Frequently Asked Questions with NHBF: How to Run a Successful Salon
The National Hair & Beauty Federation (NHBF) have answered their members’ frequently asked questions on how to run a successful salon and barbershop.
NHBF is the UK’s largest trade association representing the hair, beauty, and barbering industries. Since 1942, it has assisted Members in running successful and profitable hair and beauty businesses by providing advice, specialist support, and tailored services to meet the unique challenges of running a salon or barbershop. Here are some of the most frequently asked questions that the NHBF membership team has received.
Do I have to give my staff an extra day for the Jubilee holiday?
There is no statutory right to time off on any public holiday. Therefore, the entitlement to additional leave on 3 June will depend on the specific wording of your contracts of employment.
Do your contracts of employment include wording similar to the following?
“You are entitled to [number] days’ paid holiday each year. In addition, you are entitled to take public holidays”.
Your employees will be entitled to benefit and be paid for the additional day of leave.
The law requires you to issue all staff with statements of terms of conditions of employment. The NHBF has done all the hard work for you, and membership comes complete with a Staff Handbook, download NHBF’s ready-made Employment of Contract. (Free for NHBF Members).
How do I deal with employed staff going self-employed?
The employee must give proper notice to resign, P45 must be issued, be careful not to be seen in any way as a dismissal and you must not continue to treat them as an employee (no training, no managerial role, no control over what to wear, what products to use, what prices to charge). Make it clear on your website these people are self-employed. Chair renters should seek advice regarding any insurance cover they may need, have their own complaints policy etc. Clients should be made aware that they are no longer employed. Salon owner may effectively be handing over their clients to the contractor.
Are you thinking about becoming a self-employed chair, space or room renter? If so, there’s a lot to consider. Download NHBF’s Chair, Space and Room Renting Guide.
How can I handle staff holidays and absences?
Your employees may be off work for a number of reasons, from illness to maternity leave to annual leave and emergency leave.
UK law says all employees are entitled to paid holiday. Employees are entitled to a minimum of 5.6 weeks of paid annual leave. This means that a stylist or therapist who works five days a week should get at least 28-days paid annual leave. Part-time employees’ annual leave will be pro-rata depending on how many hours/days they work each week. Since March 2020, workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next two leave years.
NHBF Members can call for free expert help with annual leave entitlement. Read the NHBF blog on how should you deal with bank holidays, maternity leave and days you’re not open?
How can I manage the performance of my staff members?
Keeping abreast of how your employees perform is a key component of running a successful business.
Meeting company goals, motivating employees, and acting when employees are struggling are all impacted by managing the performance of employees.
Effective performance management creates a space where you and your employees can produce excellent work and perform to the best of your abilities.
How can I improve cash flow so my business thrives and grows?
A major cause of business failure is running out of cash. Even a profitable salon or barbershop can fail because of poor cash flow. It is the single most important issue for any business. Your cash flow consists of the money you are bringing in and the money you are spending.
The secret is to keep your eye firmly on the ball and to do that, you’ll need a simple cash flow forecast.
Don’t worry – this isn’t rocket science, but it is an essential part of your financial planning to help ensure you grow and prosper as a business.
How can I increase client loyalty in my salon?
Gaining new salon or barbershop clients is important – but make sure this isn’t at the expense of your existing ones. Long-term loyal clients are the bedrock of your business, but you have to earn their continued custom.
A good starting point is to do a short questionnaire to understand your customers’ wants and needs.
To keep your clients coming back, you have to make them feel respected when they come to your salon or barbershop. If you do not value your clients, they will likely look for other options locally. Always do a consultation before every appointment.
Always try to personalise your service. Make a mental note of clients’ comments during previous appointments.
Loyalty schemes are a great way to keep your hair and beauty clients coming back. For example, a set amount of loyalty points per visit could lead to a discount on their next treatment.
How can I avoid cancellations and no-shows?
In addition to being frustrating, no-shows and late cancellations can seriously affect your profit margin and cash flow, also with the continuing challenges of COVID-19. There will be more cases of people dropping out due to isolation.
You can take steps to reduce no-shows and late cancellations, for example, by building good relationships with your clients. When they believe you value them as individuals and appreciate them as a salon employee, they are less likely to let you down. If you do get a last-minute cancellation, think of it as an opportunity for you to publish the new opening on your social media channels.
Send out reminder text messages a few days in advance of the appointment. You can use salon software to automate appointment reminders.
Not a Member? Quote HJO25 before the end of July to receive a £25 discount on your membership fee. www.nhbf.co.uk/join/
This is a sponsored post in collaboration with NHBF.