This blog originally appeared on SolaSalonStudios.com
When the world presents us with challenges, the universe responds with opportunities to grow. When you’re a salon owner, you’re able to enjoy the benefits of being your own boss, but with that also comes a fair amount of responsibility, particularly in times of financial uncertainty.
Here, we've compiled 8 steps you can take in your finances to weather this difficult time.
Step 1: Preserve Cash
The very first step is to find ways to preserve the cash you already have, both in your business and in your personal life. From requesting lower rates on credit cards, student loans, and leases, to cutting back on everyday essentials, there are lots of actions you can take TODAY to eliminate costs and preserve cash.
Step 2: Access Cash
Depending on your financial situation, preserving the cash you do have may not be enough. You may need to find creative ways to access cash quickly, including applying for loans through your bank. There are also lots of ways to get creative with your clients – including selling gift cards, pre-purchasing a service, selling retail and more!
Step 3: Simplify
Make the word “eliminate” part of your daily vocabulary and frugality your new best friend! The practice of simplicity is powerful for your business, finances, and your sanity. There are a few ways to simplify your life, including reviewing which expenses are not necessary and selling items you can live without.
Step 4: Track Your Money
Tracking your money is absolutely critical, and budgeting is essential. Although the word budget gets a bad rap and brings up feelings of overwhelm, budgeting is really just creating a plan for your money. It allows you to get real about your finances and encourages a sense of ownership with your money.
Step 5: Level Up Your Financial Acumen
The scariest things are the ones we don’t understand. Challenge yourself to up your game when it comes to financial literacy. Many entrepreneurs tend to place a strong focus on their craft at the expense of the financial side of the business. Don’t let this be you! Remember, numbers are simply a language, and you can’t learn a new language without study and practice. Focusing on the numbers will allow you to do MORE of what you love.
Step 6: Increase Total Sales Through Growth
In a period where you’re unable to work, growing total sales might feel impossible! However, there are actions you can take today to impact this number in the future. View this time as an opportunity to be proactive. You might not yield immediate results, but when you do return to work, your clients and wallets will thank you!
Step 7: Act, Don't React
Fear and panic are two contagious emotions. Challenge yourself to take timely action, recognizing the difference between reacting out of fear versus taking empowered action! Uncertainty is scary and it can lead people to making rash decisions. Keep in mind, things will not always be this way. However, being adaptable will help you embrace a new normal once the storm passes.
Step 8: Practice Gratitude
Feelings of financial insecurity can consume our thoughts, and the mind can trick us into thinking we’re the only one with struggles. Remember, every single person has financial responsibilities of their own. They might be equally overwhelmed, or they might even be in a worse situation than you are. Use your downtime to express gratitude and appreciation for others, especially for your clients! Not only will this take the focus off yourself, but it’s a kind thing to do and we promise, your clients will never forget the personal touch and act of kindness.
For an in-depth look at finances and ways to implement the tips above, download the free guide here.