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General

What to do when a stylist resigns | 11 practical steps

It happens. For whatever reason. And here’s a checklist of what you need to do as soon as it does:

Part 1. Financial Control & Information Security

  1. Block their user access to your reservation system (eg Phorest) and your business email if they have one.
  2. Inform them that all client information is owned by the salon and not them; and that taking client data with them is illegal under GDPR amongst other things; and that they cannot contact any client by any means.
  3. Remind them of any radial clause in their contract.
  4. Remind them that photos taken in the salon are owned by the salon and cannot be used for promoting themselves in their new venture.
  5. Consider letting them go immediately rather than working their notice period – especially if you think they’ll spend their notice period informing/contacting clients, bad mouthing you and your business or generally bringing staff morale down.
  6. Let your accountant/payroll provider know immediately so they can finalise pay. Also, check how many holidays they have taken and whether they still owe any staff advance, or have had training paid for, which they will need to pay back.
  7. Ask your accountant to calculate the net cash loss to the salon (this being the sales income they generate excluding VAT less their payroll cost (including ad ons like NI and pension). From this you can quickly foresee any likely cash flow issues and plan accordingly.

Part 2. Look after your clients and staff:

8. Make sure you contact the stylist’s clients asap

Have a positive story ready, keeping it up beat, and letting them know who will be taking over (giving a short paragraph about them); and that you’re really looking forward to seeing them at their next appointment.

9. Ensure your staff are on board

Give all your staff a clear sentence or two to say if anyone asks about the stylist who has left. Again, make it a positive message and be clear to your staff that there should be no gossiping with their Clients!

10. Monitor the stylist’s Clients

Some of their clients may well go with the stylist but you still have their contact details, so keep them on any marketing emails. They may well return!

11. Find out why the stylist is leaving

The more information you can glimmer when someone leaves, the better. Ask them 2 things:

i. why they are leaving (but probe, as it’s not always the first thing they say which is the real reason!)

ii. what do they think the salon could be doing better (don’t be defensive – just reflect later on what they say as they may well have a point and maybe discuss it with your more trusted stylists)

  • Posted on February 21st, 2020 in General

Why Won’t My Clients Rebook | Adam Chatterley

Salonfrog thinks this podcast is great!

And we have seen that the more successful salons are doing this already. It’s just a process that’s in place for them; and why we also recommend you keep an eye on your rebooking and pre booking KPI’s!

It definitely worth a listen and we’ve made a few points from it to show you why:

  • The absolute key is the lifetime value of clients rather than what they just spent on their last visit
  • Are you spending too much of your time chasing new clients rather than on the ones you already have?
  • Why do clients not rebook after a service?
  • A rebooking rate of 30% is too low!
  • What’s the difference between rebooking and pre booking and why both are important.
  • Have a process in place, as standard, to turn that ‘one visit’ client to a ‘repeat visit’ in the same way that you have a process for getting a new client in, in the first place. Ensure all staff know and follow this process!
  • The cost of getting new clients is much more expensive than increasing visits/spend of existing ones
  • You should be in charge of your salon’s future time – not your Clients – so you can resource and even take time off yourself rather than waiting until a week or two before to see how it’s going
  • Help your clients rebook at the right time for their hair type and they’ll appreciate it
  • What the perception of a fuller booking book (i.e. a busy salon) has on both your staff and your clients. And your potential prices!
  • When a client asks are you busy? Ensure your staff always answer yes.
  • Cancellations are likely to go down!

As Adam says, your Salon should be asking every Client this question, every time:

“Shall we get you booked in for next tine so you can get your preferred day and time.“

Here’s the link:

BBP 080 : Why Won’t My Clients Rebook?

 

  • Posted on February 12th, 2020 in General

Admit and commit

January has wizzed by and like most salon and barbershop owners you’ve been looking forwards to the year ahead. Maybe you’ve already reset your budget for the year, started revisiting your commission structure, or thinking of how to push retail sales more this year.

But it’s also a great time to do something called ‘admit and commit’; often known as ‘sorting out’ the white elephants in the room!

Admit:

What are the things that your business is not getting right.

Jot them down, in any order.

It might be around a specific stylist who’s not performing well; how you handle your stock; the Client’s journey from booking to chair; your online booking system; or whatever. You probably know what they are already!

Commit

Commit to sorting them out.

From the list, choose the easy pickings (the ones you can sort out quickly) and also (say) the top 3. Work out what you need to do, who needs to do it, and a time frame. Committing to sorting something out is the most important step. Then discard the rest.

Get your staff involved

Ask your staff to do the same. Or at least, ask them what they think the ‘Admits’ are for the salon. You might find they differ from what you think; and by getting your staff bought into the Admit/Commit process, you’ll find it easier to do.

Admit and Commit for 2020.

  • Posted on January 29th, 2020 in General

How to compete with the franchises to recruit (& keep) the best stylists | Raymond Bottone

Great video from Raymond at MySalonManager, which includes some interesting thoughts on:

  • How to recruit staff and keep them
  • How to deal with stylists asking for discounts for their friends
  • Apprentices running your social media
  • Funnelling Client enquiries
  • Inductions and Mentoring your new staff members

26 mins.

For more info:

www.mysalonmanager.co

soon to be

www.mysalonmanager.com

  • Posted on January 18th, 2020 in General

Budget dates for 2020

The Government has said its first Budget, presented by Sajid Javid will take place on 11 March 2020.

The Scottish Parliament has now announced that its 2020 Budget will be held on Thursday 6 February 2020, less than a week after the date now set for Brexit of 31 January 2020.

The original Scottish budget date was delayed as it was originally due to be held on the day of the general election and the Scottish parliament wanted to wait until the Chancellor of the Exchequer had held his first budget.

However, with that now scheduled for 11 March, Scotland cannot afford to wait, since they also have a deadline for setting their local authority budgets by 11 March.

  • Posted on January 16th, 2020 in General

NHBF self employed & black economy survey. Take part!

The NHBF has been invited to the Treasury to talk to government policy officials about self-employment and also the black economy.

The NHBF says

We hear a lot from Members who employ their staff about the difficulties they face competing with salons who have self-employed people working in them. The differences in costs and flexibility have advantages and disadvantages.”

“The Conservatives and other political parties have announced that they want to improve the rights of people working in the ‘gig’ economy and will clamp down on ‘bogus’ self-employment. Potentially, this could affect the future of self-employment in our industry.”

“We need to be confident we are representing your views ahead of these meetings, so please take 10 minutes to fill in this survey before Wednesday 5 February 2020.”

Salonfrog completed the survey and urge you to complete it as well, so that the NHBF can go armed with all the facts to Downing Street:

http://bit.ly/NHBF-SES

  • Posted on January 9th, 2020 in General

Election 2019 | manifesto comparison & how it affects salon & barbershop businesses

With the election only days away, Salonfrog has compared the manifestos of the main 4 parties to see how their policies would affect the businesses of salons and barbershops. For this, we’ve ignored Brexit and Indi ref 2 and instead concentrated on the tax implications of each:

In summary:

 CurrentlyConservativeLabourSNPLib Dem
Corporation Tax19% but by law will reduce to 17% Apr 2020Keep at 19%Increase to 21% (or 26% if income > £300k-Increase to 20%
Income TaxEngland, Scotland, Wales set their own but basic around 20%No changeNew 45% tax for income > £80kNo changeAll rate increase by 1%
National InsuranceEee:12% over £8,632 threshold
Ers:13.8% over £8,632 threshold
Raise threshold to £9,500.
Increase employment allowance £3k->£4k
-Devolve to Scotland.
Decrease Employers NI.
Increase Employment allowance.
Review the whole NI system.
DividendsFirst £2k - 0%
Basic rate 7.5%
No changeIncrease to income tax rates! Around 20%.
Withdraw £2k 0%.
--
ContractorsReview tax treatmentReview tax treatmentReview tax treatmentReview tax treatmentReview tax treatment
VAT20%
Threshold £85k
No changeNo changeNo changeNo change
Business RatesReviewReviewDevolve to Scotland and reviewReplace with commercial landlord tax
NLWAge 25+
£8.21ph
Increase to £10.50 over 5 years.
Reduce age to 23 (then to 21 by 2024)
Increase to £10 from age 16 in 2020Increase to £10 minimumTo review
  • Posted on December 7th, 2019 in General

Salon owners (and their staff) should check their NI Qualifying Years

Although it may seem a long way off for some, you should check your NI Qualifying Years regularly. We tell you why & how here.

Background

To get the full basic State Pension when you reach retirement age, you need to have earned 30 “qualifying years” of National Insurance contributions or credits.

A Qualifying Year is credited to you when you pay enough national insurance during that year, or for some reason you can claim a ‘free’ credit for that year.

If you have fewer than 30 qualifying years when you retire, your basic State Pension will be less than the full rate (currently £129.20 per week). However by checking your position regularly, you can ensure you earn the required 30 years (or at least close to it). For example, you might be able to top up ‘missing years’ or claim ‘credits’ to add to your total score – but there are time limits to do this. So read on…

What to do:

1st: Check what you have

Check how many years’ credits you have. You can do this on line and you’ll need you Government Gateway user ID:

https://www.gov.uk/check-national-insurance-record

2nd: See if you have any ‘free’ credit years you can add on

You may be able to get National Insurance credits even if you’re not paying National Insurance, for example when you’re claiming benefits because you’re ill or unemployed, or have taken time off to raise children. Have a look here to see if you can claim any missing years:

https://www.gov.uk/national-insurance-credits

3rd: Decide if you need to plug the gap

If you have any gap years, decide whether you want (or need) to make additional contributions or claim credits to plug the gap.

For example, if you already have 26 credit years and you plan to work for at least another 4 years, then there’s little need to plug any gaps. However, if you have 10 credit years and only plan to work for another 4 years, it may be worth catching up.

You can make voluntary contributions to plug the gap, but you need to check your eligibility here:

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

Final points

Remember to tell your staff, family and friends to do the same! Feel free to pass them the link to this Article.

Feel free to contact us should you have any questions.

Salonfrog’s Andrew receives his BFP award

Andrew has been a member of the Institute of Chartered Accountants for 20+ years, and this week received his Business & Finance Professional status: so he can now put ‘BFP’ alongside his existing ‘ACA’ letters after his name.

We thought it was worth celebrating!

  • Posted on November 21st, 2019 in General

Should salon and barbershop owners have a will?

Do you have a will in place, or  are you just putting it off?

We all know that having a will in place is a no brainer but as it transpires, half of the adults in the UK don’t get round to making one. A story reported in the FT recently definitely highlights the mess you can get into if you die intestate.

Perhaps we need such shocking news stories as a ‘conversation starter’ to prompt thinking about the division of our assets after our death: whether we have children, or not.

Latest case

A shocking case was reported in the FT of two step-sisters who were arguing over which of them should inherit their late parents’ house. The elderly couple had been found dead in their home, and it was not possible to determine who had died first.

The situation was complicated because the father had not made a will, and his younger wife had made no provision in her will for her step daughter. If the wife was deemed to have died first her share in the home would pass to her husband. Under the intestacy rules his estate would pass only to his daughter and not to his wife’s daughter.

If the husband died first, the wife would inherit the property and it then would pass only to her own daughter under her will.

The Court decided that the Law of Property Act 1925 should apply, which determines that the elder of the two is deemed to have died first. The wife’s daughter thus inherited the entire property to the exclusion of her step-sister.

This gordian knot would have been easier to unwind if both individuals had made wills with express provision for both daughters.

DIY wills or not?

You can put your own will together, or even buy a DIY will from amazon; and this might be ok if your will is simple. But generally it is recommended to instruct a solicitor to do this.

I was looking at an interesting article on how to get a solicitor-written wills in return for a small charity donation, which may be of interest to you:

https://www.moneysavingexpert.com/family/free-cheap-wills/

  • Posted on November 15th, 2019 in General

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