10 minute read
Salon business advice
Keeping your business profitable
Pet Accountant, Victoria Clark, looks at how you can keep your salon operating profitably
Once you’ve started your own business you think you’ve taken the hardest step, but the most difficult thing is to keep your business profitable.
So how do you make sure your business is making a profit and doesn’t make a loss?
Always look for ways to improve
You may think you’ve got the everyday running of your business spot on, but there’s always room for improvement. Keep an eye on improved software new to the market that may help to streamline your processes and save you vital time in your business. Nothing is ever perfect, so make sure you’re always in the know when it comes to new ways of doing things, keep an open mind. This could mean diary management software for example, make sure you do your research and compare prices every year.
Price increases
Don’t be scared to charge your worth. Prices are increasing on a daily basis at the moment, so why shouldn’t this apply to Pet Businesses? If you feel that you’re getting busier and busier, then you are in demand. Make sure your prices reflect this. If your clients value what you do, they will understand the inflation of your prices. When you first start off in business you may feel that you need to undercharge to get those first few clients on board. Once you have them and you’ve made an impact, they will understand your true worth, so don’t be afraid of scaring them away. I would recommend reviewing your prices every six months.
Review your costs
Make sure that every few months you review your costs. What subscriptions are you paying for? Do you make the most out of the subscriptions you pay for? If the answer is no then make sure you cancel any unwanted subscriptions. When your outgoings come up for renewal shop around. You may feel like you don’t have the time to research but this extra time invested into research may save you money which is valuable to your business.
If you have agreed rates with your
suppliers make sure that these are reviewed on a regular basis and that you’re getting the best deal possible to ensure you are making as much money as possible.
Review your supply chain
Being profitable is not just about price. It also has a lot to do with your customer service. If you feel you’re being let down on a regular basis by specific suppliers then find better ones! It may sound harsh but this is a reflection on your reputation and you can’t afford to keep letting customer’s down. Look for new suppliers who will get it right every time, even if it costs you a little extra. The better your service the more people will spread the word and before you know it you will have more customers.
Ask for feedback
Don’t be scared to ask your customers for feedback. Whether the feedback is good or bad you can learn from it. Knowing what the customer wants is critical to the success of your business. If a customer makes a suggestion make sure you consider what the possibilities are to your business if you make specific changes. If the feedback is good make sure you share it on your website and social media platforms.
Stand out from the crowd
When you first start off in business you will probably research the competition. This shouldn’t just be a one off occurrence. Make sure you keep ahead of the competition. Knowing what your competitors are up to will ensure that you can keep one step ahead of them. Go above and beyond, do one better. Being ahead of the times will ensure that you stand out from the crowd and that customers come to you rather than the competition.
Network
Networking is so important to your business growth. Being active in your industry so that others know who you are means that people will know where to go if they are in need of your products or services. Not only that, but if you talk to people about your business they will be sure to mention you in conversation if someone is looking for what you offer.
Keep on top of your admin
Upsell
Improve your sales skills. Selling may not be your forte but you are an expert in your field. Make sure that when talking to potential clients that they know you know what you’re talking about. Demonstrating your expertise will stand out to people. A potential client may come to you thinking they know what they want, when in actual fact you may offer a service which suits them better. Listen to their needs and make sure you can upsell your services where possible. Rather than telling them what brushes to buy on amazon, or what leads to buy on Etsy, sell them yourself at a profit.
Keep your customers in the loop
Once someone has purchased your products and services keep them in the loop with email communication. Don’t let them forget you. Keeping in regular contact with them will not only build a relationship so that they don’t forget you when they need your products and services again, but it will make them feel nurtured and then they are more likely to return for repeat business and recommend you to others. Something as simple as a monthly newsletter to your clients is a great way to achieve this.
Invoice on time every time
If you invoice your clients make sure you do this as soon as possible and on a regular consistent basis. The sooner you produce and send your invoices, the quicker you will receive the payment. If you don’t get paid on time, make sure you have a process in place in order to chase payments. Getting paid without delay ensures you keep a healthy cash flow. Try and avoid the “I’ll pay you when I get home”, either invest in a card machine or set up direct debits using software such as GoCardless.
Take advantage of payment terms
Agree payment terms with your suppliers that suit your requirements. Make sure you don’t pay them too early but you also pay them on time. This will be good for your credit rating and your cash flow will be the best it can possibly be.
Hire a bookkeeper and/or an accountant
If you are in the position to outsource your bookkeeping then you really should. A bookkeeper/accountant will help you to review your outgoings, knows what expenses you can and can’t claim for tax relief and can produce insightful reports so that you can budget and forecast for the future. It’s a small expense in the grand scheme of things!
If you need help with your bookkeeping or accounting then be sure to get in touch!
National Pet College
Dogs in the office – Is it legal to welcome pets into the workplace?
The fact that animals can improve our physical and mental wellbeing is wellreported. Stroking a pet can help to reduce the production of hormones such as oxytocin and cortisol, lowering blood pressure, and improving sleep.
It’s unsurprising then, that since the country began re-emerging from the depths of the COVID-19 pandemic, there has been a growing trend for dogs joining their owners in the office for part of the week. It’s good for the owner’s mental health, and it’s ideal for the dogs themselves, who are not used to being alone following a lengthy lockdown.
But whilst it sounds good in theory, in practice, bringing a dog into the office may be more problematic than you would perhaps envisage, especially if that office is a commercially let space.
Why are we talking about this now?
The past 18 months have seen an unprecedented boom in pet ownership in the UK, with an estimated 3.2million households welcoming new pets during lockdown.
Of course, most of these animals are simply not used to being ‘home alone’ after an extended period of home working, prompting many an employer to consider opening up their doors not just to returning staff, but their 4-legged friends too.
On the face of it, this might just be the answer to the burgeoning crisis that the pet industry now faces, following the news that The Dog’s Trust had received a 35% increase in calls relating to people wanting to give up their dogs since offices began welcoming staff back to their desks.
As with any radical change to the
working environment, allowing dogs into a commercial setting is something that should only be done once you have fully considered the impact that it might have on the business.
1. Lease clauses: Many leases prohibit having animals on the premises. If this is the case, landlords may either agree to a variation or a side letter to the current terms which can relax clauses for limited periods, subject to specific conditions being met. If they do not consent, unfortunately, animals won’t be allowed.
If a new lease is being negotiated and you intend to have animals on-site, this must be raised at the heads of terms stage. 1. Personal injury: Business owners would be deemed liable if a dog causes injury to any other person on site. Accidents can lead to lawsuits, so a business’ insurance will cover injuries caused by animals. This coverage will come at a premium, which could make the scheme cost-prohibitive. 1. Property damage: In our own homes, we know that pets can cause damage to our property. The workplace is no different but add into that mix often highly expensive IT equipment and other people’s personal belongings, and you may have a recipe for disaster. As such, pet-owning employees should sign indemnification agreements so that they take responsibility for any costs arising from damages on company property.
As a business owner, should you consider if you want to allow dogs in the office?
Employers have a responsibility to ensure the health of everyone in the workplace. If there is any evidence that a dog’s presence would be detrimental to anyone’s wellbeing, be that because they are allergic, or even fearful, then allowing dogs in the office may not be viable.
Some employers may seek to accommodate special requirements in order to progress, such as setting aside designated pet-free areas, specified lifts, or routes for movement around the office. Either way, if they do decide to introduce this practice it will require a great amount of preparation to ensure that it is safe and fair for both dogs and people alike.
A robust pet-friendly policy will need to be devised for such a programme to be successful. Policies will differ for each company, but most should include the following points:
Entertainment (provision of chews/ silent toys); Where the animals can be exercised or taken for relief, fed, or given water; Safe disposal of dog mess; How often pets will be allowed into the office; How many pets will be allowed in at any one time; Any breeds or sizes of dog not permitted; Behavioural expectations; Health and vaccination expectations; Designated pet-free areas
Karen Mason
A business’ ‘culture’ defines its reputation as an employer or partner of choice, and the decision to allow dogs into the office very much showcases how you wish your business to be perceived.
Welcoming dogs into the workplace could provide business owners with a low-cost way of making their employees happy and perhaps even more productive.
As a landlord, by becoming petfriendly, you might find that you can charge higher rents, and also that your tenants are more likely to renew their leases. No employer wants to move from a pet-friendly location to one which isn’t, as employees may feel that they are having their benefits withdrawn.
Ultimately, the decision lies with the landlord. Many don’t want the added complications of opening up their property to possible damage or liability, irrespective of what the tenant wants.
About the Author: Karen Mason, co-founder of Newmanor Law, is a highly experienced commercial property lawyer, with a knack for working out what the real commercial issues are on any transaction and an outstanding track record of looking after her clients and getting things done.
