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Is it fair to assume that we all know what an umbrella company is and why people use them? Well – in a word; no. Although umbrella companies are not a new phenomenon and have been around for many years; it is only since the 2007 budget and the subsequent legislation that they have really come to the fore. 

Gone are the days of the composite company; basically a limited company that you would be placed in as a shareholder with perhaps another 20 people. You would then claim minimum wage, and the rest of your take home pay would be in the form of dividends. These ceased in 2003 when the government introduced a tax-free allowance of £10k for small businesses, and single person limited companies were born.

Really, these single person companies were to all intents and purposes, the same as composite ones except that a single person owned all of the shares. These single person companies were very popular during this period. In fact so much so that new legislation was introduced in the 2007 budget in order to shut them down. These new laws saw the end of wage payments as dividends and the start of more complicated payment methods – the most widely used of which was the umbrella company.

With an umbrella company you will still pay PAYE tax as well as National Insurance, however, you are able to claim all legitimate business expenses. The main difference between this new form of company and the old composite companies and single person companies is that the umbrella company does not pay wages or salaries in the form of dividends, to do so would be illegal under the new legislation.

Finally – we should bear in that there are many other advantages to using umbrella companies that go beyond the mere financial; for example, they negate the need to be involved with running a spreadsheet, VAT returns, payroll matters, company accounts, taxation and so on. This in itself is a good enough reason for the majority of companies or individuals to use them.

Every business has to deal with mistakes and misunderstandings every now and then. This same story applies when working in a salon as well. However, what matters here is how you deal with these customer complaints. Otherwise, as you know it the customer will simply take his or her business elsewhere. Here are a few tips on effectively handling complaints at your salon.

You should assign one or more employee to the role of customer support. These employees will be in charge of handling disputes, mistakes and misunderstandings if and when they occur.

A good attitude is very important when dealing with complaints. No one likes having to listen to them, but there are several very good reasons why you should, not the least of which is that you will learn something about what your customers’ needs are. You can improve your business environment by listening to someone tell you what the problems are, and that means a healthier bottom line.

Take time to listen to the customer. After all, the customer is complaining because she or he has a problem. For instance, the customer may not be happy with the hair coloring. Customers want to be listened to; they want to be sympathized with and understood. If you give the customer your fullest attention and rectify the problem with a good attitude, the customer is bound to become one of the most loyal customers at your salon.  

Your angry customer needs to rant, so let her. Allow her to get her feelings out, completely, and do not cut her off. Ignore any negative words that may fall out, but remain calm and attentive. When she is finished, reflect back to her what you think the problem is and ask questions, even though you may already know what the problem is. If she sees that you really want to improve the situation and you have really listened to her, then she will calm down, too. In that space, a mutually agreeable solution to the problem may be found.

It does not matter who is ultimately at fault for the event, you must apologize to the customer. It is never the intent of any business owner to allow customers to have bad experiences. So the next step is to find that happy medium where your customer feels the problem is resolved. Perhaps an offer of free or discounted treatment on her next appointment is on order. Whatever you do, let her know that you value her as a customer and you accept responsibility for the problem.

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Libby Dedman is the founder of www.SalonPreneurGlobal.com – Join the FREE Salon Marketing Community there and share, learn and implement steps to making your salon.