When I opened my first salon in 2001, finding people who wanted to join the hair and beauty industry was never a challenge.
Back then, whenever I advertised a position, I’d receive a flood of applications. But times really have changed. Salon owners are now facing a completely different reality.
The biggest struggle today isn’t just finding young people who are passionate about the industry; it’s finding those who are willing to commit to the training required to become exceptional hairstylists or beauty therapists.
Two-year apprenticeships don’t appeal to many young people, who instead might opt for a full-time college course while working part-time in a supermarket, as the pay is better.
But what these trainees don’t realise is once they graduate, they struggle to find a salon willing to take them on. And they’re also thinking short-term in terms of earnings, not realising that with the right skills, an apprentice can 10x their earnings in just a few years.
The other issue? Salons are battling rising costs and the challenge of simply staying afloat. Many have stopped taking on apprentices or drastically reduced how many they hire.
I say that’s wrong. Here’s why apprenticeships remain one of the most powerful ways to build a skilled team in the hair and beauty industry.
Apprenticeships: an investment, not a cost
Like many businesses today, salons are struggling with rising overheads and tight profit margins. Most can’t afford to hire a new stylist unless they bring a fully-booked client list. Every team member must generate at least 3.5 times their wages in revenue to stay viable.
There are ways to make hiring apprentices financially viable for salon owners. For those with a payroll bill of less than £3million, the government covers 95-100% of training costs.
Plus, there are grants and incentives available at different times, helping to reduce the financial burden of hiring apprentices. You can also apply for loans for advanced learners, using the funding to grow in-house educators rather than relying on external ones.
It’s not all about the money, though. Some still see apprentices as a cost rather than an investment. But there are many ways to make apprentices more valuable in the salon. They could also be helping with marketing, social media, or other revenue-generating activities.
If the government reintroduced a wage incentive — similar to the Kickstart scheme used during COVID — it could significantly encourage salons to invest in young talent.
Likewise, if training providers focused on upskilling existing salon educators, rather than relying on external assessors, salons would be far more willing to take on apprentices.
This model isn’t just theoretical; I’ve used it myself. When I built my first six- and seven-figure businesses using government funding, I made sure my team was trained in-house, leveraging funding streams that already existed. It worked then, and it works now.
How to make hybrid salons work
Money concerns are already causing some salon owners to think twice. Many fully qualified stylists and therapists are choosing self-employment over traditional salon jobs, seeking more flexibility over when and where they work.
There’s a lot of scaremongering at the moment about employed salons disappearing entirely. From what I’ve seen, there’s little evidence of this happening on a large scale.
That said, the industry is shifting, and I believe that a hybrid model — where salons have both employed staff and self-employed stylists renting chairs — could be the key to long-term profitability.
Many salons already operate this way, including my own. But to make it work, salon owners need educating on financial planning, profit and loss sheets, and pricing strategies. For example, if a salon takes a percentage of a self-employed stylist’s earnings, they must ensure the arrangement is financially viable for both parties.
Another mistake I’ve seen is salons failing to properly price their chair rent based on their overheads. If done correctly, chair rental can be a highly profitable revenue stream, complementing an employed team.
For salon owners allowing self-employed professionals to work in their space, I highly recommend telling them to register as a limited company (Ltd). This offers tax benefits, reduced liability and greater financial security for both owner and stylist.
Unfortunately, many salon owners rely on advice from accountants who prioritise staying under the VAT threshold rather than looking at the bigger picture. While this may work in the short term, it can hold a business back from long-term scalability and growth.
Beyond the appointment book
Throughout my career, I’ve learned the salons that survive and thrive are the ones that adapt and think strategically. It’s not just about filling the appointment book, it’s about finding new ways to generate revenue.
Salons have more opportunities than ever to diversify their income streams. Online sales, digital training courses, and even “how-to” tutorials for clients are all booming industries.
With the right funding, salons can train their team to market and sell more effectively, enabling them to grow their businesses and stay profitable — fully government-funded.
If you’re a salon owner looking for guidance on funding and apprenticeships, now is the time to explore your options. There is money available – you just need to know where to look.

Sarah Abel is an award-winning, seven-figure serial entrepreneur, best-selling author and speaker with an extraordinary against-the-odds story. Sarah, a business strategist specialising in training, and the CEO of TNB Skills Training, a training academy that also secures government funding for other salons.