You have to be sure you’re covering your costs and making a profit. A key ingredient in getting your prices right while at the same time keeping a strict eye on your outgoings and reducing spending where you can.
They are increasing retail sales. Hairdressing sector includes a range of hair-related services, such as hair cutting, colouring and styling, as well as facial hair grooming. As of May 2017, 54,400 people were employed as Hairdressers in Australia, with that number expected to grow to 58,200 by May 2022. Ensure your salon and barbershop employees know how important retail sales are to the bottom line.
Even if you have a franchise like Tony & Guy, Frank Provest, Elle Bache, LaserClinic Australia etc we can help 1300, 760 930.
Getting your prices right and boosting retail sales will increase your profits. But to make your profit margins even higher, you can take steps to reduce your costs.
You must pay your employees the appropriate National Minimum Wage or apprenticeship rate.
Keeping clients and attracting more via word-of-mouth recommendation will help to ensure a healthy profit margin in your salon or barbershop.
2019 Australian Hairdressers Report found that:
These figures show just how important and valuable customer loyalty is. Losing even a single customer can be very costly financially. There are several steps you can take to increase customer loyalty, from special events and loyalty cards to make your clients feel valued with personalised consultations and welcome packs for new clients.
There are seven fundamental ways you can make your salon business grow:
The above may sound visible to you. And it is. But it’s the “if” and “how” you execute against this that makes all the difference. And it’s on this that I’ll spend the most time with you today.
To grow your salon business, you need to strike the right balance of planning and executing. You need to find the time to take a step back. See the bigger picture. Align the direction. And then run against it.
Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.
Beauty salons, hair salons, and barbershops contribute $7.5 billion to the economy annually.
With over 42,000 of these businesses in Australia. 93% of all hairdressing, barbering and beauty enterprises are microbusinesses, employing fewer than ten people per company.
Hairdressing, barbering and beauty salons are in the top 10 most popular independent startups. There are an estimated 500,000 freelance professionals across Australia, and whether you work in a barbershop, salon or are freelance – 2020 promises excellent potential for the industry.
This page provides guide information and data on the Hairdressing and Beauty sector, which is one component of the Personal Service industry. In 2017, around 54.4 thousand people were employed as hairdressers across Australia.
This number was forecasted to jump to 58.2 thousand by 2022, indicating continued growth in this segment of the country’s services sector.
Many Australians, rely on this sector for employment; the services sector is responsible for the most significant contribution to the gross domestic product of the country.
The Hairdressing sector includes a range of hair-related services, such as hair cutting, colouring and styling, as well as facial hair grooming.
According to the Bureau of Statistics as of May 2017, 54,400 people were employed as Hairdressers in Australia, with that number expected to grow to 58,200 by May 2022.
A barber is a person whose occupation is mainly to cut, dress, groom, style and shaves men’s.
In Australia, the official term for a barber is a hairdresser
Loans For Hair, Nail & Beauty Salons
Unfortunately, it can be difficult for businesses in the hair and beauty industry to acquire funding from traditional financial institutions like banks. Banks tend to impose stringent criteria and requirements for the application – this is mainly due to the small and seasonal nature of most hair and beauty businesses, which positions them as ‘high risk’ in comparison to other industries.
Capify was born out of the desire to offer small businesses an alternative and accessible lending option. Proudly we were the first to do so in Australia.
With 10+ years of local experience providing small business loans working capital globally, Capify is Australia’s most experienced alternative lender to small business.
Hair, Nail & Beauty industry and offer funding options to beauty salons, hairdressers, barbershops and nail salons – to name a few! Our exciting alternative financing products make it easy for business owners to obtain the funding needed to continue to succeed.
Whether you need to cover new equipment, employ more staff or are looking to finance renovations, we can help.
Capify has assisted beauty salon owners like you in overcoming painful cash flow periods, moving into new premises, upgrading equipment and covering emergency costs.
Despite difficult economic times, the industry is responding to challenges with creativity.
Many independent barbershops, hairdressers and beauty salons are diversifying their treatment offerings, investing in better equipment and tapping into new markets.
As a small business owner, you have a lot on your plate, including your tax and super responsibilities. It can be challenging to get everything right, and sometimes mistakes happen.
Capify staff will ensure our team have a comprehensive knowledge of the Australian SME market and can truly understand your business needs, aspirations and need for finance. Our small business lending consultants will guide you through the entire small business loan process from initial quotation to funding.
A Merchant Cash Advance (MCA) is a way for your business to access cash and pay it back over time using a percentage of future sales from your machine settlement.
For businesses that accept credit card / EFTPOS payments at the counter or on the move.
No matter what the brand machine or terminal you have, repayments are a small percentage of each day’s EFTPOS settlement. Merchant Cash Advance (MCA) could be an essential aspect of ensuring you manage the cash flow of your business effectively.
Businesses which use ANY brand or type of EFTPOS /Credit Card transaction terminal or machine, such as Tyro, Verifone, Commonwealth Bank, NAB, St George, ANZ, Westpac, Suncorp, etc. The device or terminal can be at the fixed on the counter or a movable terminal.
Capify will advance terminal owners anywhere from $5,000 to $300,000 and apply the additional fees.
The hair and beauty industry is said to be recession-proof: people always have money to spend on their looks. Whether you’re looking to start your hairdressers or beauty salon, buy an existing business or upgrade your salon, you’ll probably need some finance.
Cash keeps your beauty business moving. If you have a cash-flow shortage or require assistance for a cash-flow gap, we’re here to help, including using funds to launch new marketing activities. To attract new customers and retain existing customers to your hair salon, using a mix of new digital and physical marketing activities.
Benefits of a hair salon business unsecured loan:
Renovating or expanding your hairdressing or beauty salon
Keen to increase the size and capacity of your salon business? Looking to open at a 2nd or 3rd location? A small hairdresser or beauty loan can help you achieve this goal, including in assisting with a new salon fit-out.
Upgrade to new Equipment
Perhaps it’s time for a fresh fit-out or IPL machine for the salon? Do you need to increase productivity? Apply for a hairdresser loan to give your salon a boost in productivity for your staff and clients.
Adding more staff to the salon
Busy time coming up? Need more qualified staff? Get a hairdresser loan to help pay wages and increase your customer service and sales.
This guide will break down your loan options and show you how to compare business loans.
26 September 2019
Thinking of buying assets for your hair salon, barber, beauty salon business?
Buying equipment for a business can be expensive, so every business owner must know when and where they can write off their company purchases against tax. The ATO provides information for the industry
Using the instant asset 30k write-off, you can claim a deduction for each asset that cost less than the threshold that applied when the asset was first used or installed ready for use. Different thresholds apply, so make sure you check which one applies to your asset:
$30,000 from 7.30pm AEDT on 2 April 2019
$25,000 from 29 January 2019 until before 7.30pm AEDT on 2 April 2019
$20,000 before 29 January 2019.
On your tax return, claim your instant asset write-off deduction under ‘Small business entity simplified depreciation’.
The usual rules for claiming deductions still apply. You can only claim the business portion of the expense, and make sure you have records to prove it.
You can deduct them over time using the small business pool.
From 2 April 2019, businesses with a turnover from $10 million to less than $50 million can also use the instant asset write-off.
Remember, registered tax agents can help you with your tax.
Are you having trouble paying? Even if you can’t pay right now, talk to us so we can help.
We may be able to offer you a payment plan tailored to your needs by taking into consideration your circumstances, and your lodgment and payment history.
We also have several tools and services available to support addressing your bill while it is still manageable.
Businesses in this industry cut, colour, perm, straighten and style hair. They may also provide essential beauty and manicure services and sell salon products.
These benchmarks do not apply to barbers or beauty services.
These benchmarks use information reported on tax returns and activity statements for the 2016–17 financial year and are updated each year. This is the most current data.
The benchmarks show ranges of business income to business expenses that you can use to compare your performance against similar businesses in your industry.
Key benchmark range
Cost of sales to turnover is the essential benchmark range for this industry – it is likely to be the most accurate when predicting business turnover. If you don’t report the cost of sales, or only communicate a small amount, use total expenses to turnover as your essential benchmark range instead.
Generally, you should fall within the essential benchmark range for your particular annual turnover.
Falling outside the vital benchmarks for your industry may indicate your business has room for improvement.
It may also be worthwhile checking you reported all income and accounted for any trading stock you may have used for private purposes, as these can affect your results. Individual businesses can use amounts we accept as estimates, check if they are available for you.
Colouring hair can take anywhere from 20 minutes to over 2 hours, depending on the results wanted, existing colour and health of the hair.
A foil is a separated section of hair with lightener applied, which is folded in foil to process. Foils can be highlights or lowlights to add depth.
Many hair salons will offer hair extensions as a service, including blending them in with your natural hair.
Hair toner changes the tonality of the hair and used on any hair colour. It’s mostly associated with blonde hair to remove brassiness.
Lightened hair cannot be removed. However, you can tone bleached hair or colour it for a different look. The other option is to grow it out.
Colour correction can be a long, but well worth it, ordeal. The process will depend on what colour and product are in your hair and the desired result.
A keratin smoothing treatment seals hair cuticles with a protein coating, which eliminates frizz, leaving the hair smooth and shiny.
Balayage hair is a colouring technique, typically blending darker roots into lighter ends. The Ombre look is one of the biggest trends of 2019.
Short hair does require more frequent trimming, but medium-to-long hair can be cut every 6 to 12 weeks, depending on its health.
Washing your hair less frequently, visiting your hairdresser for a trim every eight weeks and avoiding heat tools can all help hair grow faster.
Capify provides fast business loans in Sydney and is one of Australia’s leading finance firms that obtain the purpose of providing funds and assistance to any business who require it.
They offer two types of loans or credit products including; Merchant Cash Advance and Capify small business loan.
Capify is different from competitors with their ideal NSW business loans, and their ability to see potential success in businesses without being bias as much as possible on previous credit ratings.
Capify is an alternative to the big bank and does not offer a line of credit or interest rates. Instead, they work at a fixed price. Loan terms range from 3 months to 12 months, and their loan amounts range from $5,000-$300,00.
The great news is that Capify’s application costs are free, we don’t charge you when you apply for a small business loan in Sydney. It’s obligation-free, and you can commit whenever you are ready.
Capify can provide Merchant Cash Advance, where this revolves around businesses gaining a lump sum of money and repaying it through minor percentages of their EFTPOS transactions.
Capify would greatly benefit the business as it would prevent cash flow shortages; thus, they can have the cash to pay debt payments, expenses, and unexpected costs.
Furthermore, enterprises are also introduced to the option of Sydney business loans that Capify can provide, increasing capital, thus increasing cash flow. Alongside this, they deliver expert advice that contains knowledge and techniques on how to improve cash management to assist in keeping your business as healthy as possible.
Capify is Australia’s first small business lender since 2008; we have built and maintained a google review of 4.5/5.
Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.
We don’t use interest rates for our funding solutions.
Instead Capify offers an agreed total payback amount. The payback amount depends on the type of business you operate and the term you require the business finance for. This way your business knows up front the total costs, making managing your cash flow easy.
Capify is a fin-tech and purely operates online. We do not have a physical branch. However, our office is in Parramatta.