With the upcoming budget changes set to take effect on April 1st many salon owners are rethinking their business strategies in order to stay profitable.
As economic pressures mount and operational costs continue to rise, many in the hair industry are finding creative ways to generate additional revenue streams. From utilising AI and technology to upskilling staff, these salon owners are proving that adaptability is key to withstanding economic changes. We spoke to these business owners to find out what how they are not only maintaining but growing their businesses in 2025.
Jamie Brooks, Brooks & Brooks London
"The changes coming in April are a tax on employed businesses, and employment. It’s salon owners who will be hit rather than employed hairdressers, so every business owner is going to be hit.
We have been analysing our cost base to see where we can save money, but like many other businesses, we have shaved savings over the past year, so we don’t have a lot to play with. These tax raises make taking on young trainees unsustainable, why would they do that? Employees won’t be primarily affected by the tax rises in their pay packet, but a potential pay rise will be eaten up by the extra costs so they will ultimately be hit. We are raising our prices about 5% but any higher and it could alienate clients, as everyone is cutting back, not just business owners.
My advice for all salon owners would be to plan ahead as much as you can, have a strong contingency and look at trying to run your business on a tighter margin. Look at your support team and everyone’s role within the salon and utilise their time. No one should be sitting around on their phones and not doing something. From assistants to art directors, receptionists to cleaners, look at their roles within the business. If the team is busy me and Sally will brush the floor, we all have to pull together as a team; the salon is a collective rather than individuals working in the same place so one of the good things to come out of this is teams work closer."
Sean Hanna, Sean Hanna Business Consultancy
“For many salon owners they will be hit with increased business rates, increased minimum wage and increased National Insurance all at the same time. We know these changes are coming, so don’t let it be a surprise. There are a few months to plan and get ready as much as possible so make some time to get ready.
My tips to get ready for April changes are:
- Work out the implication of the upcoming changes – have a meeting with your accountant and work out the numbers. Many salon owners will have to find a balance between increasing prices and cutting costs, so look where the increases will be, and what costs can be cut without affecting the service you offer.
- Don’t just wait to see what happens – preparation and planning is everything in business, especially when you know something is on the horizon.
- Don’t just do what the salon down the road does as their costs might vary greatly from yours. Every business is unique, and any changes you make have to work for you, your team and your clients.
- Do your numbers and create a proactive strategy that works for you and your business."
Noel Halligan, NOCO Hair, Bristol
"The government is tightening up on salon’s budgets which are already really tight and not helping employers of the world. They are following through on their promise that they won’t tax the working class people, but they are taxing businesses. A millionaire is leaving the country every 45 minutes, 10,800 left last year. To become a millionaire you have to do something that serves a lot of people - either make something that people want to buy or create a service to your community. Millionaires are employers and if they are leaving what is happening to the employees? It’s a dangerous situation at the moment and we will have to put at least 15-25% on our top line to make it worth while doing business.
To get ready for the changes coming in, we are looking at our pricing structure, marginal gains, internal promotions and cutting costs where we can, but we also have big goals so we need to focus on those as well. We know we can have a maximum of 12 people within the team, so it’s making sure we have the right 12 people who can help us achieve our goals. Then we will be creating packages and unpacking our service in a way that shows customers that we are offering more value than any of our competitors. My advice? Keep focused on your goals and trust the process. Trusting the process is scary, it’s unknown, you don’t understand yourself sometimes but know that good is going to come out the other side of it. My mantra for this year is don’t think twice. Every time I have thought twice about something it’s been the wrong decision, so go with your gut instinct. Be brave, keep your values of love and connection and build a community, but remember it is a business and it’s not all love and cuddles. Sometimes we have to follow the maths so dig deep and show clients the value you possess."
Billy Ryan, Tribe Salons, Clapham Common
"At Tribe Salons, we’re focusing on smart financial planning, technology, and team efficiency to ensure long-term growth without compromising the client experience. We’re using a 12-week cashflow forecast to track expenses, helping us stay ahead and avoid overspending. Negotiating better supplier deals or finding alternative suppliers is a key focus to keep costs under control. By leveraging AI and salon software, we’re streamlining workflows, tracking performance, and reducing manual tasks. This allows us to deliver more without unnecessarily increasing the size of our team or wage bill. Cost increases should be reflected in pricing where demand allows, but rather than a drastic price increase, we’re focused on boosting client spend through upselling, add-ons and retail sales. Minimising waste with systems like Vish, adopting energy-saving practices, and managing stock better are key steps we’re taking to cut costs while maintaining efficiency and sustainability. With our team, we’re upskilling team members to expand services to ensure we maximise the potential of our existing team without unnecessary hires, allowing us to increase revenue while maintaining a balanced workload. My advice would be to plan ahead by using a cashflow forecast and monitoring spending closely. Optimise resources by negotiating supplier deals, embracing technology, and upskilling your team. Protect the client experience - cost-saving measures should not come at the expense of service quality. Boost income by reviewing pricing, encourage high-value, quick-turnaround services, build partnerships with local businesses and seek support from mentors or peers. Most importantly, stay positive. These changes present an opportunity to refine operations, improve efficiency, and strengthen your business for long-term success."
Joe Emir, Inanch London
"I was very disappointed to see that the new Government are not helping small businesses by incurring these changes that are ultimately going to increase our employer tax liabilities. We will no longer be hiring ‘employed’ stylists/colourists - future senior technical positions will all be on a self-employed basis only. We didn’t have plans to increase our prices this year but unfortunately due to rising cost of goods and now rising taxes, we have no choice but to increase our prices. Every salon should review their current prices and see if there is scope to increase their prices from March/April giving a full explanation to clientele as to why prices are increasing. Try to hire future senior staff members (technical staff) on a self-employed basis if this is appropriate for your business model."
Support Our Salons
Hairdressers Journal International has seen just how dramatically the Autumn 2024 Budget has affected hairdressers and the personal services sector. From the increase in National Insurance Contributions, to the impact the Budget will have on apprenticeships, the changes will be felt deeply. In light of this we have launched the #SupportOurSalons campaign, dedicated to sharing your stories, as well as reporting on the changes. Join our campaign to get your voice heard. HJ believes that the rise in National Insurance (and scaling back the allowance to £5k) is disproportionately hurting the salon sector. Surveys suggest that some salons will be forced to close, while others will cut back staff and apprenticeships – which will have a long-term effect on our industry. The measure will drive business underground, with people potentially using self-employment contracts which will have a negative effect on HMRC’s revenue. We want the government to mitigate this rise and help the salon sector. Click here to find out more and join our campaign.
