Economic downturns have always been a worrisome subject for salon owners: How do you keep sales up when clients cut back on spending?
Follow these steps to recession-proof your beauty salon:
1. Focus on your balance sheet.
Pay close attention to how you’re managing your cash flow. While this needs to be done all the time, it’s even more critical during a recession because there’s just that much less cash floating around.
2. Diversify, diversify, diversify.
Launch a new product or service. Focused on hair and makeup? Try setting up a brow bar in your salon. Promoting only commonplace beauty products in your retail store? Try showcasing exclusive offerings like the TrueBrow™ Collection. Use the time to diversify, so you don’t have all your eggs in one basket.
3. Look at your credit status.
Find ways to increase your line of credit in the event you need to use it. Negotiating with a bank from a position of power and good financial resources now is a lot easier to do than trying to negotiate when you’re already knee-deep in a recession.
4. Review your salon’s discretionary spending items.
Although beauty salons tend not to overspend, those who survive a recession always seem to manage to cut back on discretionary items such as travel, staff outings, etc. Take whatever steps are necessary to reduce debt – the less you have to pay out in an economic downturn, the less painful it will be.
5. Review your clients.
Start reviewing how a recession impacts your beauty salon clients. Search out for alternatives. Somebody is always making money, even in a recession. Find out where those deep pockets are and if you have services you can provide them.
6. Improve salon customer service.
Now is definitely the time to take customer appreciation to a new level. Get in touch and stay in touch with your active clients. Take nothing for granted. Make sure your customer service is exceptional and your attitude reflects how much you value their business. Ask your clients for referrals, they will be happy to recommend your salon if you have a high level of customer service. Revisit dormant clients and see what you can do to bring them back to your salon. Winning back past clients is easier and less expensive than finding than finding new business.
7. Don’t stop marketing.
Regardless of economic downturns, you can’t afford to stop salon marketing. Marketing doesn’t have to cost a lot: attend online networking events, spruce up your website, start a monthly email newsletter – be creative.
Remember your long-term picture. All business is cyclical; it is of little value to your beauty salon to leave a recession unable to capitalize on the return of better times.
Do you need expert guidance during these tough times?
Book your FREE strategy session with me to quickly boost your salon business today