Beauty salons over £9,000 out of pocket due to coronavirus
The coronavirus pandemic will cost small businesses in the beauty industry £9,282 each on average in lost work, earnings and loan repayments, according to a survey from Simply Business.
A third of the 411 hair and beauty business owners surveyed said they are also at risk of permanently closing (33%) while two out of five owners (43%) are concerned about the future of their business.
Additionally, over a third (37%) of small businesses in the hair and beauty industry are also concerned about running out of money, with half (50%) of owners admitting they have had to borrow money from friends and family to survive. Over a quarter (26%) of those are concerned about being able to pay back this money they have borrowed.
While 72% of those surveys said that the Government grants and loans have helped ease the financial strain, many others have fallen through the gaps in financial support.
The study also revealed how hair and beauty firms feel about life after coronavirus, with three fifths (59%) worried about losing customers or their jobs from the pandemic. However, one in five (22%), said they still felt optimistic about their business’s chances after coronavirus. In fact, 6% of survey respondents said they even feel confident enough to start a new business.
“No business has been able to escape the impact of the pandemic – and that’s no different for small businesses and the self-employed,” says Alan Thomas, UK CEO at Simply Business.
“Few small businesses have been hit as hard as those in the hair and beauty industry, and it's clear that many will take time to recover,” he says. “Small business owners and the self-employed have shown how creative, determined and resilient they are throughout the pandemic, and we know they’re going to be crucial as the UK economy looks to bounce back.”
Visit our Coronavirus Support Guide for more advice on how to navigate your beauty salon, spa or self-employed business through the pandemic.