The salon industry is extremely competitive and sometimes requires a good deal of investment from owners to remain profitable. Since not every small business owner has the capital to grow their business, a business cash advance offers many benefits over a traditional bank loan and can give you the cash you need to grow quickly. Here are just a few great ways your salon can use a business cash advance.
Salons were hit particularly hard by the pandemic, and many are still trying to find ways to get previous customers back in the door and acquire new ones.
While many small business owners view marketing as a luxury, it is a necessity in order to grow and maintain your business. "The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue for marketing and advertising if you're doing less than $5 million a year in sales and your net profit margin—after all expenses—is in the 10 percent to 12 percent range." Social media and email campaigns can be relatively inexpensive ways to get your marketing started.
While it might not seem like the biggest priority for your salon, continuing your education and the education of your staff is an important facet of growing your business. Sometimes education can be costly, so using a merchant cash advance is a great way to further education.
If your business is doing well, it may be a good idea to open a second location or expand your current business. This is a significant investment, and a good deal of research should be done prior to opening a second location. Ensure there is a market in your target area and that you'll have trusted staff members who can handle the responsibility of operating your second space.
Outdated and malfunctioning equipment should be replaced as soon as possible. Making sure your equipment is updated can help you avoid costly downtime and even draw in customers looking for the latest and greatest in salon services. Offering services that other salons don't can significantly increase customer loyalty as well as revenue. When purchasing equipment, it is always a good idea to go with new versus used as you will likely have some kind of guarantee of quality.
Point Of Sale Solution
A new point of sale solution is a great investment you can make for your business. A point of sale solution can help organize your business in so many facets, but most importantly, with record keeping. Keeping sales and services tracked well will benefit you and your staff. You can know how to schedule your employees, know what inventory you need to purchase, and advertise lesser-used services.
Download our investment guide for additional ideas to help grow your business!