How to master your finances

Want to know how to manage your salon’s finances better? Want to feel like you’ve got a greater understanding of your figures?

Clare Cockell, chief executive of The Reef Spa in Maidstone, Kent, is a successful spa owner and knows how much of a challenge it is creating a sound financial plan.

She reveals five sure-fire tips for mastering your finances:

1. Plan thoroughly and compare figures
   “It’s learning not to just price yourself compared to the person down the road but knowing how much you need to be charging due to all your outgoings and your team – even things you might not think about, such as uniforms, which you’ll need to repeat further down the line,” says Cockell. 

2. Consider your costs
   “I think often you can get surprised at how much everything adds up, so even things like the cost of your email marketing,” explains Cockell. “You should have a small amount there in case something happens in salon and you need a bit of redecoration.” 

3. Involve your team
   “In my spa we have regular meetings, but also regular one-to-ones, and many of my team say these are invaluable to them because it gives them a kick start to focus on what they need to focus on, from their retail to rebookings,” says Cockell.

4. Keep an eye on the bookings
   “It’s surprising if you have five to 10 minute gaps here and there, how much they can add up to and how much revenue you are potentially losing with those small amounts during the day and the week,” adds Cockell.

5. Hire the right people
   “You can have a lot of CVs come in and you might see someone who is already trained in the things you do and you think ‘perfect’, they can slot into the business and I don’t have to worry about training. But, it’s actually remembering if they have the right attitude for your business,” says Cockell.
   
   “I will always hire on attitude rather than skills, as you can always train the skills, otherwise you might find further down the line it costs you money in the long run as they aren’t the right person for your business.”

Check out our videos on how to create a successful business plan and top tips for marketing your nail salon.

For more helpful advice and tips, visit Professional Beauty’s YouTube page.