How to ensure hair businesses can survive in 2021

Published 10th Feb 2021 by kieran

As we leave behind one of the most challenging years ever faced by the hair and beauty industry, the NHBF explains how businesses can plan for the tough times ahead in 2021.

NHBF chief executive Richard Lambert says: “We fully understand the scale of the problems caused by the Coronavirus pandemic.” He adds: “Our most recent survey revealed the huge impact it has had on hair and beauty with 62% of respondents saying they were unsure if their business would survive until the end of the financial year in April. Across the hair and beauty sector as a whole, only two in five were just breaking even.”

Importance to the UK economy

The hair and beauty industry is hugely important to the UK economy, contributing over £8 billion in turnover in 2018 based on the most recent figures available (the latest NHBF industry stats can be viewed at nhbf.co.uk/stats2020). “We continue to push the UK Government for more financial support for hair and beauty businesses so we can start to look to the future with renewed hope and optimism,” points out Richard. “In the meantime, there are steps that you can take to help rebuild your business and plan for better times ahead.”

How to plan for success

1. Get your prices right – Deciding how much to charge is a crucial decision to get right. Find out more. 2. Reduce no-shows and late cancellations – These can seriously affect your cash flow and profit levels. NHBF members can download a free in-depth guide to reducing no-shows and late cancellations. 3. You can save money, gain clients and help to save the environment – Taking steps towards being a more sustainable business will not only help protect the environment, but it will also save you money and it is a great marketing tool to attract more clients who are actively looking for sustainable hair and beauty services. Find out more about sustainability from veganism to plastic-free options. 4. Negotiate with your landlord – Try to negotiate a rent-free period or rent reduction as well as switching to monthly rent payments instead of quarterly. Take advice from your solicitor or property advisor, if you have one, to make sure you get the best deal for you and your business. NHBF members can download a fact sheet on how to negotiate with a landlord.

5. Speak to your bank and accountant – Take the opportunity to discuss the best financial solutions for your business. They may have some fresh ideas and suggestions that you hadn’t previously considered. Find out about the importance of cash flow.

6 Make the most of no-cost and low-cost marketing – Effective marketing does not have to cost the earth and much of it is free or low-cost. Find out how to stand out from the crowd, encourage client loyalty and attract new clients.

7. Get access to UK Government financial help – Find out all the latest information about what you’re entitled to.