By now, there’s a good chance you’ve spent hours – days, even – going over your business plans and accounts, determined to save money where you can in a bid to keep your salon afloat. But here’s the thing, crisis-proofing your business isn’t just about a profits-and-loss spreadsheet. And it’s something you should be prepared for way before a crisis happens.
When the pandemic is over, and we’re all back in our salons doing what we love, it would be a good idea to be prepared, and ensure we’re equipped to survive if any crisis presents itself again, in any form.
Too hands-on
If a business relies on one person very heavily, the likelihood of everything coming tumbling down is high. Illness, accidents or personal issues relating to that one person can derail your whole business. And if that person is you, what’s your plan if the unimaginable happens and you’re not able keep your salon running as per usual?
“You must prepare a step-by-step guide for each of your non-negotiable parts of your business and assign a trusted person to take on those role if the need arises,” business analyst, Jennifer Lai. “That person could be a staff member, a personal partner, business friend, or even your accountant.”
Specialise
It’s tempting to be everything to everyone. After all, isn’t that the best way to get the highest number of customers into your salon? Not so. “It’s hard to stand out from the competition when your salon is trying to be a jack of all trades,” says Jennifer. “Plus, offering too many treatments or services can make it difficult to boost efficiency and reduce costs. It also reduces the quality with which you can execute the treatments when you can’t dedicate the right amount of time to really developing your delivery of them.” Really focusing on one area, such as skin rejuvenation, or hair removal, can help to build your reputation as the must-visit salon for that particular treatment.
Sort your profits
If your margins are low, and you find yourself discounting your treatments more often that you’d like, alarm bells should be ringing. “The first step is to monitor the margins,” says Jennifer. “So many business owners do’t track margins regularly; tracking them monthly is more likely to highlight any previously unseen weaknesses, which can be corrected quickly.”
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