Having your own salon business is the best opportunity to make plenty of money. You can only earn sufficient money if you understand the basics of running any business. In a salon, most people focus on earning from hairdressing alone. Such people forget you can add other services such as a spa, nail care, and a massage centre. After earning money from these other services you offer, what do you do now with the money? Do you spend it as though you will die tomorrow or do you save it?
Part of the money will be used to pay your workers and you will be left with some. To continually save money, we need to identify how to save and where to save.
How to save your money
Try these tactics below to save money for your salon:
- You could think of running your salon for rent venture whenever you are on leave or vacation. Rather than close up your salon and not earn a cent that day, you could let people know you’re renting it out for the days you will be away. It is up to the renter to charge the rate they deem fit. You however need to thoroughly vet the people you are hiring your salon too. Some tenants may exhibit bad behaviour in the salon which will, in turn, turn away potential clients.
- Another way to save your money is by prioritizing digital marketing over traditional marketing techniques. Traditional marketing techniques such as advertising using the television or radio; is costly. Digital marketing through social media platforms is cheaper since it requires you to pay for your data services only. Use catchy captions that will see clients flock to your salon. Of importance, do not leave out your location and telephone number whenever you advertise.
- Hold fewer staff meetings as much as you can. A 5-hour meeting usually results in losses because you cannot attend to your clients during this meeting. If you need to have a meeting, consider conducting online meetings through Zoom, outside working hours.
- Understand what your customer needs so that you purchase the right products. In your salon, you may notice more clients preferring certain hair products to others. Focus on buying what customers want, because you may end up spending money on items that customers do not want or need.
- Buy your stock in bulk rather than buy one item at a time. Bulk buying tends to be cheap. In addition to saving you money, you also save time since you will not make unnecessary trips to the mall to purchase items like hair sprays or hair extensions.
- Hire the correct employees. There’s nothing as frustrating as having a worker who sleeps on the job or one who spends long hours attending to one client. Hire temporary workers to gauge their effectiveness and efficiency. Paying a nonperformer becomes a loss.
Where to save money
After correctly following these steps to save the money, you may want to keep it aside. Here are some of the places where you can save your money:
The commonplace to save your money is a bank. Different banks charge different rates when making a withdrawal. Before you join a bank, ensure such rates are affordable. You can also save your money in your bank if you already have an account.
If you are willing to take risks, then you may also consider purchasing stocks. To participate in a stock exchange, you need to be knowledgeable about companies that mostly do well economically versus others. Once your stocks have risen, you can either withdraw or wait to see whether your stocks will increase.
Lastly, you may also consider investing in government bonds. As an investor, you lend your money to the government so that they can use it to develop the country. The government then refunds your money with interest. The interest rates are higher than banks. Government bonds can be bought through the treasury.
Running your own salon business can earn you good money, if only you understand ways of saving that money. The principles of running this business also apply to other businesses.