Despite pandemic-related lockdowns becoming virtually a distant memory, many businesses in the beauty, hair, spa and aesthetic sectors are continuing to suffer the lingering impacts of COVID-19. After all, infection rates remain high in many areas of the country, so even though legislation around close contacts has been removed across multiple states recently, while this remains the case, we will continue to experience last-minute cancellations and changes in appointments.
This state of affairs has taken us all on a steep learning curve around flexibility within our businesses, including how to manage finances during a time where cash flow may be much less consistent than it once was. This has led many business owners and managers to ask the question: what are some simple ways I can improve cash flow to help things feel a little more secure?
Here are some suggestions that you might consider:
Be your own financial boss. Even if you utilise trusted experts to manage your books for you, nobody knows your business like you. Perhaps you could conceptualise some new methods and strategies that your on-hand experts have not considered. Developing a deep understanding of your own business financials could be the key to unlocking your potential.
Review your systems and processes. ALL of them! From your website and software to your booking system, if you’ve stuck with the same subscriptions for years purely out of convenience, perhaps there is some cutting or consolidating you could be doing to cut back.
Review your product and service ranges. In doing so, consider your clientele. What are their spending habits like? Discuss this with your team, in particular, whether you have received feedback regarding whether your prices are too high. While they may not be, if you carry product ranges whose individual products all sell for significant price tags, and your therapists tend to recommend several of these to each client, some budgets may not be able to accommodate these. In this case, perhaps there are some bundles you could introduce to assist these clients, or consider introducing products with a lower price bracket to cater to these needs in addition to clients with greater disposable income.
Lease your hardware. Rather than buying new hardware, you can usually lease it for cheaper through a Hardware as a Service (HaaS). The benefit of using HaaS is that the cost is spread out over the lifetime of the contract, rather than an upfront payment.
Pass costs on to clients where possible. In most circumstances, your clients are happy to pay a small additional service cost, due to the very normal increase in the cost of living we all experienced annually. When it comes to making a payment, consumers have many options; however, passing on the cost when a customer chooses to pay by credit card, will save you on monthly merchant transaction fees. An example of this is SmartPay’s zero cost eftpos. SmartPay provides clever eftpos terminals to thousands of small businesses that allow them to pass on the eftpos transaction fee to each client paying on card. These fees are very small on an individual scale, but can add up dramatically for businesses. You can also choose to manually adjust this per transaction, if there are those extra special clients you’d prefer not to pass the cost onto.
We hope that these tips assist in giving your small business a little boost, and if you’d like to start saving on your eftpos transaction fees, contact a Smartpay payment specialist on 1800 531 784 or visit their website.