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BUSINESS RESOLUTION SOLUTIONS

When economic times get tough, businesses can really feel the pinch, and salons are no exception. In fact, according to a recent Los Angeles Times article, in an effort to save money, many consumers are reducing the frequency of their salon visits, and in some cases even cutting and coloring their hair at home! Along with the countless hair disasters that can result from home styling, this state of affairs means trouble for many salon owners. But that doesn´t mean that your 2009 has to be a wash. If you´re willing to make — and stick to — the right New Year´s resolutions, your business can thrive, even in a rocky financial climate. According to spa and salon expert Andrew Finkelstein, owner of the Beauty Resource, it might not be easy, but next year “can be an excellent year if you choose to make it that way!”

Finkelstein believes it´s crucial that you enlist the assistance of a professional to help you look at your business objectively. That could mean an accountant, manager, advisor — even members of a small business association or other relevant group you belong to. In turbulent times like these, he says, “People are in a state of quasi-panic. You can´t see clearly - you can´t see problems or opportunity.” Accept that you can´t do it alone, and you´ve taken an important step on the road to a successful business.

Do you know what your numbers mean? If you want to keep you head above water, you better! “A big mistake people make is to try to improve or increase their business without understanding their numbers,” Finkelstein says. “Sales down? Great, but what does that mean? Bring in someone who can crunch those numbers.” This doesn´t mean that you have to become an accountant, but it does mean you have to know enough to ask the right questions and be comfortable with the basics. Once again, don´t be afraid to ask for help from a professional so that you can understand your numbers and what they mean for your business.

Panic is never good for business. Rather than simply reacting to a problem, always think things through before making a decision. “When you put one thing in place,” Finkelstein suggests, “ask yourself, ‘How does this affect other aspects of my business?´”

Are your product lines not selling? Are your clients not returning? Are your marketing blitzes falling flat? Maybe you don´t know your customer as well as you think you do. Finkelstein says you must take the time to step back and clearly identify and understand your clients. Otherwise, you can´t possibly know what they really want. And a great way to learn anything is to ask questions. Client surveys and questionnaires are important ways to get the information you need. Additionally, educating yourself through industry-specific training courses and business and marketing classes can help you learn how to identify client buying patterns, how to interpret data, and how to effectively market your services to your customers.

Sure, in this industry, education is important. However, Finkelstein says that doesn´t mean you need to “dive in like a lemming” and send stylists to every single show — that can get expensive. First, ask yourself if the skills and knowledge are going to be helpful and relevant to your business. If not, ditch the expense. Even little things can add up. For example, you probably have subscriptions to many commercial (as opposed to industry) magazines for your clients to read. Are you paying for them? You shouldn´t be, because most companies will provide consumer magazine subscriptions to businesses for free.

“Especially with how shaky things are, if you´re employing stylists who depend on your marketing expertise, don´t you owe it to them to learn?” asks Finkelstein. “You have to have the mindset that you´ll move out of your comfort zone [if necessary]. This requires skill.” Again, industry-specific classes, community college business courses, and consultation with experts can help you lean the skills you need to thrive.

It´s important to remember that everything you do communicates something about yourse lf and your business. So what does a messy, out-of-date, non-functioning, overly complicated, and/or downright ugly Web site tell a prospective client? At the very least, it will make them think twice about your professionalism and aesthetic sensibility. “I think it´s almost essential to have one, but you´re better off having one non-interactive, simple page than a mess,” Finkelstein says. “Unless you´re committed to having an up-to-date, client-friendly Web site, you´re better off taking it down.”

Finkelstein strongly recommends that you book a day or two before the end of the year to strategize. That means setting aside time with no clients, something many owners are loath to do. “A lot of people are resistant to this,” he concedes. “They think that doing another head of hair is more important than taking time off to plan and evaluate — but it´s just not true.” Make sure that your advisor can attend the planning session, and of course have your numbers ready!

• FIRST, identify your vision. For example, in the next few years, what will your business look like? How big do you want it to get? How many customers do you ultimately want to serve? How much do you want to sell?
• SECOND, create a mission statement — that means determining what you stand for and why you´re in business, from a customer´s point of view.
• NEXT, delineate your objectives in concrete, measurable goals. This includes things such as your sales goals, profits, and client retention.
• FOURTH, describe some strategies you must employ in order to be successful. For this category, think in broad terms — what would you like to become known for? What markets do you need to target?
• FINALLY, get specific and outline what work needs to be done to achieve your goals. Who will do what, and when?

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