Meet Sarah: the entrepreneur helping SMEs to scale quickly with government funding

• Business name: That Nail Place / TNB Skills Training 

• Industry: Hair and beauty 

• Founded in: 2001

• Top business product: Business loan

• Key learning: "The question when taking on debt is - how will this money generate a return quickly?"

If you’re thinking of starting a business, having Sarah Abel in your corner would definitely set you on the right track. 

And this has happened to hundreds of people in the hair and beauty industry, thanks to Sarah’s business TNB Skills Training.  

Here, Sarah shares her business story and the lessons she’s learned from securing government funding. 

What was your motivation for starting your own business? 

I’ve always been driven by the idea of creating something that gives people more opportunities. I left school at 16 and I was living with my grandparents, as my dad died when I was young and my mum was diagnosed with multiple sclerosis, so she needed full-time care. 

My grandparents had previously run their own hotels, so I was around entrepreneurial people. One of my first jobs was in a hair salon and I really enjoyed it, but at the time I didn’t know how to make money in the industry. 

I then worked in the corporate world as a sales manager for Avon. But I realised I needed to start my own business as I wanted to control my future. It was quite a big turning point – I wanted a better life for my family, and it was time to make it a reality. 

How did your business journey begin? 

It was the early 2000s, and I decided to buy a nail salon for £20,000. But, I didn’t have the money and I was in some debt, so I needed to get a business loan. At that time, I wasn’t aware about government funding for small businesses, so I secured a traditional loan and my first business, That Nail Place, was born. 

What were the main challenges your business faced in the early years? 

Cash flow was my biggest challenge and that was really tough to tackle, but it taught me resilience. That was also the reason I started looking into what business support was available, but it was a minefield. I had to think smart and find ways to evolve the business. 

For example, my husband was working full-time but I knew if he joined the business, we could accelerate quicker. I noticed a trend for body piecing and realised it could become an additional revenue stream. Luckily, my husband agreed, and soon we were offering body piercing alongside nails. This was a big step for the business and I was working with someone I trusted completely. It’s important to work with people that have the same values, as if your team doesn’t align this can cause problems. 

How did you scale the business? 

I bought a tanning shop and a few more salons, but the business started to scale when I opened my first hair and beauty training academy in 2008. I managed to get a contract from a local college to deliver apprenticeship training to other salons, and this is when TNB Skills Training really grew as I started to utilise government funding.  

How did funding from the government help your business? 

Early on in the training business, I discovered the council was offering an interest-free loan for local businesses. In my pitch I explained how the money would support TNB Skills Training, which in turn would upskill many people in the area.

If you’re applying for government funding, it’s important to think about the bigger picture and how the money will positively impact many lives. So, with my business, I could go back to the council and explain how I’ve trained X amount of people to work in local jobs. 

To date, I’ve secured more than £6m in funding for TNB Skills Training and other businesses, which has funded hundreds of apprentices and trainees. 

Alongside funding, did anything else help your business to grow? 

It’s really important that you are educated about business, and having a mentor really opened my eyes to what is possible. I think everyone in business should have a mentor as you’ll accelerate a lot faster with their support. Trying to run a business on your own is very difficult. 

In terms of other financial products, we have a business credit card from Capital on Tap. We use it for our marketing spend and this generates rewards like air miles. I then put this back into the business by rewarding my team with the points, so they go on holiday and treat themselves. 

Is there anything you wish you’d known sooner? 

I wish I had understood the difference between good debt and bad debt in my 20s. 

Bad debt is when you take on a loan without any clear return on your investment, so you end up spending whatever you’ve borrowed and then this can lead to more debt. Whereas good debt can generate more income than the loan cost. For example, we received £100,000 from the local council and rather than just viewing it as a loan, I saw it as an opportunity to double our revenue. The key question when taking on debt is: how will this money generate a return quickly?

Many business owners fear debt because they don’t believe in their ability to turn it into profit. However, if you don’t believe in your own success, it probably won’t happen. I’ve had sleepless nights wondering how I’d make things work, but I’ve always been determined to make my business a success.

What’s next for your businesses? 

My vision for the future is to see TNB Skills Training expand beyond government-funded training and offer more private courses. I’m always looking for ways to make sure the business remains financially stable, so this feels like the natural next step. I would also like to continue to mentor small businesses to help them grow to six and seven figures. 

What would you say to someone who is about to start a business? 

Never be afraid to ask for help, especially in terms of financial advice and how to get  funding. There’s so much help out there – you just need to find it. 

This case study is for informational purposes only and is not intended as financial or professional advice. The results described are specific to the individual's personal experience, so please consult with a qualified professional if you need financial advice.