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Business Pages > Expert Advice > Recession Busting Advice For Hair Salons

Recession Busting Advice For Hair Salons

Posted by Kate
Dated: January 20, 2009 11:35 AM

Open any newspaper or switch on any news bulletin and you are can't help but be sucked in to all the tales of financial doom and gloom, reduncancies and companies going out of business.

And while recession is not a new phemonenon, many believe that the current economic slump feels very different to previous downturns.

We spoke to some of hairdressing's most respected business brains to find out what is different this time round and what advice they have for salon owners and managers, based upon their experiences during the last recession.

Hold regular meetings
"I was general manager of Harrods Hair & Beauty in the 90s and I am using the same principles now that I adopted then - making sure I was totally on top of the performance of the team; analysing their percentage return rates, occupancy rates and other factors to assess how they were nurturing and developing their clientele.

"This time we've gone back to core basics even more. I've been holding staff meetings frequently to keep the team informed of developments in the economy and the performance of the company."
Hellen Ward, Richard Ward Hair & Metrospa, London

Keep your team - and your salon - happy
"I remember the challenges faced during the last recession and feel a lot more knowledgeable about all aspects of business this time. What I remember most was being surprised at how much we were able to grow the business through the difficult time.

"For any salon owner facing an economic downturn for the first time, it is vital the team feels positive and encourages customer service as the first line of defence.

"Keep weekly and monthly figures updated and take action quickly, do not sit on anything, especially debts. Never mess with HM Revenue & Customs; they will close you down without a care, so always prioritise its payments.

"Making the salon environment an oasis of positivity away from the doom and gloom creates the salon as a place where people need to return to for a boost to lighten the mood."
Jon MacLeod Paterson SA, Edinburgh

Concentrate on what you do best
"This recession is very different to the last one as there is no movement from the banks so doing business is hard.

"The best thing that hairdressers can do is stick to what they are good at and not worry about anything else. Keep focussed and don't be distracted by what is happening in the news."
Alan Hemmings. Alan d Hairdressing, London

Deliver the highest possible standards
"We started our business during the last recession and didn't find it a problem. This time it seems to have made a far deeper impact on clients. There is a different mind-set, but that could be due to all the media hype.

"We are noticing that clients are extending their appointment times from six to eight weeks and I know some clients that have missed out an appointment altogether.

"The most important thing to remember is that clients have a choice - don't give them any reason to leave your salon unhappy, make sure the service and standards of hairdressing you provide is exceptional and they will be back."
Malcolm MacNeil, Ishoka, Aberdeen

Be a strong leader
"The best advice for surviving an economic downturn is to be a clear leader - in hard times staff will lose confidence if they see you panicking. Don't do the whole 'pull your socks up or you will be fired' routine.

"This is not a great long-term strategy for motivating your team. Logic will prevail - if you do a good job at the right price with a well-motivated team, you will out perform your competition and be in a well placed position to enjoy the upturn when it comes. And it will!"
Sean Hanna, seanhanna group, Surrey

Invest in your team
"In the 90s the recession was more UK-centric and not a global situation as it is this time around. You didn't have international banks collapsing and spreading fear to each and every business that is reliant on bank support. Therefore the country was able to work its way out on its own as opposed to having to wait until super powers such as the US or the Far East began to recover as well.

"Nowadays people say 'when the US sneezes the UK catches a cold' showing that we can be quite reactive in a global downturn especially when currency is in such a bad way, as well as affecting import/export to such a great degree.

"Hairdressers need to look at their overheads. Look at cost-cutting exercises; this is actually a good exercise to do on a yearly basis anyway as it's important to be in control of your finances. We are all in business to make money so never lose sight of that. Rather than cutting back on training, invest in your team's continual progression through education, making it the best around so you don't give your clients a reason to go elsewhere."
Paul Simbler, hob salons, London and Hertfordshire