August 22, 2019
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 Ditch Dirty or Outdated Equipment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 If your equipment is starting to look outdated or dirty, it may be time to get salon financing to purchase or lease new tools.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 For example, you can update existing decorations, peeling wallpaper, and outdated color schemes.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.