It’s not exactly breaking news that the hairdressing industry has been impacted by the cost-of-living crisis on a large scale. According to the British Association of Beauty Therapy and Cosmetology, almost 94% of salon owners are struggling due to a considerable increase in utility rates over the past year, furthermore the NHBF has reported that 77% of hair and beauty businesses are paying more for energy than they were in 2022.
HJ spoke to Cam Jaques, financial expert at Money.co.uk who shared his insider tips on how business owners can still find ways to save money.
Collaborate with Neighbouring Businesses
If you can, look to see if you have any willing neighbouring businesses (as long as they aren’t your direct competitors) who you can share promotional costs with. For example, jointly promote your businesses on a shared advertising space, or share your marketing mailing lists.
Become Tax Savvy
All business owners should also have on their mind any crucial tax deductions they could be entitled to. Many businesses already know they can deduct a portion of their rent and utilities as a business expense, but some often miss out on many other tax-deductible expenses. Travel costs, including fuel, parking, train or bus fares, clothing expenses, like uniforms and safety equipment, staffing costs, for example, salaries or subcontractor costs, and even things you buy to sell on, like stock or raw materials, can all be claimed as allowable expenses in the UK, so make the most of it.
Outsource Any Non-Essential Tasks
There will be plenty of important things you’ll need to keep in-house, but there could also be a good deal of tasks that could be outsourced. In today’s modern, highly digital world, you could look to outsource payroll, bookkeeping, and event planning, which could all be supported through your salon software. This means you don’t have to give up your own valuable time and you can free up work capacity for your current employees.
