Running a small business in the professional beauty industry is not just about following the latest beauty trends. It takes a great deal of planning and anticipation of what the future may hold to remain in business for the long haul. Jane Mason reveals her tips for success.
From long hours and early mornings to endless chains of emails, you might feel so far removed from what it is that you’re trying to achieve and sometimes you need to just knuckle down and get through the boring admin stuff.
But through it all, you’ve built a business that you should be proud of – making your sacrifice of time, sweat, and money that is worth it at the end of the day.
This is why you wouldn’t want to risk the future of your business over something that can be easily protected against.
Yet sadly, many Australian small businesses put their hard work in jeopardy by not getting enough protection to cover them if the worst were to happen.
Only 43% of Aussie small businesses think they are fully covered from insurable business risks, according to a recent Vero small business survey.
More than one third (34%) said they have no plan if something bad were to happen, with some saying they haven’t thought about it and that they’ll cross that bridge when they come to it.
Knowing what business risks you face and how to safeguard your business against them is key to futureproofing your business.
From a fire ripping through your store to a treatment gone wrong, professional beauty businesses carry a variety of risk. And just like beauty trends change, so could your risk profile.
Here are three factors to check to ensure that your business is healthy enough to cover any claims that may arise:
Your workforce has changed
Small businesses are barely ever stagnant, which often influences the size of their workforce. After coming out of lockdowns into a worker shortage, salon businesses may have a drastically different team than when they last renewed their insurance.
If your workforce has shrunk since the time you last reviewed your policy, you could adjust your insurance to better suit its current size. Conversely, if your business has grown and your workforce has increased, you may need to consider getting more cover.
Whatever the case, it’s important to ensure your insurance covers your current workforce.
The risk to customers and suppliers is different
If you interact with your clients in a physical environment, there are many risks you may come up against.
Understaffing and untrained workers could lead to situations where safety protocols aren’t properly followed, resulting in a higher chance of an accident.
For instance, if a customer or supplier trips at your workplace and suffers an injury or you damage a client’s property while doing an in-home treatment, a claim could be made against you.
While you could always provide extra training, you may also need to ensure you have adequate Public Liability cover, which is designed to provide protection from third-party injury or property damage.
The risk to your business itself has changed
Your customers are important, but so is stock, your equipment, salon contents and your commercial premises. From fires to theft, the risk to your assets could have changed since you reviewed your policy.
Business Insurance is a package designed to provide cover for these assets from risks such as fire, storm, theft, or accidental damage. It can even cover your portable equipment, glass and for loss of revenue due to a business interruption in specified circumstances.
If you’ve made any internal changes to your business premises or something has increased the risk externally, you might need to consider updating your Business Insurance policy.
Review your policy today
On a spectrum between beautifying Beyonce to lodging your taxes, sorting out your business insurance is definitely on the boring end. But as you know, being a small business owner sometimes requires you to do these tedious tasks so you can protect your business in the long run.
Insurance is there to protect you from the current risks you face. By not giving your business a health check every now and then, these problems could become a lot worse if a claim were made against you. What’s more, doing a review of your insurance could help you save on your premium.
Visit bizcover.com.au to compare quotes – no dramas!
While there are many perks to being your own boss, overseeing everything can get quite dramatic. Luckily with BizCover, business insurance doesn’t have to be.
This article is sponsored by BizCover.
Jane has two decades of experience in business insurance and leads a diverse range of product portfolios from Public Liability to Professional Indemnity. Her commercial insight and knowledge of the Australian business insurance landscape has enabled her to become a leading expert in her field.
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769
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