How your hair salon business could benefit from a loan
Running a successful hair salon business requires a large amount of resources and cash flow right from the beginning. Opening a salon demands a lot of purchases to be made up front before doors can even open such as rent, POS systems, equipment, inventory and even staff. Maximising your time and establishing a profitable business needs focus and efficiency to grow. Your business needs strong marketing, fluid inventory management, and capacity to expand. It’s very rare to find a business that has all the resources it needs at every moment, especially knowing that oftentimes investments need to be made before successful returns can be found. For that reason, your hair salon might benefit from a loan, especially within the first few years of creating your business.
4 Reasons why your hair salon business needs capital
All the purchases needed to start and establish yourself (e.g. combs and brushes, electronic hair styling and grooming equipment, cart/trolleys, shampoo station/backwash units, décor, cash registers and EFTPOS tap machines) can be overwhelming and add up fast. It might be tempting to cut corners and buy sub-par equipment, but that will end up causing more harm than good. Bad equipment will negatively impact your customer experience and ability to provide top service. Investing in your business with a small business loan will allow you to start off with the right equipment from the get-go.
Having a strong marketing strategy will help you quickly get your name out there and bring in new customers. Developing a plan, testing it and adapting takes time and effort. Nurturing potential customers and building a strong following needs consistency as well as patience. It’s rare that companies can get by without much marketing, and even rarer to find someone who can do that without devoting any budget to advertising. Setting aside the resources necessary to figure out what platforms and channels work best for your ideal market can be the difference between a successful marketing idea and it not even getting off the ground.
Good employees are worth their weight in gold. When going through the hiring process and seeing how expected salaries increase with experience, you might not be able to afford the best people and might think the extra wages aren’t worth it. Don’t make this rookie mistake! Invest in getting the right people and let them know you value their expertise. Specialty service businesses like hair salons, spas and beauty salons are heavily reliant on the quality of service from employees to drive customer satisfaction. Offer more than the competition and do what you can to be an employer of choice. Get the right staff, and you’ll quickly wonder how you ever survived without them. Get budget staff, and you’ll be spending countless hours supervising and sorting out their mistakes.
Equipment, marketing and salaries don’t happen without a strong cash flow. Having the finance to start a company is often the first major roadblock people need to overcome, which is where a start-up business loan shines. The next roadblock after initial funding can happen if money doesn’t instantly start flooding in when doors open. Getting the extra resources needed to start your business and having the available cash flow to jump on good business opportunities are crucial to growing at the right time.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at February 2020. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.