How to Use a Loan to Improve Your Salon Business Plan
It can be tempting to stay complacent with your salon’s current offerings, but you don’t want to lose business to a trendier, more up-to-date establishment. But even if you want to invest in your beauty or hair salon, it can be difficult to afford necessary costs. That’s where salon business loans come in!
In this post, we’ll explain what the top salon financing options are (including salon loans) and how you can use additional capital to improve your salon business plan. By investing in your salon, you can be confident in your business’s future!
The Top Salon Financing Options:
- Small Business Loan: With a term loan, you’ll receive a set amount of money that you’ll need to repay in a length of time set by the lender. Depending on the loan provider, it may be a weekly or monthly payment schedule.
- Merchant Cash Advances: If your establishment frequently accepts credit card payments, a cash advance might be the right financing option for you. You’ll receive a lump sum, and then you’ll remit a percentage of your business’s credit card transactions.
- Business Line of Credit: With a line of credit, you can get approved for a set amount of financing and borrow against it. If it’s a revolving line of credit, you can pay back the amount and then borrow up to that same amount as long as your bank account is open.
- Business Credit Card: To pay for salon costs, you could apply for a business credit card. Of course, if you have a low credit score or haven’t been operational for a long time, it may be challenging to qualify for a decent card. However, do your research, and you should be able to find a card that fits your financial situation.
How to Utilize Salon Financing to Improve Your Business Plan:
1. Ditch Dirty or Outdated Equipment
As a salon industry professional, you know that worn equipment is a huge faux pas. The tools that you use to serve customers should be top notch, and there’s no room for cutting costs in this area. If your equipment is starting to look outdated or dirty, it may be time to get salon financing to purchase or lease new tools. No one wants manicure equipment with questionable stains, or hair dryers that barely work!
2. Give Your Salon a Makeover
Owning a salon doesn’t just mean dolling up your customers. In fact, you should periodically give your salon a makeover, too! For example, you can update existing decorations, peeling wallpaper, and outdated color schemes.
If interior design isn’t your forte, hire a professional designer, or employ the help of a savvy friend using the funds from your loan. Giving your salon a makeover will attract additional customers, and you’ll be excited about going to work in a beautiful space every day.
3. Be a Show Off
Being a beauty salon owner means having the confidence to flaunt your products and services. One of the best ways to do this is to utilize additional working capital to pay for a marketing plan overhaul. Here are a few ways you can go about this:
- Post Sponsored Social Media Content: By publishing sponsored posts, you can target your audience and make sure they see your advertisements on Twitter, Facebook, and other social channels.
- Print Eye-Catching Flyers: To spread the word about your business, print aesthetically pleasing flyers that you can post in populated areas. Just make sure to verify that flyers can be placed in these areas first!
- Update Your Website: Using your salon loan, you can upgrade your website to have scheduling capabilities, a better design, and an online store where you can sell beauty products.
Don’t be afraid to humble brag about how fabulous your salon is. If you don’t say it, how will patrons know to come check it out?
4. Build Your Team
Every successful small business needs a group of talented professionals. If you’re currently low-staffed, don’t drive your current employees crazy by overworking them. Instead, hire some new associates to join your team.
Chances are, adding to your salon’s team will help you improve your customer service, and be less stressed. This is a good use of financing in your salon business plan and will alleviate stress felt by your employees.
5. Expand Your Services
You can’t expect patrons to treat themselves if you have a limited number of services. Basic manicures and pedicures won’t cut it for long; patrons want plenty of options to choose from. If you’re not sure what services to add to your repertoire, check out some creative beauty blogs and Instagram accounts. You’ll feel inspired in no time!
6. Think Bigger (Spaces)
No matter how relaxing your salon treatments are, if your space is cramped, it’s going to distract customers from the overall ambiance.
Using your loan, you can expand your space to accommodate as many customers as possible. Most likely, you’ll increase sales and be able to serve more customers without requiring them to wait.
7. Use as Extra Cash Flow
Sometimes, it’s great to have access to additional cash flow if your salon faces an emergency. For instance, maybe a dryer will suddenly break, or you’ll need to pay for a large inventory order. Having a loan to use as extra cash flow will allow you to afford these expenses, without having to cut other costs.
Conclusion: Invest in Your Salon’s Future
The salon industry is an awesome community to be a part of, and with a business loan you can embrace a myriad of business opportunities. Although these changes may take some financial planning and effort, they will be well-worth it and help your business flourish.
Editor’s Note: This post was updated for accuracy and comprehensiveness in August 2019.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.