Stronger finances for Leicester hairdressing group
We helped a local hairdresser grow from an underwhelming break even business, to a hairdressing group with several salons, making reliable profits and much improved margins.
Hours per month: 75
How we help
We’ve been working with this client since our inception, helping them to grow from an underwhelming break even business, to a hairdressing group with several salons, making reliable profits and much improved margins.
We cover the whole finance team for this client, including bookkeeping, payroll, credit control and finance director. We advise the stakeholders and management team on business development and offer key insight and focus from a financial perspective.
Monthly management accounts were integral to not only confirming the costings and profitability of various services at each of the salons are, but we also noticed that huge amounts were being spent unnecessarily on stock that would inevitably sit on shelves for months.
One of the things which was not previously being calculated was the cost of stock being used (not to be confused with items purchased). They now know how much shampoo, conditioner and colour is being used each month, bringing their in-salon product spend down from 24% to 16% of sales saving just short of £100,000 a year.
In our capacity as Finance Director, we helped them to interview and recruit a stock manager and implement new software and procedures. This fed right back to our bookkeepers to highlight how stock management was working.
As a result, the business now makes 5.6% more on a service than it did in 2016.
Through our management information, we noticed a drop in footfall. However, despite this, customers were spending more and we started to look at ways in which we could improve the margin on each visit (even the smallest percentage increase can make a huge difference to a business’ bottom line).
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