What Australian Salon Owners Can (and Can't) Claim at Tax Time

Here's how to choose the right  EFTPOS system for your salon. Whether you’re a hairdresser, nail technician, or beauty therapist — if you're in the business of beauty, then you know that running a successful salon requires more than just talented staff. It's important to have the right business tools and equipment to keep your productivity high, your overheads low, and your customer service consistently great. At the top of the list should be a system for efficiently collecting customer payments. With the declining use of cash, and growing demand for convenient and secure electronic transaction options, it’s important to select a tool that can process every customer's payment quickly. You’ll also need a system that will grow with you — one that can handle an increasing transaction volume, and surface valuable insights about the financial health of your beauty business as your client base grows. With a wide variety of payment options on the market, where do you start? Here are 10 questions to ask yourself when searching for the right EFTPOS terminal for your salon. What equipment is used in a salon? Every beauty salon needs an EFTPOS terminal to process customer transactions. With the declining use of cash, and growing demand for convenient and secure electronic transaction options, it’s important to select a tool that can process every customer's payment quickly. You’ll also need a system that will grow with you — one that can handle an increasing transaction volume, and surface valuable insights about the financial health of your beauty business as your client base grows. With a wide variety of payment options on the market, where do you start? Here are 10 questions to ask yourself when searching for the right EFTPOS terminal for your salon. Is it portable? Portable EFTPOS terminals allow you to provide your clients with a stellar customer service experience, wherever they are. Whether you’re treating a client to an at-home massage, or preparing a bride on location for her wedding day, a portable EFTPOS machine is the perfect solution for processing payments. Being cordless, you can accept payments anywhere — as long as you have internet access. Zeller Terminal connects via WiFi, hotspot, and SIM Card, ensuring you’re never in the awkward situation of not being able to process a payment. A portable EFTPOS machine can also help improve the in-salon customer experience. Client in a hurry? No problem. A portable machine means you can collect payment from the chair during a blow-dry, so they can be on their way as soon as the job is done. Does it integrate with your other salon software? To be successful in the beauty industry, good communication is vital — and that extends to your salon software. Future-proof your salon operations by ensuring that your software tools talk to each other, and will be able to continue doing so even as your business expands and grows. Choose a payment system that makes it easy to add and utilise time-saving functionality, such as inventory software, booking systems, and accounting. You’ll streamline your business operations, save time on admin, and free yourself up to spend more time growing your business. Can you process payments over the phone? Even though you’re running a face-to-face service, having the ability to take payments over the phone can be good for business — especially during gift-giving holiday periods, when gift vouchers for beauty services are in demand. Having the ability to accept payment over the phone also enables you to take a deposit to confirm appointments, which helps to minimise no-shows. Your payment system should allow you to securely process a payment remotely, so that your clients feel confident doing business with you. Check out our guide on Processing MOTO Payments with Zeller Terminal . Does it look good in your salon? As a stylist, you need a solution that not only works the way you need it to, but looks the part as well. You’ve no doubt spent time and money making your salon look clean and inviting — why ruin it with a clunky EFTPOS terminal? Modern EFTPOS terminals feature elegant designs, which means that your payment hardware can enhance your salon’s aesthetics, rather than detract from it. Zeller Terminal has been designed to complement your front counter, which means you don’t have to sacrifice aesthetics for functionality. How quickly can you access your takings? Collecting payments is one thing, but accessing your money is another entirely. There is a lot of variability in settlement times between payment systems, with some online payment systems taking between three to five working days to transfer money into your account so that it can be spent paying suppliers, staff, and yourself. Zeller customers have access to a free transaction account, into which funds accepted via Zeller Terminal are settled nightly. That means you get access to your funds the very next day, and can spend your takings using Zeller Mastercard. There is also the option to have funds settled to any third party bank account — the choice is yours. Does it offer your customers a choice of payment options? Your payment system should have the capacity to process a variety of payment options. Look for a system that can accept the basics — eftpos and major credit cards, such as Visa and Mastercard — as well as contactless payment methods, such as Apple Pay and Google Pay. Keep in mind that many payment providers will charge an additional fee for accepting AMEX, and other card types. An extra couple of cents may not sound like much in isolation, but when you process thousands of transactions every year, it adds up. Will it help to grow your business? A good payment system should do more than just collect your money. It should also provide you with accurate financial insights, so that you can manage your income and cash flow. Look for a system that provides an online dashboard with real-time analytics, so you can see how your business is tracking, and make informed decisions based on performance. Zeller Dashboard provides insight into the financial health of your business at a glance, allowing you to mark smarter decisions, and grow your salon. Are the transaction fees transparent? Keeping transaction fees to a minimum is important, no matter what type of business you run. Transaction fees can eat into profits, if you choose not to implement a surcharge. However, it can be difficult to compare costs if you don’t know what to look out for. Some providers may require you to purchase your hardware upfront, while others may include a terminal as part of a recurring subscription to use the service. Whichever payments provider you choose, you can expect to pay transaction fees. These fees are usually calculated as a percentage of the transaction value, however some providers will charge additional fees. Look for a provider that is up-front with their costs, so you don’t end up being charged hidden fees or paying a recurring fee you can’t get out of. At Zeller, we keep our fees simple and transparent. Once you’ve purchased your Zeller Terminal outright, we offer one low, flat transaction rate for all in-person payments to keep your fees low and simple.There are no minimum transaction volumes, hidden fees or lock-in contracts. You’ll also receive a free business transaction account, and a Mastercard to spend your takings. Is it secure? Protecting your clients’ payment information is common sense. Fraudulent transactions not only cost time and money, but they can also cause long term damage to your reputation. Do your homework, and make sure that the company you choose not only has a system for monitoring and identifying fraudulent activity, but also a robust process for dealing with transaction disputes. The Zeller Terminal is secure out of the box, and every payment is encrypted from end to end. In addition, your account data is protected behind multiple layers of encryption and authentication, and funds are held securely until you need them. Learn more about how Zeller is committed to protecting your data. Is there support for when you need it? While you hope that nothing goes wrong with your payments system, it helps to know that someone is available to help if you ever need it. Check that your provider offers support to solve any technical issues that may arise. Zeller’s Customer Success team offers phone and email support seven days a week, from 9am to 1am (AEST). There’s also a library of resources to help you find quick solutions to your questions. Before you decide on a payment processing system for your beauty salon, be sure to do your homework. Consider the features of each system and how they will benefit your business. It’s a good idea to talk to other salon owners, and see which systems they’re using and why they like (or don’t like) them. Ask questions and get quotes from different providers so that you can make an informed decision about which system is best for your business. With so many options available, there’s no reason to settle for anything less than the perfect payment processing system for your salon. By sharing your details with us, we may contact you from time to time. We promise we won’t bug you — and you can unsubscribe from communications at any time.

Meet the duo determined to beat the salon stereotype and reclaim balance. Bendigo-based hair stylists Paris and Matilda are first-time entrepreneurs with big growth goals. Hairdressing is a tough gig; long hours and weekend work is the norm, as Matilda points out. It’s a stereotype the duo are keen to kick with the opening of their first salon. With years of experience under their belts, Paris and Matilda know what it takes to keep a team of stylists engaged. The business partners have climbed the ranks — from sweeping cutting room floors, to now calling the shots — and know exactly how they’ll grow the business with strategies they’ve learned along the way. We spoke to Paris and Matilda about what sparked their leap of faith, and how they're managing to achieve work/life balance while growing a new business. Why did you decide to open your own salon? Paris The pandemic hit everyone differently. We were both bored at home and unable to work during lockdown, so we thought — why not take the leap? Neither of us had ever owned a business before. Some people thought it was a bit risky doing it while going through a pandemic, but it was something we were both so determined to do. We wanted to have the ability to grow a business for ourselves, that was ours, and to create a better work/life balance. The hairdressing industry certainly isn’t easy and it can be quite tough to find a salon that really cares about allowing their employees to have that balance. It’s been really rewarding being able to do everything exactly how we want to do it, and being in control of our workload. Matilda For as long as I can remember, I've always wanted to push myself and try to give myself the best opportunities to be as successful as I can be — and doing so knowing that I have provided my clients the best possible service. I was starting to lose the love of hairdressing due to working in environments that did not value their staff, and how to keep them happy. So I wanted to create a space that was fun and creative to work in whilst also giving me financial independence and better work/life balance. What makes Hair & Halo different? Matilda One of our main motivations is to break down the stereotype of hairdressing being a hardworking environment with not much reward. The technical expertise required in this creative industry should be acknowledged as it is in other sectors, and we want to create an environment that does this. The pandemic made a lot of people realise they want more balance in their life, and that is something we want at Hair & Halo. We are passionate about our salon being a place where other hairdressers can pursue their talents and careers, whilst enjoying balance in both their work and life. Owning our own salon also means we can provide and deliver the best training, products and work space for our staff — which ultimately leads to the best experience and results for our clients. Having both worked at other salons, we appreciate what works and what makes staff happy. We’ve seen firsthand how this strategy helps produce the best results. How has COVID changed the hair industry? Paris People were forced to stop and slow down, and now they are used to this which means they are more flexible. I've found that a lot of clients would prefer to have their hair appointment throughout the day, or in the evening. A lot of people can work from home now, which means our clients can bring their laptop in and work from the salon — as opposed to having to get their hair appointments done on a Saturday or their day off, outside of working hours. Because of our clients’ flexibility, we have been able to reduce our weekend work. To compensate for this, our trading hours consist of more late night hours throughout the week, which we prefer, and we think our clients do too. Matilda People definitely have more flexibility now, which means we have adapted our service delivery to accommodate these changes. There also seems to be a bit more focus on self care and people taking time out to indulge in things for themselves and we love being part of that experience. Tell us about choosing a payment services provider. Matilda When it came to finding a payment provider we wanted to research it as much as we could, so we knew we were making the right choice for our business. There are so many terminals out there but lots of them have hidden costs to them. We knew we didn't want to rent and that we wanted to purchase one, and that's what we loved about Zeller. We also thought the fees were incredibly reasonable compared to other companies out there. Not only is it super efficient, it also provides us with real time accurate information. It's also super sleek and modern-looking, which is exactly the style of our salon. Where do you see the business in 5 years’ time? Matilda I have great aspirations to expand the business both in Bendigo and in other parts of Victoria. I’m passionate about creating an experience for clients through using the best techniques and latest trends, and continuing to develop my skills through industry training. I understand the hard work required to make the salon the success I know it will be and to this, I see myself having a team of highly skilled and hard working staff who share the same passion and love for hair that I do. Paris We have very high hopes for our business. Our goals are quite big! We want to become one of the leading salons here in Bendigo, and keep growing to the point where we are able to open up another salon in a different location. Although we have only been open for a short amount of time, we are already planning on expanding our team here at Hair & Halo. We would love to have an array of employees including freelancers, apprentices and qualified hairdressers. We believe that the only way we can grow as a business is to have an amazing team behind us who love doing hair as much as we do. In 5 years’ time, we hope to have a successful business here in Bendigo that is one of the leading salons. We do have room in our current space to grow, but not as big as we would like. Our plan would be to find a bigger space that allows us to have a bigger team of amazing hairdressers. We would hope that within this timeline we would be considering, if not already have, a second location where we can grow even further. By sharing your details with us, we may contact you from time to time. We promise we won’t bug you — and you can unsubscribe from communications at any time.

Discover the critical components to include in your salon business plan. A business plan is far more than a simple document. Think of it as your pathway to business success. A salon business plan will help you outline and achieve your goals — whether that’s to start a salon from scratch, grow your business to new heights, or even expand into more specialised, complimentary markets. It’s a resource you can rely on every time you need to make a strategic business decision. Writing a business plan doesn’t have to be difficult. You don’t need an accounting degree or an MBA to create a useful plan for your salon. Instead, this guide will show you how to write one from scratch without the complexity. Why you need a business plan for your salon There are lots of good reasons why you should write a business plan for your hair or nail salon. No matter what type of business you run, it pays to have a solid understanding of your industry, your market, and how your business fits into the competitive landscape. Preparing a business plan forces you to meticulously and objectively assess the strengths and weaknesses of your business, and can help keep you on the right path to making smarter business decisions. A business plan also provides your business with direction and structure to grow. As an entrepreneur, chances are you won’t be short of new ideas and opportunities. Sometimes the challenge lies in knowing which ones you should pursue. Some ideas are distractions. Others are money making growth opportunities. Having an up-to-date business plan , which includes your overarching business goals, will make it easier to identify which ideas are worth exploring. Starting a salon business plan The key is to remember that your business plan is a living document. It will grow and evolve with your business. For that reason, It pays to start broad — documenting the bigger picture behind your business — before diving into the specific strategies which may change over time. Here are some things to consider. What is the purpose of your business plan? Understanding what you hope to achieve with your business plan will help guide the content within it. Are you looking to create a blueprint for expanding your salon business in another location? Perhaps your aim is to attract investors, or win over a business partner? Whatever the objective, understanding the purpose of the document will help guide the contents. Is your business idea financially feasible? It is important to be realistic about the likelihood of business success. This requires research. If you’ve run a business before, then you’ve likely already crunched the numbers. If you’re new to business, it pays to ask for professional advice. The Hair and Beauty Australian Industry Association, a not-for-profit body, can be a great source of operational, industrial and compliance advice for salon owners. Once you’ve established that your business idea has legs, you’re almost ready to start writing your business plan. Before putting pen to paper, it’s important to do two things Set some tangible goals for your business Whether your goal is to see a certain number of clients every month, or to upsell a certain volume of products, it pays to identify these goals early, and incorporate these into your business plan. This will give you the metrics you need to track progress over time. Recognise the threats and opportunities for success Every business comes with a level of risk but being aware of these can help to minimise their impact on your business, or better still, turn threats into opportunities. Acknowledging potential challenges early means you have a better change of circumnavigating them or reducing their impact on your business as they arise. Essential components of your business plan There are plenty of templates that you can use to prepare your business plan. Here are some key elements that you should consider when preparing a business plan for the opening of your salon. Executive summary Though the executive summary sits at the beginning of your business plan, it is generally the last thing to be written as it summarises the key components of your business plan. Remember, your business plan may come in handy for attracting business partners, securing investment or getting business finance approval. Use the executive summary as an opportunity to provide a compelling snapshot of your business — make it engaging and highlight how you plan to make it a success. Business Overview This section should provide key information about your business. What kind of salon are you running — and is it full-service, or niche? What makes it different from other salons in the area? Use this section to highlight your point of difference, and how your experience and expertise will contribute to the business’s success. You should also use this section of the business plan to describe where you plan to run your salon, the size and scale of the premises, and any local amenities (such as parking or access to public transport) that would make your salon appealing to your target audience. This information will come in handy when it comes time to consider marketing your business, as you’ll need to know how much foot traffic your salon will be exposed to. Finally, in this section you should also introduce your start-up plan and budget. This should identify any start-up capital you require to secure your premises and set up the salon, and how you plan to fund this set up. Products and Services Whether you’re opening a full-service day spa, or delivering a specialised niche service like nail art, this section of your business plan should outline the products and services you plan to offer your customers. Consider things like customer demand for certain items, and whether your competitors provide a similar service. What are the costs associated with delivering these services? Are your prices reasonable, and within customer expectations? If retail sales are part of your business strategy, consider how you will drive demand and sales to support your business goals. Will there be an incentive-based scheme to encourage staff to sell more products? Will product sales form part of staff KPIs? How will you train staff to sell without impacting the salon experience? Customer and Marketing Strategy Your business plan should also outline your marketing strategy, which hinges on your customer. Outline your customer persona and what makes them seek out your salon products and services. Are they looking for a high-end, luxury experience, or are they after affordable, no-frills solutions? Perhaps they’re after express services that can be fit into a lunch break? Once you know your target market and what will attract them to your salon, you’re in a strong position to market your business. Your plan should identify the best way to attract customers to the salon. Here are some strategies that you might consider: a referral program which rewards customers or other businesses who recommend your salon paid advertising in local press street signage promotional discounts for new customers content marketing via social media and other channels set up your Google My Business listing Make sure to outline a realistic budget for how much you are prepared to spend to attract new clients to your salon. Operations and Personnel How many stylists will it take to achieve your business vision? Will they be staff members, or contractors? Apprentices or seniors? Your personnel plan should outline your staffing requirements (including things like salaries) and trigger points for increasing your staffing numbers as your business grows. Your business plan should also outline what equipment you’ll need to run your salon efficiently and profitably. This could include hairstyling chairs and equipment like scissors, as well as business and financial tools , such as booking software and an EFTPOS machine . Financial Plan Preparing a financial plan can be one of the more daunting elements of writing a business plan, but it is also one of the most critical. If your goal is to create a profitable, sustainable long-term business, then having a clear plan for how you will generate income is essential. As part of your financial plan, you should identify and explain any assumptions about your financials, including any expectations for estimated sales — considering both the cost of goods and expected revenue growth over time. You should also outline your plan for breaking even, managing cash flow and projected profit and loss for the short-to-medium term of your salon. Getting started with your business plan When it comes to opening your own beauty salon, it pays to prepare for success with careful and considered planning. Seek advice from experts and peers in the beauty industry on what to include, and how to structure your business to safeguard your profitability and encourage growth over time. Most importantly, don’t worry if the first draft isn’t perfect. A business plan is a critical first step in consolidating your ideas, and laying out a blueprint for growing your salon. Yet business plans are designed to be living, breathing documents that should evolve over time as your business grows, new consumer trends emerge, and industry shifts occur. Committing a business plan to paper is just the first step. By sharing your details with us, we may contact you from time to time. We promise we won’t bug you — and you can unsubscribe from communications at any time.