I have a salon where I make hair and sell some hair product. I have someone that works for me and I pay her salary at the end of the month.
I don’t usually stay in the shop because I work elsewhere.
What I am trying to say is that even the products I buy and sales from hair dressing I don’t see enough income to cover the overheads, and I will end up paying from my pocket.
Right now, I am thinking of closing down the shop because I pay salary from my pocket.
Please what shall I do?
This situation is clearly untenable. I assume you have the shop to make money from it, not to lose money.
You need to review the business and either increase sales, reduce costs or close.
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Let’s look at what a few of the possible problems might be .
How much business is being done, either in hairdressing or sale of product? can you drive more business by advertising, promotion, distributing flyers.
Are your prices, right? What is the competition charging?
Are you sourcing your product correctly? Paying the right price, charging the correct retail price?
Is the shop busy? Can your employee handle more work?
should you reduce the hours you are open and pay her less??
Can you reduce your costs or overheads in any other way?
One other thing to consider. Is your employee honest?
So now armed with the answers to your research, what’s your action plan? increase sales, reduce costs or close?