Tabatha Coffey Shares 5 Ways To Manage Your Cash Flow and Grow Your Salon

Tabatha Coffey's Top Cash Flow and Salon Growth Tips

Cash flow is the lifeblood of every business, no matter the size, and every business will encounter cash flow problems at some point or another. As a salon owner I know first-hand, whether it’s due to unexpected expenses, slow sales, staffing or other circumstances beyond your control, you may find yourself short of capital at times when you need it most.

So, how can salon owners work around this? I’ve been so impressed with new finance solutions that give business owners access to flexible funding in as fast as a few minutes. They are empowering business owners to make important and timely decisions without letting capital be a hindrance. Open that new location; purchase that new chair; hire that receptionist; they put you in control of what you need to do!

I hear business owners say all the time, “if only I had more money, I would do this or that.” That’s why I’ve recently teamed up with online lending platform, Kabbage® , which analyzes a company’s live business data instead the traditional mound of paperwork and interviews at a bank. Online lending options give beauty-business owners the needed cash to cover cash flow challenges that happen every week like payroll, or long-term investments like marketing and remodeling. In the salon industry, let’s be honest, capital matters just as much as talent, ambition, and passion – and when you have all of these things, the sky’s the limit for your business.

These new solutions give peace-of-mind that allow you to start investing in your salon to smooth cash flow and grow your business. Here are five ways I suggest salon business owners can use extra capital to build a bigger, better and more fabulous salon.

1. Replace or purchase additional chairs, shampoo bowls, and other equipment

To grow your salon, you need to invest in the right tools—not only to do the job right, but to match your brand and environment. If your equipment is older or consistently needs repairs, it’s time for an upgrade. Do not let shoddy equipment get in the way of an excellent customer experience; You can’t do your best work when things keep breaking down. Having extra funds easily accessible can help you invest in the equipment you need to have your salon reach its highest potential.

2. Optimize your booking strategy

It’s surprising how often I hear salon owners say they don’t have a website in today’s environment. Every salon needs a website! They set yourself apart from competitors, highlight who you are as a stylist and can influence clients to book services and treatments with you over the salon down the street. Display photos of cuts, colors, manicured nails, and more to show potential clients your work. Clients should be able to book services, buy products, and make payments online—make it easy for them. Invest in the proper website platform and customer relationship management solutions to create a better user experience and increase brand loyalty.

3. Expand your services and offer more products

Another way to grow your salon is by offering additional services and products. Perhaps you’ve wanted to learn and expand your service menu and want to take more classes to learn a new technique. Or, you want to add additional services and hire a manicurist or an aesthetician but haven’t had the funds. Or you want to invest in more products that are cutting edge and offer more choice and diversity for clients. Investing in new products and services can bring positive attention to your brand, which will attract more clients and bring in more revenue for your salon.

4. Open new locations

Whether it’s opening a second salon or simply moving to a larger brick-and-mortar, a new location is an exciting yet costly step of business growth. If you’re opening a second salon, you’ll need to purchase additional equipment, hire more talent, purchase more inventory or more. If you’re expanding to a larger location, you’ll need to close your salon for a few days while you make the move. Ease the costs of expansion with flexible access to capital.

5. Hire more stylists

As you bring in more clients, you’ll need to bring on more talent – maybe it’s time for an assistant or a receptionist to keep things running smoothly. Hiring great talent is essential for your salon, but it can be challenging. In fact, recent reports show that even as the nation drives down unemployment to a record low, small businesses still struggle to find and keep employees. When looking for the right talent, you want to use the right platforms, reach out within your network, write a realistic job description, and offer potential employees a unique value. If higher payroll costs cause some concern, flexible capital can help ease the transition as revenue continues to grow.

While some cash flow problems are true surprises, business owners have the ability to implement smart strategies to manage cash flow and minimalize the costs of these surprises. With access to fast, flexible funding from Kabbage, you can implement these strategies, which in turn puts your business operations in the perfect place for immediate cash flow and long-term success.

 

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