Becoming a salon owner - 11 rules to follow

If you're thinking about becoming a salon owner, our Build a Business expert Antony Whitaker offers these 11 commandments. Ignore them at your peril!  1. Manage your cash flow It’s essential to understand the cycles that occur in your business and know how to differentiate profit from cash flow. 2. Don’t do it alone Get help from professionals for accounting, business and legal matters. 3. Don’t go into business without money Many businesses are under-capitalized. Make sure you have the funds to cover all reasonable contingencies. 4. Always have a business plan Spending the time developing a business plan isn’t just essential for the bank, it will give you enormous clarity and focus on where you are heading. Review it every year. 5. Always have a marketing plan Be proactive in planning keeping at least six months ahead with a range of activities and promotions for your business. 6. Choose professional business partners Choosing friends and family to do your accounts etc usually ends in tears. They won’t treat you like a client and you won’t treat them like a professional. You might save money in the short term but it’s usually a mistake. 7. Beware of over confidence Your business is constantly in a state of change. Be confident but plan for possible worst case scenarios. 8. Keep good records Not just for the tax man, but so you can monitor and manage your performance. What you can measure, you can manage. 9. Work more ‘on’ rather than ‘in’ the business Ensure that you manage the business well before spending time behind the chair looking after clients. 10. Stay healthy You are your business’ best asset. 11. Don’t ignore the other commandments   For more informative and inspirational business news and features subscribe to HJ