Competition has always been heavy between beauty or hair salons. They are held to a higher standard than other brick-and-mortar businesses, largely because appearance is such a major element of their success. Beauty salons must look pristine at all times, not letting a single day go by with outdated furniture or equipment. Employees must be top notch, because disappointed customers could simply give their business to the countless other salons in the area.
As if regular maintenance wasn’t expensive enough, few salons can stay relevant and raise margins by offering the same services. It sometimes seems like each day another competitor is offering something new to satisfy ongoing increases in demand.
With so many recurring expenses to worry about, it’s only logical for beauty or hair salons to seek small business funding when a significant investment is in their sights.
Virtuosos Of Versatility
The average salon customer prefers a one-stop experience featuring an array of services and tools for stimulation. You might a hear customer ask for a manicure while she is getting her hair done. Many salons now provide complementary five to ten-minute massages following certain services. What these customers tend to forget is that you can’t offer new services without new equipment and, most likely, new employees. If you implement these new services, you’d better do them well because customers are more partial to salons that are great at one thing rather than just “okay” at a few things.
But it’s not as if this change can magically take place overnight. Customers are not just going to come through the door the moment you expand. United Capital Source has several solutions to both dilemmas in the form of working capital loans, business lines of credit, and credit card processing loans tailored specifically for the cash flow challenges of beauty salons. These innovative business funding programs can help you make important purchases and/or cover day-to-day operations until sales begin to increase.
No Industry Is Too Risky For UCS
Whether you are looking to buy new equipment or replacements, you need cash now in order to stay competitive. Beauty salons often have trouble securing bank loans, however, due to a variety of circumstances such as poor credit history, tight cash flow, or having more cash on hand than in the form of receivables. But at United Capital Source, these obstacles won’t impact your chances of approval if you can show a formidable sales record over a considerable period of time. Our beauty salon clients can access working capital that is approved in a matter of days.
Training For Perfection
Allí Webb is the founder of Drybar, a bar-themed hair salon that is currently preparing to open its 100th location. In September of 2017, Webb told Entrepreneur magazine that a team of highly-skilled stylists has been essential in keeping service consistent despite massive growth. Drybar turns decent stylists into great ones with a thorough training program. This way, every customer receives the same level of service no matter when they come in or which location they choose.
Training can take time, but you’ve got to pay back the debt you accrued from your new equipment. You’ll be pleased to learn that salons are ideal candidates for a merchant cash advance because they typically conduct a decent portion of sales via credit card. A merchant cash advance can also be approved for businesses that have tight cash flow but strong projections that will help solve these cash flow issues. Working capital loans could be advantageous as well if you have a training program that allows you to predict when your new employee will be ready to perform, a.k.a how long you will need extra funding to run your business.
With a merchant cash advance, the repayment percentage is tied to sales volume so cash flow won’t be interrupted until your employees begin making sales and putting new services to work. A business line of credit is an attractive option if you need to replace numerous pieces equipment on a moment’s notice. This program is best for expensive, short-term investments, and when one piece of equipment needs to be replaced, odds are, another will follow shortly after.
Just The Beginning
The beauty salons that stand out go the extra mile to show their personality or provide comfort. Some, like Drybar, offer alcoholic beverages in a space that resembles, yup, you guessed it, a bar. Others might have big screen TVs set up to play movies all throughout the space in addition to a huge selection of magazines to read. The point is, there are many changes you can make to establish an identity and create what is known as a “customer experience.”
At United Capital Source, our number one priority is not drawing a profit but seeing your business grow, and this can only be accomplished by putting you in a position for further growth after your funding has been repaid in full. This is why so many of our clients end up taking out second rounds of funding with even more convenient terms because we now they can pay back debt without trouble. You could also get funded even quicker than your first round of funding, quite possibly with better terms.
Breaking The Cycle
Another major priority of United Capital Source is eliminating the obstacles women face while trying to obtain small business loans for beauty salons. We are aware that female-driven businesses like beauty salons or retail stores are unfairly penalized for belonging to a “risky” industry. You won’t find this hesitation to approve vital funding at United Capital Source, where we specialize in small business loans for women. With just a single phone call or email, you’ll find that women are at an advantage, not a disadvantage at UCS, and will be judged almost exclusively by the performance of their businesses!