Many hair and beauty businesses across NSW are facing economic challenges and seeking the right advice and support is crucial for their survival and growth. According to research from CPA Australia, many business owners tend to disengage and avoid seeking advice when they encounter financial difficulty[1]. In these tough times it can be tempting for business owners to ignore the warning signs.
Gavan Ord, CPA Australia’s Senior Manager, Business and Investment Policy, explains that many business owners only re-engage when it’s too late, when their business is insolvent, and the only option is liquidation.
“We surveyed small businesses from 2020 to 2022 and found that more than three-quarters (77%) of small businesses who did not seek advice either shrank or did not grow. We know that many hairdressers are great at the technical aspects of their jobs but often neglect the planning and running of their business, and this can place their business at risk.”
“On the other hand, we found that businesses that seek professional advice early and regularly are more likely to survive and grow. The earlier businesses in difficulty engage, the more options there are to save their business or to exit with dignity and start afresh. This is particularly important in the current economic climate.”
Seeking professional advice can be instrumental in avoiding costly mistakes and making informed decisions. Business advice can come from various sources, including industry associations like the Hair & Beauty Australia Industry Association (HABA) which can provide guidance on industrial relations, workplace health and safety, contracts and other relevant matters. Accountants and other professional service providers can offer business and financial support and advice, while government agencies like Service NSW for Business can assist with navigating government supports and license requirements and offer business advice.
An example of the benefits of seeking advice is Oh Kyung Sook Hair Studio, a hair salon located in Eastwood with the business owner looking to expand. Support was sought from Service NSW for Business to help with the opening of a second salon in Lidcombe. Their business advisor assisted with customer retention strategies, staff hiring and training, financial planning and marketing, and the business is now successfully running the two salons.
To find out more about advisory supports for your business talk to your industry association, accountant or professional service provider. You can also call Service NSW for Business on 13 77 88, Monday to Friday, 8am to 5pm, or book a call back on service.nsw.gov.au/business.
[1] Asia-Pacific small business survey 2022-23, CPA Australia
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