Ask the experts

Our beauty experts answer your questions about every aspect of running a salon or spa business

Should I contribute to a pension if I’m self-employed?

If you’re self-employed and not currently contributing to a pension, you might be wondering if the state pension will be enough. The current full state pension for 2023/2024 is £203.83 per week, which is rising to £221.17 a week for 2024/2025 However, your state pension entitlement will normally be based on your own national insurance contributions.

To receive any state pension at all, you’ll need to have made or been credited with at least 10 years of qualifying contributions on your national insurance record.

To receive the full state pension, it requires 35 years of qualifying contributions or credits. If you have more than 10 but less than 35 years of qualifying contributions then you will receive a proportionate amount, with each qualifying year providing 1/35th of the full amount.

For example:

• 35 years gives 35/35 x £203.85 = £203.85 a week

• 30 years gives 30/35 x £203.85 = £174.73 a week

• 10 years gives 10/35 x £203.85 = £58.24 a week

You can check your National Insurance record online by visiting gov.uk/checknational-insurance-record

It is important to note that relying solely on the state pension may not provide the desired standard of living in retirement. Taking proactive steps to save, invest and plan for retirement will help ensure a more financially secure and fulfilling future.

Self-employed pensions offer a solution to this problem and can also offer several benefits:

1. Tax relief on contributions – when you contribute to a self-employed pension, you can claim tax relief on your contributions. This means that the Government adds money to your pension pot based on your tax rate. For example, if you are a basic rate taxpayer, for every £80 you contribute, the Government adds £20, making a total contribution of £100.

2. Tax-free growth – the money you contribute to your self-employed pension grows tax-free. This means that any investment gains or interest earned within your pension pot are not subject to income tax or capital gains tax.

3. Tax-free lump sum – when you reach the age of 55 (rising to 57 from 2028), you can typically take up to 25% of your pension pot as a tax-free lump sum. The remaining amount can be used to provide a regular income in retirement, which will be subject to income tax.

4. Lower taxable income – by contributing to a self-employed pension, you can reduce your taxable income. This can potentially lower your overall tax liability and help you avoid higher tax brackets.

 It’s important to note that there are annual limits on pension contributions, so it’s advisable to consult with a financial adviser or tax professional to help make the most of the tax benefits available to you.

Tina Renshaw is a financial adviser and the owner of Renshaw Financial Planning but was previously an award-winning nail technician and nail educator.

How do I add piercing to my salon treatment menu?

Ear and nose piercing offer a great additional revenue stream with strong profit potential and a low initial investment in equipment. Offering a piercing service can differentiate your business from competitors and increase footfall because piercing is not something that can be bought online.

Each piercing takes around 20 minutes, with retail pricing from £40 to over £100, depending on the type of metal used to pierce. The time spent with clients while piercing provides a valuable opportunity to get to know them, allowing you to upsell other products and services.

The trend for multiple piercings has continued to grow among all age groups, and if you aren’t offering piercing, clients will be spending money on this service elsewhere.

When researching implementing piercing services, you should consider the following:

  •Licence – contact your local council to find out what you need to perform an ear and/or nose piercing service. For salons already offering aesthetic treatments, the service may already be included with the licence for those treatments.

• Insurance – enquire with your insurance provider to ensure the service is covered.

• Piercing system – research the company and piercing system you want to use. Systems with touch-free loading and sterile jewellery will help you offer safe and hygienic piercing.

• Piercing area – piercing does not take up much space in the salon. You will need to have a wipe-clean surface for your equipment, access to running water, a height-adjustable chair or couch, and a pedal bin. Treatment rooms can be used, or you could create a studio feel to make piercing social media-ready.

• Training – in-person training is the best way to become confident. For example, Studex’s System 75 Ear and Medisept Nose Piercing courses are run by a team of experienced regional trainers and are endorsed by Habia to ensure the highest level of training.

• Knowledge – take time to ensure all therapists and front-facing staff are available to attend training. The more knowledge your staff have, the more confident they’ll be selling and promoting the service.

• Marketing – shout about your new service. Why not host a piercing launch event to invite both current and new clients to experience a piercing and some branded goodies?

Working with a reputable manufacturer with a recognised training programme is essential, together with a brand that provides a comprehensive support package, from bespoke marketing to customer service advice.

Kathryn Darwin is commercial business manager at piercing system brand Studex. With over 20 years’ experience, she works with the Chartered Institute of Environmental Health and Primary Authorities to promote best practice.

How can I achieve a better work/life balance this year?

Running your own salon can consume an incredible amount of time and energy. Retaining a personal life outside of your business may seem like an impossible goal at times, but with the right strategies in place, you can successfully achieve a manageable work/life balance, most of the time. My top tips for achieving this are:

Draw a line between work and home: Get into the habit of separating the two, when you are at work, you are at work, and when you are at home, you are at home. Don’t be in one place and be worrying or feeling guilty about not being in the other. If you bring work home or have a home-based business, exercise self-discipline and stop working when you close the door.

Always stop for meals: On average, most salon owners work a minimum of 64 hours per week. Taking care of yourself and establishing healthy eating habits is vital to give you the energy required. Set regular mealtimes and thenn keep these set times sacrosanct.

Make a habit of switching off: Statistics suggest that 30% of us check our phones before 7am. You need to build in uninterrupted thinking time to your day, away from technology and the expectation of an immediate response. Our brains need respite to continue to produce innovative ideas.

Assume responsibility: If you have a problem or a difficulty to overcome, you are responsible for fixing it. Likewise, if you are unhappy, it is your responsibility to get to the root of your unhappiness and make some much-needed changes. If you don’t like your current situation, then change it. Stop making excuses and be responsible.

Outsource wherever you can: At times, and for certain tasks, relinquishing control is the right decision to make. Think about what you could delegate and to whom. For example, daily paperwork and general bookkeeping could be outsourced to take care of your admin.

Saying no makes you grow: Learn the power of saying no, because sometimes we forget how important it is to say no when we’re busy. It is not possible to be available to everybody around you all the time. If you are respectful of your time limitations, then staff and clients will be too. Healthy people have healthy boundaries, and part of being healthy is occasionally saying no to requests, situations or staff that you can’t or don’t want to accommodate.

Make time for a holiday: It is difficult to leave your salon for long periods of time, particularly in the early days. Take long weekends instead – every so often add a Friday or a Monday to your weekend, giving you a break to look forward to and a chance to recharge your batteries.

Practise thinking positively: Display a more positive emotional and mental attitude towards yourself, other people and situations. Refuse to participate in negative inner dialogues because it’s a waste of your precious time and energy. Try to associate with people who bring something of value into your life and avoid those who sap your enthusiasm.

Liz McKeon is an author, business coach, mentor, trainer and founder of the International Salon Business School. She is also the author of industry book 30 Days to Beauty Business Success.