Statistics tell us that 70% of all businesses that don’t survive, failed to seek help to improve their knowledge and skills.
It’s, unfortunately, common for salon owners to sit back for too long when business drops off; burying their head in the sand, and just waiting to see what will happen… hoping for the best.
This is what I call the “Emu Technique of Business Management”, and not what I’d consider being a great long-term survival strategy!
When your business is in a slump, whether it be a new competitor opening up in your area, losing a key staff member or through a general economic downturn, it’s vital to take the bull by the horns, become more proactive, and take responsibility for making the changes needed to turn your salon into the thriving business you want it to become.
Because many salon owners are presently working so hard IN their businesses, they often don’t make the time to evaluate how they can identify problem areas and take strategic actions to improve their situation (also referred to as working ON their business).
This is a MISTAKE!
The fact is, most problems never go away by themselves. Left alone they tend to multiply like rabbits in the breeding season.
Sitting back and waiting to see what’s going to happen could definitely have dire consequences for your financial success.
Instead, problems will respond to positive action based on an understanding of what’s going wrong.
You can begin this process by stepping into the shoes of your clients and assessing every aspect of your business through their eyes.
What You Need To Do
Make time over the next week to review your business thoroughly. Begin by evaluating your business from an outsider’s viewpoint (your clients).
Look for the things that you’re positive you’re doing right, and ask yourself how you can build on them and make them even better.
Examine your recent business history to find the things that have helped you to grow your salon. Was it introducing a new service or product line, hiring a certain type of staff member, running a great profitable promotion or something else?
Whatever you find that has helped you to grow, look at ways you can build on this, and make it work even harder for you.
Stop re-inventing the wheel and instead focus on what you do well. Become the best you can be in these things and build your business around them. You cannot be master of all things and it’s a mistake to try to be.
Also look for the things that you’re not doing so well.
Decide whether you can be great at these things with additional training or resources and if the answer is yes, then develop a plan of action to get you there.
If being great is not something you can achieve, consider whether or not you should continue to do it. Poorly delivered services are often the cause of lost clients, so it’s clearly not worth the risk to continue to deliver substandard services, just so you can have them on your menu.
Either way, don’t continue to build your business around things you will never be able to do to a very high standard. You will never be able to retain clients with this strategy, so let it go.
Don’t be a Business Emu and pretend things will improve without intervention. Understanding what your strengths and weaknesses are is the first step in turning your business around.
By taking some time out, and doing this kind of evaluation of your business, you’re much more likely to make great decisions that will lead to increased profitably in your salon.
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