Business Advice

 

LEGAL: RENT REVIEWS

Posted by Annette Hanford
Dated: October 30, 2008 12:00 AM

OCT RENT.jpgTHE LIE OF THE LAND

If you rent your salon it's likely your rent will be up for review at some point. But what options are open to tenants and what rights do you have? Philippa Aldrich reports

Your two biggest - and fixed - costs are staff and premises. To an extent, you can control staffing costs, but there may well be times when your landlord appears to act against you. Most commercial leases these days contain a mechanism for the rent to be reviewed at regular intervals, usually three or five years. But what should you do if hit with a request by a landlord for a significant rent increase?

WHAT TYPE OF RENT REVIEW HAVE I GOT? 

First, tenants should have a look at the lease to identify the type of rent review being invoked. Some leases include clauses that provide for set increases in rent. The lease might, for example, provide that the annual rent will increase after three years. It is unlikely in this case that the tenant will be able to oppose an increase in year three as he has effectively agreed to it in advance.
Alternatively, the lease may contain an 'escalation' type of rent review where an index, such as the retail price index, is used as a basis for calculating the rent rise. Again, provided the right index has been used and the maths is correct, there will be little opportunity for the tenant to object.

Other rents are linked to turn-over, whereby the landlord will take a set percentage of the income. It is worth checking the landlord's calculations.

READ ON FOR MORE ADVICE...

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BABTAC'S BEST ROADSHOW

Posted by Sasha Lill
Dated: July 13, 2008 12:00 AM

BABTAC'S (British Association of Beauty Therapy and Cosmetology) country-wide roadshows (BEST - Beauty, Education, Seminars and Training), begain in Leeds.  Sasha Lill sits in on HR consultant and employment law expert, David Wright's lecture.

 

LEARN HOW TO MANAGE YOUR STAFF EFFECTIVELY

Salon owners spend thousands on premises and products but miss the chance to maximise the benefit of their human resource - their staff, who determine how good the salon is.

As an HR consultant and employment law expert, David Wright knows that employing staff can be a nightmare and employment law, complex. With 100,000+ tribunals held each year, he stressed the need to know what the employment risks are before you start.

In his seminar, Ten Tips To Effectively Manage Your Staff, David advised on how to use such things as your contract of employment ("the most valuable document you have") and the law to your advantage.

Subjects covered included: how to appoint the right staff; using a long probationary period with tough targets to make sure you keep only the best staff; and minimising the disruption of holiday entitlement by ensuring leave isn't taken at your busiest period.

Recognising that staff need motivation, David touched on training and how to recover costs from staff who leave within a short period of time, plus how your conditions of service can reward good performers and loyalty, as well as help minimise costs. He discussed the benefits of flexible hours and part-time working as a positive not a negative, giving practical examples of how this works for a salon. Holiday entitlement, notice periods and maternity rights also featured, as well as disciplinary issues and procedures.

Whatever employment issue you face, get advice before you start - ignorance is bliss but no defence, warned David.

 
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INSURANCE: TAKE COVER

Posted by Annette Hanford
Dated: May 22, 2008 8:50 AM

Whether you're looking to renew your present policy, or take out cover for the first time, it pays to study what's available when it comes to insurance. But where do you start in this minefield? Marc Loud, director, Park Insurance, finds out more

The internet is a well-developed platform for specialist brokers in this field, who promote deals they have negotiated with insurers. But you must be satisfied with the policy offered and any quotation before you commit - you need the policy to perform if the worst happens, so the more time spent on research will enhance your knowledge and ability to make the right decision.

Buying insurance is not just about claims, but it is also a tool for determining how risk can be minimised. Some brokers highlight risk management, so any measures taken will help to maintain competitive premiums and minimise consequences.

One of the main points to consider is the insurer, and I advise using a specialist broker, especially for salons.

Many brokers offer cover with insurers with little security and policies with low liability limits. I have also seen some insurers cover risks they don't understand.

For example, thread vein removal is covered under many policies, but by laser removal only, and not sclerotherapy.

A broker will advise the insurer that the salon offers this treatment - acceptable on their list - but don't understand this can also be done by injection. Most policies have a clause stating that treatments that pierce the skin are not covered. So in this instance, the salon owner assumes they have cover, when in reality they don't.

HOW MUCH COVER?

Insurance is one of the basic costs of doing business - responsible businesses budget for the appropriate coverage as a precautionary measure in the event of a loss-- especially a catastrophic one.

 

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JOURNAL: ZARA ELLIOT, ESSENCE

Posted by Annette Hanford
Dated: May 20, 2008 2:55 PM

SPECIAL OFFERS TO BOOST SALON COFFERS

APRIL ZARA EDIT 1.JPGZara Elliot is the owner of Essence, a three-treatment room salon in Sutton, Surrey. The business opened in November 2005 and she employs four other therapists (full- and part-time), offering Dermalogica, MD Formulations, Caci Chromaclear MDA, Bio Ultimate non-surgical facelift, Fake Bake self tan, Jessica nailcare, and Bare Escentuals mineral make-up.

While increased profits were expected, business at Essence is on a par with last year as a result of clients tightening their belts. So, to further promote her salon, Zara is re-working its website and embarking on e-marketing - collecting email addresses for her new, informative newsletters.

To encourage clients to register on the site, she is offering an introductory 50% first treatment discount during specified times.

Other salon offers include a free MD Formulations facial - a £25 booking fee is redeemable against further bookings or retail products to encourage clients to try the glycolic treatment.

Clients can also benefit from getting any third facial free
when they pay for two treatments. This helps boost business during office hours.

Approaching Mother's Day, gift vouchers proved popular, but these are usually used for facial treatments as Zara says people now consider skincare as a necessity, whereas body treatments are still regarded as a luxury and more associated with spas. However, she hopes new bodycare products from Dermalogica will help this area.

After training with LaStone's Jane Scrivner, Zara's team have been practising their hot stone massage techniques. This will be introduced in the next couple of months to tie-in with the new website launch. Zara experienced the treatment on a trip to LA with Dermalogica and couldn't wait to introduce it to the local area.

She met many other salon owners and therapists on the trip and has made some fantastic friends, of whom she can bounce ideas off and keep herself in "the know".

Looking to the future, she is investigating laser hair reduction, but her main aim is to rid the industry of its fluffy image. Her well-trained staff are respectful and help solve people's skincare problems. They really make a difference, she says.

 
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JANET'S JOURNAL see your salon as your clients do

Posted by Annette Hanford
Dated: November 4, 2007 12:00 AM

Although November is a month when the salon starts getting busy -- everyone is buzzing with excitement about Christmas -- I warn you not to rest on your laurels or let your guard down. Cast your eye around the salon and look at the finer details. As it’s these that can make or break you converting a new client into a regular client.

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SUNQUEST'S TOP TIPS FOR MAXIMISING OFF-SEASON PROFITS

Posted by Annette Hanford
Dated: October 15, 2007 2:49 PM

Indoor tanning specialists Sunquest is renowned for offering all-round marketing and promotional support to its tanning salon accounts.

Gary%20Hobson.jpg
Gary Hobson

Here, sales director Gary Hobson, provides some top tips on how salons can increase footfall during the quieter winter months and, as a direct result, maximise profits from their tanning equipment.

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BUILD YOUR BUSINESS -- ON TV

Posted by Annette Hanford
Dated: October 15, 2007 11:03 AM

RETAIL THERAPY

shopping.jpg

The BBC is looking for independent high street shops to take part in a brand new BBC2 series.

Geoff Burch is a charismatic retail guru renowned for his unique wit and straight talking as much as for his fanaticism for business.

Once described by the Financial Times as the "Hells Angel of Management Consultancy" on account of his love for Harley Davidson motorbikes, Geoff has impressive credentials, having worked with some of the world's leading blue chip companies.

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PERFORMING RIGHT SOCIETY MUSIC LICENCE

Posted by Annette Hanford
Dated: October 9, 2007 10:53 AM

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DID YOU KNOW...?

74% more UK hairdressers and beauty therapists have bought a Performing Right Society Music licence in the past two years.

PRS public performance sales managing director Keith Gilbert said: "Many hairdressers and beauty therapists recognise that playing the right kind of music can enhance the environment they provide."

Click the link -- PRS -- or call 0800 068 4828 for more information.

 
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JANET'S JOURNAL seasonal changes

Posted by Annette Hanford
Dated: October 3, 2007 5:06 PM

The change of seasons always leaves me looking for something new. I’ve restrained myself and will not completely change the salon treatment menu, but will revitalise its seasonal specials in a number of ways.

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Find out how you can do the same.

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GETTING IT RIGHT -- PRODUCT DEVELOPMENT

Posted by Annette Hanford
Dated: July 26, 2007 6:04 PM

Getting out and about in the industry is one of the best parts of the job -- seeing the people behind the brands and sometimes getting to experience the products and treatments first-hand can't be beaten.

It's also a really valuable opportunity to find out what people think of the magazine.

People often say they enjoy the feature articles and like reading about new products, which is very flattering, but perhaps even more so, was when one company recently asked me for my opinion.

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