The "R" word.

Dare I say it? The dreaded "R" word? 

Recession.

Eek! I said it!

Although it seems hard to believe, trustworthy economists are projecting that we will be in a serious recession soon. And as news media outlets are posting articles about huge layoffs in big tech companies, it seems as though it's closer than we originally thought.

Salons and hairstylists are already feeling the little pangs of recession pain. Their clients are starting to have a wandering eye, shopping around for a "better deal". 

And that is super scary, right? I realized today that some of you that have been working hard in the industry for the last decade weren't even working yet at the bottom of the market in the last recession. So you may have no clue what to do here! Don't panic, I got you boo. 

Did you know, I worked through the last recession? And my business not only survived, but it THRIVED. There are lots of reasons why my business was booming while others was shutting their doors... so let's scratch the surface here and give you some actionable items you can start doing now to prepare your business. 

1. Focus on cost-cutting measures. Look for ways to reduce expenses without sacrificing the quality of your services. This could include negotiating better deals with suppliers (think, towel services), cutting back on unnecessary purchases (the "extra" stuff like decor and whatnot), or finding ways to be more energy-efficient (because it's gotten crazy expensive!).

2. Adapt to the changing market. During a recession, consumer spending tends to decrease. But they aren't just looking for cheaper. They're looking for better value. Consider customizing your menu to include new services that are in demand, but maybe an "express" version of the more lengthy and luxury version. 

3. Utilize social media (it's FREE) to promote your business. Social media platforms are a great way to reach out to new customers and keep existing ones engaged. Create a strong online presence by regularly posting updates about your business and your new express services or specials. 

4. Diversify your revenue streams. Don't rely on just one source of income. Consider something I did that was a smash hit: Offer a "VIP" club. This is a paid club, and members get wholesale price on retail items. Clients feel like they're getting a great value, and you're not losing out on the revenue stream from retail. This also strengthens the customer relationship, which can outlast tough times. 

5. Network with other businesses. Building relationships with other businesses in your community can help you create mutually beneficial partnerships. You can also take part in local trade shows and events to promote your business and build relationships with other business owners. You want those other businesses to know that you have great value to offer. 

6. Be creative and think outside the box. These are unprecedented times, and it's important to be open to new ideas, methods and business models. Try experimenting with new ways of doing things, and don't be afraid to take calculated risks. During the pandemic, I made curated take-home color kits for my clients to help them stretch out their hair appointments. Something like this could easily apply to a recession. Again, you're strengthening that relationship between you and your client. 

By following these tips, you can help your hairstyling business survive, and even thrive, during a big ol' fat recession. Remember to stay positive and stay focused on providing your clients with the best possible service you can give them! 

And if you need more help figuring out how to dial in your customer service skills, get on my waitlist for my course that teaches exactly this! It's called The Confident Stylist Academy. And recession or not, it's a great organized method of dialing in your skills, and confidently succeeding in your business. 

Click Here to get on the waitlist and learn more!

You can do the hard things friend. And when you need help, I'll be here to guide you. 

Your Hair Mentor,

Crystal