The new year is the perfect time for you and your team to reassess and refine your business strategies, cut unnecessary costs, and plan for a successful year ahead. With the ever-increasing cost of living crisis playing out across the globe, one of the most sensible resolutions for businesses, large and small, is to learn how to save money, create a realistic budget, and safeguard their financial futures.
In this blog, we’ll explain exactly how to do just that, helping you save money without compromising the quality of your salon services.
Knowing Your Numbers: Empowering Your Team with Financial Insights
Before implementing any new strategies, it’s important first to get a clear overview of your financials. Use your Phorest Salon Software reporting tools to delve deep into the financial side of your business, studying reports such as
- The Health Check Dash
- Future Appointments Report
- Sales Reports
- Finance Overview.
Phorest gives you a clear understanding of the money coming in and out of your salon on a weekly, monthly, and yearly basis. Once you’ve pulled and studied the financial reports that suit your business, make it a habit to check them regularly into the new year.
Tip: Get your Phorest reports sent straight to your email inbox by setting up customised scheduled reports!
By analysing financial reports in detail, you can identify areas where you may be overspending and become more informed to make better decisions about future cost-cutting or spending. Similarly, understanding your business’ financials can help you create a detailed budget that outlines your anticipated expenses and revenue. This proactive approach helps prevent financial surprises and will, in time, help make budgeting, spending, and saving much easier for you and your team.
Minimising Product Waste Without Compromising on Quality
Product waste can be detrimental to your profits and may hinder the quality of the services you provide! If you’re concerned that product waste is an issue in your business, why not consult with team members to ensure they adopt practices that reduce waste?
Some simple ways of ensuring your products are being used effectively and efficiently include:
- Reading instruction guidelines and using the correct amount of product during services
- Keeping up with inventory management and rotating products to reduce the risk of expiry before use
- Choosing a salon software that allows detailed note-taking, eliminating the guesswork from product usage
- Choosing a salon software like Phorest that integrates with a colour management system like Vish
Create Digital Marketing Magic with Your Software
While marketing is an undeniably important business practice that should theoretically increase your ROI, it can be expensive. It’s important to be mindful when creating and distributing marketing material, ensuring the right people see your campaigns and that all money made is accounted for.
Did you know: Phorest salons that use email & SMS marketing make, on average, an extra $24,000 per quarter?!
Use your salon software to create valuable, personalised digital marketing material, delivered directly to their phones via SMS or email. Similarly, Phorest Ads Manager allows you to create, place, and monitor social media ads across Instagram and Facebook while still ensuring you can monitor your spending closely.
On this feature, Janine from Zazou Hair Salon & Academy explains; “We have boosted various posts on Facebook and Instagram over the years and have done numerous Google Ad campaigns… However, it was always very difficult to know how effective the campaigns were… Now [using Phorest Ads], we can better determine our ROI for our online marketing campaigns. I honestly think this is such a game changer for the salon industry”
Revisiting Contracts for More Cost-Effective Service Providers
When was the last time you reviewed your contracts with your energy, insurance, product, and internet suppliers? When you’ve been in a contract with a company like this, any special offer you may have received initially as a new customer could have lapsed. Oftentimes, they will increase your fees with each year you renew without telling you.
In an effort to help salons save money, Phorest has created an industry-leading Revenue Calculator, which allows you to accurately calculate the savings you could be making by either switching to Phorest or utilising more of our features- many of which could replace providers you’re currently using! Ready to see how much you could make and save? Try it for yourself here.
Similarly, reviewing what suppliers offer cheaper bills, greener energy, easier ways of payment, or more flexible promotions could help you cut costs substantially. Why not consider the environmental cost of the products and services you regularly use and try to change to a greener option? For example:
- Making the switch to renewable energy, such as solar or wind power, can reduce your electricity and heating bills substantially
- Ordering off a company like Scrummi, who who offer biodegradable salon and spa products that cut down on cotton waste and water use
- Partnering with an organisation like Green Salon Collective, which will educate you on more eco-friendly business practices while also attracting more eco-conscious customers to your business
Navigating a More Financially Sound Future
By implementing some or all of these strategies in your salon, you’ll not only gain a more in-depth understanding of your salon’s financial standing but can also make cutting costs and increasing revenue part of your overall business strategy. Embrace the power of technology, empower your staff with training, and make sustainable choices that benefit your bottom line and the environment. Here’s to a year of financial health and fantastic growth for your salon!
Interested in delving deep into some more money-saving tips to bring you into the new year and beyond? Why not read our Strategic Growth Guidebook?