result of the increases, Hairdressers and Salon Owners from across the country took to Westminster to protest the government’s changes to tax reforms.
Ripe Hair & Beauty, who offer specialist insurance for salons, spoke with Sarah Abel, an Entrepreneur and Strategist who runs hair and beauty academy TNB Skills Training to help provide salons with practical tips to approach the changes.
Rising Costs Vital for Survival
– Pricing must reflect rising costs as too many are still hesitant to adjust prices, but it’s vital for survival. Strengthened client relationships will go a long way when communicating price changes with clients. Communicating with transparency and honesty is crucial to help maintain your salon’s reputation. Provide advance notice and putting out consistent communications.
Diversifying Revenue Streams
– Introduce things like online and offline courses, downloadable paid guides for Clients and membership models that can help create recurring income. Independent salons can differentiate by building communities around their brand. Set yourself apart from the crowd by adding cafes, personalised services, local collaborations or a retail offering.
Familiarise Yourself with Funding Opportunities and Government Support
– From the government’s Help to Grow management scheme to local authority grants, it’s worth looking at the government website to see which programmes you may be eligible for. There are several underutilised funding streams available to salons right now. For example, the government will often fund staff to complete courses in business and marketing strategy, which can help salon owners grow sustainably.
Incorporate AI and Embrace Automation
– Salon Owners need to know their numbers inside out and take action based solutions. From analysing client data for personalised services to inventory management and levelling up your digital marketing assets, there’s a host of ways to start incorporating AI into your business.
Looking Ahead
– We will continue to see salons adapting by becoming more hybrid in their business models, blending traditional employment with rent-a-chair setups and partnerships with other sectors such as retail and hospitality.
– Training will play a massive role in the industry’s resilience. Salons that invest in upskilling their teams and teaching them how to deliver additional services or even run parts of the business (such as marketing or retail sales) will have a competitive advantage.
– Funding will also be crucial. Accessing government grants, funded training schemes, and investing in automation and AI tools will help salons stay lean, productive, and innovative.
For more hair and beauty business advice visit the Ripe Hair & Beauty blog.
