Q: Business at our beauty salon has been slow this year. Although we don’t owe money to any creditors, we’re not managing to take a wage ourselves. Is there any help we can get?
Dec 06 2008
Answered by: Clive Lewis Ask a question
Any solution probably involves two approaches – either getting more customers or cutting costs, or both. Getting more customers might involve leaflet drops/handouts, advertising, cut-price offers, etc… Cutting costs usually means either getting rid of staff or making savings such as on property costs. Have you tried approaching your landlord (assuming you are leasing premises) and asking for a temporary reduction in the rent? In normal circumstances they would not agree but in the current environment they might be more willing, thinking that some rent is better than no rent from empty premises. Go through all your expenses and decide if you can afford to cut back.
If this doesn’t yield a significant improvement in profits you need to think more radically. The current downturn could last until 2010. Are you willing or able to carry on at this level of profitability until then? Perhaps you might consider amalgamating with another salon? Alternatively, perhaps you should give up the shop and become a mobile beauty salon?
In the end it’s up to you whether you can carry on through this recession. But if you talk to Business Link as well as perhaps talking to your accountant, you should be in a position to decide.
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