Business Essentials

Promotion – AXA Business Insurance

Running a salon or barbering business is hard work, but AXA Business Insurance wants to make it that little bit easier…

HOW TO REDUCE YOUR SALON COSTS

Every penny you save becomes profit when you run a salon or barber shop, and that’s especially important during your first few years when you need to show growth.

Which expenses spring to mind first? Probably salaries, renting and business rates. It’s likely the cost of tea bags doesn’t feature highly. However, small business owners often underestimate the financial impact of the little things. Financial issues and the increase in underlying costs such as energy can make it hard for salons to make ends meet, let alone consider growth. Here, AXA Business Insurance suggests seven surprising costs you can cut.

INVEST IN ENERGY-EFFICIENT EQUIPMENT
Salons guzzle energy, so consider some alternatives. Swapping your regular light bulbs for their energy-efficient counterparts can make a significant difference to your bill, especially during the darker months. LED bulbs can last up to 30 years, so they’re a great investment.

CALL TIME ON BIG PHONE BILLS
Failing to shop around for the most competitive tariff can leave small business owners with a nasty surprise. One way to keep bills down is to make use of services such as Skype, which allow you to make calls over the internet and offer business packages, enabling you to monitor and manage monthly spend.

COMPARE PROVIDERS REGULARLY
Sit down once a year (or every quarter, if you have time) to compare energy providers. Most suppliers launch new deals every six months. Switching might not help much while the energy crisis is ongoing, but it’s always worth checking.

REFRESH YOUR REFRESHMENTS
The tea and coffee supply may seem like a minor consideration, but it’s easy to waste money if you don’t buy in bulk and shop around for the best deal.

CLAIM YOUR ALLOWABLE EXPENSES
From stationery and phone bills to insurance and staff costs, many small business expenses are tax deductible. Make sure you know what expenses you can claim so that you don’t pay any more tax than you need to. If there’s an allowable expense you’ve been missing out on, claiming it in the future may enable you to save more money for your business.

KEEP AN EYE ON USAGE
Charging gadgets, making countless cups of tea for clients or having the heat on during cold afternoons – electricity bills can quickly add up. A smart meter can help you track how much you’re using throughout the working day, and many suppliers offer them for free. Once you know which appliances are using the most energy, you can either swap them for more energy-efficient models or cut down usage.

TAKE SMALL STEPS IF BIG ONES ARE OUT OF REACH
If you try to do everything at once, it’ll feel like an impossible task. So, take on some small changes first and gradually add on more until your business is as cost-efficient as possible. To start, consider an audit to identify where money is being wasted. You might be surprised how soon the savings can stack up.

VISIT AXA BUSINESS GUARDIAN ANGEL FOR MORE USEFUL BLOGS, IN-DEPTH GUIDES AND PRACTICAL ADVICE FOR YOUR SMALL BUSINESS AT AXA.CO.UK/BGA