Business disruption can be extremely costly for your salon or barbershop. This can be anything from your booking system going down, to floods, fire, theft or power cuts. The Chartered Management Institute estimates that weather disruption alone can cost the average UK business £52,000, with staff illness, failing IT systems and telecoms disruption the next most common problems.
A business continuity plan is vital, explains Mark Lowery-Wiltshire, Affinities Sales Manager at Coversure (Huntingdon), as is insurance for peace of mind.
This blog post covers:
- Creating a business continuity plan
- Creating a business continuity plan – step one
- Creating a business continuity plan – step two
- Creating a business continuity plan – step three
- What is business interruption insurance?
- Get 20% off your salon or barbershop insurance bill
- You’re covered with Coversure
The NHF works in partnership with Coversure Huntingdon, one of the UK’s leading independent insurance brokers, to offer specialist cover for hair/beauty and barbershops salons. (See more below.)
Coversure Insurance Services (Huntingdon) recommends creating a business continuity plan as an essential part of your overall business plan. You can do this by following the three basic steps below.
Your salon or barbershop business can be broken down into the five ‘Ps’:
• People – key staff, expertise and training.
• Processes – IT, systems and communications.
• Premises – buildings and equipment.
• Providers – suppliers and contractors.
• Profile – reputation and statutory and legal considerations.
Decide which of these are critical for successfully running your business and where your business is most vulnerable.
You can then consider how you would respond and continue to operate if something goes wrong in any of your key areas. Devise a plan to get back to ‘business as usual’ as soon as possible.
Your business continuity plan should provide a clear framework to enable your business to continue operating, even in challenging circumstances.
Make sure it’s written in plain language and is easy to understand and follow.
Store your plan where it can be easily found and keep a back-up copy off-site.
Download GOV.UK’s Business Continuity Management Toolkit to help guide you step by step through the process of creating a business continuity plan.
Our comprehensive ‘guide to the financial aspects of running a small business’ is available free to NHF Members.
You may already have property insurance but be aware that this will cover only physical damage to buildings, stock and equipment.
However, property insurance alone won’t cover you for the potentially crippling impact of your salon or barbershop business being temporarily out of action.
Business interruption insurance provides vital additional cover for costs, for example:
• Lost profit due to business interruption.
• Additional costs such as temporary relocation; hiring replacement equipment; or even ‘business as usual’ ads.
• Indirect disruption, for example, if your clients can’t get to your salon or barbershop because the area you’re in is closed due to a fire or security incident.
It’s always advisable to take out business Interruption insurance on top of your basic property insurance.
If you are insured through Coversure’s SalonSure, business interruption is included as standard within your insurance policy. Coversure Insurance Services (Huntingdon) is NHF’s recommended insurance provider, offering professional and friendly advice and competitive premiums with a 20% discount for all NHF Members.
Download the free NHF guide to find all the information you need about opening your own salon or barbershop.
• Create a business continuity plan.
• Make sure you understand the cover you’ve got.
• Get peace-of-mind cover from Coversure Huntingdon – plus 20% off for NHF Members.
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