Covid 19 – how it affects hair and beauty salons



Richard McCabe

The old saying ” save some money for a rainy day” has never been more true.

The uncertainty of what will happen next- forced lockdown, self-isolation and staff getting ill is putting more pressure on everyone and I get the feeling that people are now ‘just wanting it to happen’ so they they get it over with.

But this is going to be around for months yet, so here is the Good, the Bad and the Ugly truth of the situation you are facing.

The Ugly…
Some salon owners do not have enough cashflow to survive this crisis and they will regrettably have to close their doors. With clients cancelling their appointments and being scared to leave their home, these salon owners will be feeling financial pressure like never before. If this is you, then you need to look at reducing as many of your bills as you can.
Can you reduce staff hours or salon hours and condense the working week?

The Bad…
This crisis is going to hurt some salon owners financially and they will feel cashflow-pain like never before. They have run their salons up to now with too much luxury and freedom. 

If you have ever seen any posts from me, you will have noticed me repeatedly harp on about not employing more staff until your salon is at 80% capacity and getting your staff to hit 3.5 x what you pay them. Not doing this eats most of your profits and cashflow, as wages are the biggest bill a salon encounters. 

Now is the time to set up systems to keep as many clients as you can. This is what we call ‘foundation building’ and many salons I see that wing it week-to-week, without foundations will be hurting right now. You can survive this and now is the time to tighten your belt with most bills and wages. Look at your staff and see where they need help, work on the client journey and give both your staff and clients more love. 

Do NOT stop working ON your business and use every resource you can. Marketing should be your key focus to grow your salon. Use internal and external marketing to fill those white spaces. Working behind the scenes is the best way to improve your salons takings now.

The Good…
I have been a salon owner for over 25 years and have navigated my salon through many hard times. 

There’s a lot of advice bouncing around the social world on what you should do. 

I have been there many times before and I will help you through this the best I can.

Salon owners that have strong foundations and a good wage % ratio will stand the best chance of not just surviving, but thriving through this. Having a good wage percentage, these salons will have a buffer as their profits will allow for the downturn. The good news for salons that come out of this crisis is that they will build a tighter ship. They will make sure they have more profit every week and they will never want to be in this situation again. Every salon that goes through a recession comes out stronger.

They will be more vigilante with their housekeeping and start treating their business more like a business.

There is hope…….

To quote Winston Churchill 
‘If you’re going through hell, keep going.’


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