More recession beating tips and ideas for small businesses, this time from the UK’s Daily Telegraph Business section (though they’re equally applicable for salon owners in any country). We’ve included a brief extract below, click here to read the full article - “Nine Top Tips from Recession Survivors”
Mobile phone firm O2 has quizzed some of its customer base and found that long-established firms agree on the importance of nine key areas:
1 - Get the basics right…
2 - Cut costs…
3 - Careful cash flow management…
4 - Spend on marketing
Despite recommending cost-cutting across most areas of the business, a need to remain competitive and visible is important. Marketing was one area seen as crucial to generating business during a period of downturn. Take advantage of the recession by negotiating better deals in areas such as advertising where cost of space has dropped or allocate spend to setting up or improving a website which is another cost-effective way of marketing your company. In an increasingly competitive arena, customers need to hear about your product so maintaining marketing spend is a must.
5 - Determination…
6 - Hold onto existing customers
As spending power diminishes existing customers were highlighted as the most common source of revenue growth during the last recession. Rather than putting all efforts behind winning new business, which is more cost and time heavy, identifying new business opportunities among existing customers led to successful organic growth and new revenue.
7 - Diversify your product and customer base
Looking at ways to adapt or broaden the appeal of a product may be a way of maintaining and growing your business. This may be through opportunities arising as a direct result of the economic climate or it could be re-looking at your business and adapting it for a different market. Firms should be alert and on the lookout for new ways to market their product in order to grow their customer base.
8 - Delivering excellent customer service
With existing customers recognised as the lifeblood for small businesses during a period of downturn, delivering excellent customer service was identified as essential by 9 out of 10 of the small businesses questioned. Being flexible and reliable to meet their requirements were cited as common methods to help keep current customers loyal as they tighten belts.
9 - Credit check customers…
You can find much more information, and detailed examples, of how to apply these strategies to your hair salon or beauty salon’s marketing in our new product - Crack the Credit Crunch, Ride Out the Recession.
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