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Is Your Business Prepared For Success in 2025?

As the year wraps up, small-to-medium businesses can prepare for a successful 2025 by tackling key tasks before December ends. Rest and relaxation are vital to recharge for the year ahead, alongside an annual review or creation of a business plan to set clear goals and strategies for growth. Businesses should also revisit their marketing plans, reflecting on successes and challenges from 2024, and adjust strategies to better achieve revenue targets in the new year.

Financial housekeeping is crucial, including chasing overdue invoices, reconciling accounts, and ensuring all tax obligations are met. Gratitude towards customers can go a long way, whether through thank-you notes, small gifts, or loyalty incentives. Businesses should also check their compliance with updated regulations, review licenses, and optimize their subscriptions to ensure cost-effectiveness.

Finally, celebrate the year’s achievements, acknowledging both individual and team successes. With these steps, SMEs can enter 2025 with confidence, a refreshed mindset, and a solid foundation for growth.

Discover the Top UK Towns Thriving in the Beauty Business Boom

The beauty industry in the UK is experiencing a remarkable boom, with Chatham in Kent leading the charge with an 83% increase in beauty businesses since 2020. This surge is not just a local phenomenon; towns like Oldham and Watford are also seeing significant growth, reflecting a nationwide trend.

The High Street Trend Report by Sumup highlights that the beauty sector has grown by 9% overall since 2020, driven by strong consumer demand and the influence of social media platforms like TikTok.

In this competitive landscape, the key to success lies in exceptional service and client loyalty. Beauty businesses are more than just service providers; they offer personal connections and experiences that leave clients feeling confident. As the industry continues to expand, maintaining high-quality, in-store experiences is crucial. The report underscores the importance of understanding client needs and preferences, suggesting that attention to detail and a seamless customer journey are vital for standing out.

2024 Unwrapped 📅

As we look back on 2024, it’s clear this year has been one of significant transformation for the UK’s small business community. Here are the standout stories that shaped the landscape:

1. Two in Five Salons Contemplate Closure Post-Budget

The Autumn Budget introduced a 1.2 percentage point increase in employer National Insurance contributions, raising the rate to 15% from April. Additionally, the salary threshold for these contributions was lowered from £9,100 to £5,000. These changes have intensified financial pressures on salons, with labour costs constituting approximately 50% of expenses. A survey by the British Hair Consortium revealed that two in five salons are contemplating closure or transitioning to a self-employed model to mitigate these increased costs.

2. In-demand Hairdressers Are Downsizing

There is a growing trend among hairdressers to operate smaller, more intimate studios, moving away from traditional large salons. This shift caters to clients seeking personalised and private experiences. Salons are adapting by offering flexible workspaces, including amenities like reliable Wi-Fi and quiet areas, to accommodate clients who wish to work during their appointments.

3. HNBF Pursues VAT Reforms for Sector

The National Hair & Beauty Federation (NHBF) has been actively advocating for VAT reforms to support the sector. Proposals include introducing a tiered VAT system to incentivize growth and alleviate financial burdens on salons. Additionally, the NHBF is collaborating with the NHS on the 'Every Mind Matters' campaign, emphasizing mental health and well-being within the industry.

4. Labour Government's Policy Impact

The Labour Party's victory in the general election has introduced new policy directions affecting the beauty industry. Priorities include economic stability, revising the business rates system, and supporting small businesses. Industry members express hopes for restored tax-free shopping, enhanced support for exports, and a focus on sustainability and creative industries.

5. A Snapshot of a Resilient Industry

Despite economic challenges, the UK beauty industry has demonstrated resilience. Employment in the sector increased by 10% in 2023, totalling 418,000 jobs, surpassing the real estate industry. The hair and beauty services sector alone accounts for 224,000 of these jobs. Looking ahead, the industry is projected to continue its growth trajectory, with forecasts indicating a 3% growth rate for 2025, outpacing the broader economy's expected 1% growth.

Celebrating success 🌟

Weston Salon Triumphs as Best at Beauty Awards

Aesthetics by Erin, a beauty salon in Weston-super-Mare, has been named the best beauty salon in the UK at the Beauty and Aesthetic Awards. Run by Erin Burns and her husband Matt, the salon competed in four categories and was invited to the national awards in Manchester, where it triumphed over competitors from the UK and Ireland.

Erin was also recognised as one of the top 10 female entrepreneurs in the UK, placing eighth. She expressed her pride in the recognition, attributing the success to her clinic’s patient-centred approach and dedication to excellence. The salon, which opened in 2022, is operated by Erin, a part-time midwife and experienced aesthetic practitioner with over a decade of experience in the beauty industry.

Benny & Co Salon Wins Prestigious Award Within First Month of Opening

Benny & Co, a new luxury hair salon in Knutsford, has been recognised at The Fellowship Luncheon and Hair Awards 2024 less than a month after opening. Co-owner and creative director Jamie Benny, who relocated from London after 19 years in the industry, was awarded the prestigious Patron of Honour, joining only 15 recipients over the past 60 years.

The salon’s team member Jessica Dennis also won the Clubstar Art Team Achiever of the Year award for her participation in a project led by Jamie to develop young hairdressing talent. Jamie and his partner Rachel Toase opened the salon on Regent Street with a commitment to innovation, education, and community engagement. The business aims to bring fresh and wearable designs to clients while staying connected with the local Knutsford community through events and monthly pop-ups.

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