BABTAC’s Ten Top Tips for Beauty Business Success

As the beauty industry gears up for financial changes following last week’s Autumn Budget, BABTAC (the British Association of Beauty Therapy & Cosmetology – www.babtac.com) has brought together leading beauty business experts from its BABTAC Beauty Collective to share practical advice to help salon owners, therapists, and beauty entrepreneurs safeguard their profitability, and plan with confidence.

Below, BABTAC CEO and Chair, Lesley Blair MBE, as well as BABTAC Beauty Collective members Ria-Jayne, CEO at The Beauty Accountant and Andy Millward, Functional Facialist and Naturopathic Nutritionist, reveal their top strategies to strengthen business resilience ahead of any fiscal changes.

1. Don’t bury your head in the sand when it comes to financials

“It can be really tempting to bury your head in the sand when it comes to working out how increased overheads will affect your business. However, the best thing you can do is to get familiar with, and stay on top of, your numbers to avoid any unforeseen surprises. Whether it’s yourself that manages finances, or you have the help of a dedicated expert, ringfence some time to understand the full picture with the addition of National Insurance and wage increases, so you can be armed with the facts.” Lesley Blair MBE

2. Strategise and crunch the numbers

“Once you’ve worked out how much additional revenue would be required to cover any increases to employee wages and outgoings, this is where you want to plan ahead and strategise. Ask yourself questions like ‘How much would the average client bill need to be with our existing client base?’ and ‘How many more clients would we need to acquire to cover any difference?’ to understand what steps you may need to take.” Lesley Blair MBE

3. Explore new streams of income for your business

“As well as exploring options like increasing your price list, you might wish to enhance your existing offering by introducing new treatments to your customers. If training to offer a new service isn’t possible right now, explore how you can offer packages that speak to the modern-day client – whether it’s express services for busy clients, multi-service packages or treatments for special occasions.” Lesley Blair MBE

4. Enhance your customer loyalty

“The current financial climate naturally means that customers are more deal-conscious than ever before, which can mean they aren’t as loyal as they may have once been. As well as thinking about their experience in the salon, consider how you can increase their loyalty outside too. Refer-a-friend schemes, loyalty programmes, bespoke offers and setting up marketing tools like regular e-newsletters will help to make you front of mind and drive them back into your salon, sooner.” Lesley Blair MBE

5. Strengthen cash flow and prioritise real-time financial visibility

“Robust cash flow management is the foundation of a sustainable beauty business, especially during periods of financial uncertainty. Focus on forward planning now rather than waiting for the new financial year, and make sure your accounting records are accurate and accessible in real time. Investing in a reliable bookkeeping system can help you make informed, agile decisions quickly.”

“Tax planning may depend on a ‘sweet spot’ regarding employee numbers-potentially around 4-5 employees, but it’s wise to wait for further clarification on thresholds once the final budget details are published.” Andy Millward

6. Plan for worst-case scenarios to reduce stress later

“Modelling potential outcomes ahead of time ensures nothing comes as a surprise. Consider how changes like a 2-3% increase in VAT, National Insurance, or the Minimum Living Wage might impact profitability. Understanding the financial implications early allows you to make conscious decisions - whether that means absorbing costs or adjusting prices, rather than reacting under pressure.” Andy Millward

7. Identify cost-saving opportunities and stop profit drain

“Budget season is the perfect time to review every business outgoing. Ask yourself: Is this essential to operations? Does it add clear value? What would be the impact if we removed it? Anything that doesn’t contribute meaningfully to your business is simply eroding profit unnecessarily.” Andy Millward

8. Diversify income to reduce reliance on labour

“Beauty therapy is labour-intensive and limited by appointment hours, so explore less time-dependent revenue streams. Retail products, memberships with added value, training courses, online tutorials, digital resources, or group mentorship sessions can provide financial stability without overloading your therapist capacity.” Andy Millward

9. Make use of available reliefs, allowances, and financial support

“A knowledgeable accountant can be invaluable. Many beauty businesses are eligible for reliefs such as Employment Allowance, Capital Allowances, or Apprenticeship Support/Grants. Making sure none of these are overlooked can have a meaningful impact on your end-of-year financial resilience.” Andy Millward

10. Invest wisely in your business and yourself

“Strategic investment can strengthen both your service offering and tax efficiency. Purchasing new machinery or devices can expand your services into higher-profit categories. These investments are often tax-deductible, helping reduce VAT or corporation tax. Investing in personal education and upskilling also boosts expertise, allowing practitioners to command higher prices for skills rather than purely service time.” Ria Jayne