Hairdressing is one of the many trades that can be carried out in a clients home. Hairdressers only need a pair of scissors a small stock of products comb and other accessories to cut and style a persons hair. But is it worth it? below I discuss some of the pros and cons of mobile hairdressing and perhaps uncover some little known truths.
I hope this article maybe useful to someone who is thinking of starting up in mobile hairdressing and help them to assess which is the best route to take salon based or mobile.
So you have a car, have all your tools a client list and decide to go into the flexible working of being mobile. You can book clients in when you want as much of what will allow get up late arrive home early?
Firstly nowadays if you use a car for business you must have the correct insurance often this will incur a higher premium. There could be an argument that the car is just insured for “personal” use social and pleasure and that if you had an accident that you would just say you where visiting a relative? Insurance companies are more and more tightening there belts and looking for people outside of the scope of this they may ask to prove you where on holiday from work or proof of travel.
Although going mobile there’s a degree of flexibility, its not often the case with what happens in reality is clients require you to work around them even more so that your mobile. Some clients see this that you are flexible and free being not tied to a salon. This means later nights at peoples houses traveling through rush hour traffic and getting home late at night after night calls to hair dress.
Tax and VAT
If your earnings exceed over £68,000 on a cumulative (on going basis) you are subject to VAT at the current rate (currently 17.5%) on all hairdressing service to the client. This drastically eats into profit plus the adding of personal tax to the fee and the cost of materials means quite a cut in margins.
The hairdressing industry is currently lobbying to have the VAT rate reduced to 6% for hairdressing and beauty services. To try to raise margins and also there is an argument that hairdressing is a needed service we can’t all walk around with long hair down to our feet or do-it-ourselves.
When setting up in any business there are two basic things to do before taking the risk:-
Do your research
This is the most important part before going into any new venture and its also the part that most people get wrong partly because of their desire to live the dream. Be hard on your plan scrutinize the competition how many the what why where and how. Also look at the possibility of future competition and threat of reducing your market.
Allot of people do not really Analise there costs, when I mean costs I mean true costs down to the penny, here’s an example.
Outgoings cost of car payment, car tax, insurance,fuel, wear and tear, cost of equipment and stock, fair wear and tear to equipment, necessary taxes. Add all this up on a yearly then monthly and drill down to a daily basis this will give you an idea of where you need to start from.
Best of luck