Thoughts On Recession

Since March 2020, I’ve made the observation that in the face of the pandemic and the ensuing shut down, salon owners exercised a completely different set of “muscles” with regard to their businesses. Whether it was the shock, the suddenness, the unknown nature and potential duration of the threat, it seemed that salon owners went to a whole new level of fiscal discipline as well as creativity about how to keep their businesses afloat. This expressed itself in unprecedented levels of financial planning, budgeting and resourcefulness around preserving and protecting cash. It also fostered new levels of creativity in areas such as scheduling, defining and protecting the guest experience, building of team/culture, and even new services such as curbside and/or delivery of retail to guests. These activities gave us something useful and productive to do as uncertainty swirled around us. They also got results!

Unfortunately, as the imminent threat passed and the perception of long term damage faded in the minds of many business owners, old habits gradually came back to the forefront. This took the energy out of some of the wildly creative and innovative ideas that had been implemented in times of crisis. Flush with PPP money, newfound respect and appreciation for our services from guests, and a surplus of guests seeking new homes, our industry got “so busy being busy” that creativity and innovation gave way to the status quo.

Unless we have a plan to make it otherwise, talk of even the possibility of recession can become a huge distraction to our teams and our guests. Whether a recession actually comes to pass, here are some places to focus your attention and energy in uncertain times:

  1. How much does it take to keep this place open?
  2. How much do we need in an emergency fund?
  3. What do I need to make to support my family?
  4. What do my employees need to make to support their families?
  5. How do we continue to foster creativity and innovation without losing sight of our core values and beliefs?
  6. How do I focus on what’s in front of me (sales plan, goals for growth and profit) rather than on the news?
  7. How do we provide so much value in the experience that guests never question what they pay us?
  8. How do we distinguish between being “too expensive” for people and “not worth the money” and protect ourselves from the latter?
  9. How do we influence the conversation in the salon (back room and on the floor) to keep this a safe haven from the outside world and events?
  10. How do we protect our team and our culture regardless of outside conditions.\

If you would like to work with a Summit coach to create a plan for market fluctuations and unforeseen circumstances, CLICK HERE to request a complimentary 30-minute session.