It is always important to have some sort of wiggle-room in your expenses, because you never know when you might hit a slow down in clients or just a lack of an incoming flash flow. When running a razor-thing budget it often makes it incredibly difficult to stay on top of everything, and should a sudden expense come up it is enough to send you spiraling downwards. This is exactly why you need to utilize a few different tricks in order to find that wiggle-room and free up some available cash for your salon, just to make sure you are covered in case such an unexpected financial downturn occurs. Eventually you might have to take out a loan, but if your salon has bad credit you’ll find it to be incredibly difficult for salon loans with bad credit to go through. Banks see salon loans with bad credit as a possible loss for them, so generally the banks avoid handing out these kinds of financial assistance.
Plan Out All Purchases
For starters, never just order products on a whim. This is going to be very bad because you don’t know exactly what you need, what is selling well and what you already have too much of. You need to look over all of the products and services you offer, see what are the most popular and what material just isn’t selling. There is no need to buy more of a particular product should you not actually sell it very often. This clears up storage space for actual goods that you do need at the salon, and by monitoring everything you purchase it should help you save a little bit of money on every order you make.
Look at Staffing
While you probably want to have as many stylists as you can on hand, if some are just standing around for good portions of the day there is no need to have them inside the salon if you are paying an hourly wage. Some salons do charge rent for chairs, in which case it is not costing you anything to have them inside the facility, but if you instead pay hourly you need to make sure you schedule accordingly. Keep your most popular stylists on hand and try to schedule the rest to fill in the gaps. There is no need to overpay when nobody is coming in. During slower times of the year you might not need as many stylists on hand, so save yourself some serious money and cut down on hours.
Avoid Costly Upgrades
Styling equipment is incredibly expensive, and most equipment really doesn’t give you much of an improvement over what you already had. Sure, the different hair dryers and neck trimmers might look great, but these products are not going to do really anything your current equipment is not already capable of doing, and by not upgrading you’ll save yourself some serious money. After all, a client is not going to return for business because you have a certain blow dryer, but because of the overall service they received.
Alternatives to Salon Loans with Bad Credit
You might not be able to obtain salon loans with bad credit through your bank, but there are other options available to you. With a loan alternative you are able to receive the necessary funding you need in order to purchase needed goods or to bring in a new stylists that is able to drastically help your business. With the additional money on hand you can push the salon into the future, without having to worry about the salon’s bad credit history.
Looking for Funding for Your Salon?
Click here to find out how to get a loan alternative from Principis Capital.