Should you consider other ways to bring income into your business?

Three salon owners discuss whether you should look at additional revenue streams

1 KEN PICTON, OWNER AT KEN PICTON SALON

“As a salon owner, diversifying your income streams can be a game-changer. Running a successful salon has been incredibly rewarding but setting up an artisan bar and deli alongside it has opened up new opportunities for growth and customer engagement. Picton &

Co. is located in our adjoining salon space.

We've always been a forward-thinking salon and we pride ourselves on a high-quality service and environment.

It’s all about experience-led hair, and that's the path I'm trying to emulate with the deli – experience-led food and retail. So far, having Picton & Co. next door has brought a whole new world of customers to the salon and enhanced the overall experience. Equally, clients can enjoy a coffee or a snack while waiting for their appointment, making their visit more enjoyable and adding value to our services. Diversifying helps stabilise income, especially in quieter periods for the salon or vice versa. It also provides an avenue for cross-promotions and we can explore multi-level marketing for both businesses, which boosts sales in both areas. In today's competitive market, thinking outside the box and exploring additional revenue streams can significantly enhance your business's resilience and growth. It isn't just a smart financial move; it enriches your brand and allows you to explore untapped passions you may have always dreamed of.”

2 ANDREW JOSE, OWNER AT ANDREW JOSE HAIR SALON AND ACADEMY

“I’m all for finding lucrative ways to make your salon truly multi-purpose and maximising every square inch, but with one caveat: it mustn’t disrupt your ultimate purpose of delivering great hair to your clients. That said, hairdressing salons often have under-utilised spaces that can be transformed to generate additional income. These areas, such as corners, walls, or high-traffic zones near entrances, can be monetised and used to generate cash in a creative way. An effective strategy is to lease these spaces to local businesses or small business pop-ups. In our case, we took a store cupboard with a low ceiling. It wasn’t suitable for hairdressing but it’s ideal as a beauty room, which we let out. Another option is to repurpose these spaces for experiential marketing. Hosting in-store events, workshops, or product demonstrations can draw more footfall, enhancing customer engagement and sales. Even small under-used spaces in your salon can increase your revenue by creating designated areas for exclusive promotions or seasonal merchandise, encouraging impulse purchases. By strategically utilising every square foot of the salon, you can boost your income but also enhance the overall ‘salon’ experience. When done well, you’re increasing your profits and also nurturing customer loyalty and satisfaction.”

3 CHRISTOPHER LAIRD, OWNER AT NOVEMBER COLLECTIVE

“It’s important to look at your space or business and question whether you are maximising every opportunity. Are you utilising every square metre of your building? Is the space being used as much as it can be, even in non-traditional ways? On the days you're not open are there opportunities to have that space become an academy? Looking at your business from a social aspect is just as crucial. Are you using your online space effectively? Having different income approaches is key. Building an online presence and making money from that is a really important way of, first, building your brand image, and second, having another income stream. The industry has changed so much, even in the past five years compared to the ten years before that. It's definitely a multi-channel business now. It’s not just about standing behind the chair - which is absolutely fine - but to maximise profits it's important to consider other sources of income. Expanding your business to a point where you can make extra money with good systems and procedures, and planning your goals around that, is vital. With everything costing so much it makes sense to utilise your income streams as much as you can. Diversifying your income sources isn't just advisable; it's necessary for sustaining and growing your business.”