If there are two words that can send shivers down the spine of any salon owner, now more than ever, they are “cash flow”. And when there are gaps in your salon’s cash flow, it’s easy for it to snowball into bigger, hard-to-bounce-back-from problems.

With that in mind, here are our tips on how to bridge cash gaps.

Make it easier for customers to pay you
Obviously, salons shouldn’t be carrying out treatments without payment being made: “I owe you” isn’t a recognisable currency! But when people’s personal cash flow is low, there’s less chance of them booking in. So ensure you’re set up with AfterPay or Salon Pay, to make it easier for customers carry on with their treatments. You get paid the full amount by the payment outlet upfront, which means there’s no risk on your salon.

Focus on selling products or treatments that have a higher margin
“Have a good look at your books, and you’ll quickly work out which items on your salon menu have the highest profit margin,” says business expert, Doris Whitely. “Generally, these are the treatments that use the least product, the least time and yet have a higher price tag. Push those.”

Introduce staggered payment terms
Speak to your suppliers and enquire about a payment plan. This relates to everything from new equipment, to your wax supplier. “Offer a 50 per cent deposit upfront to cover stock costs, then 25 per cent at the midway point of sales, and 25 per cent at an agreed time,” says Doris. “You’ll be surprised how willing people are to help at the moment. After all, if saying no to you mans losing you as a client, that’s going to effect their business, so it’s in their best interest to come to an arrangement with you.”

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