Download this free four-step recession survival guide to get you through downturns with confidence.
Any good entrepreneur wants a business that can weather financial storms. And beauty entrepreneurs are no different.
But many of us only know how to grow a business when the economy is thriving. When economic downturns hit, businesses can be unprepared and many of them fail.
The good news is, it doesn’t have to be this way. With the help of some simple strategies, you can prepare for and recover from a recession, emerging with a business that’s stronger than ever.
One of our partners, Artemis is on a mission to help beauty business owners thrive. So, they’ve created a four-step recession survival guide to get you through downturns with confidence.
Here is a quick summary of the 4 steps included in the eBook:
Step 1: Remember Recessions Can Present Opportunity
We can instinctively react to any mention of “recession” with fear.
While fear can help protect our businesses, it can also be unfounded, causing us to suffer when we don’t need to. So, before you start worrying, remember that many businesses can thrive in a recession.
Step 2: Recession-Proof Your Business
Once you’re out of a fear-based mindset, take steps to prepare your business for a downturn.
First, check that your services are good value for money compared to your competitors’ pricing and value.
Then, do a “spring clean” of your spending. Take a look at recent invoices and think about what isn’t essential.
You may also need to look at your employees. Check that each person provides enough value to your clients to justify their salary. While this can be tough, if you’re going to survive, you need to think of yourself as a business, not a family.
Step 3: Know the Impact on Your Business
Before you assume that a recession has negatively impacted your business, look at the data first.
Check your revenue, costs, and profits monthly and compare these to the same time last year. Don’t fixate on a quiet month or two – look for trends over time.
If your revenue is declining month on month, there’s no need to panic!
Step 4: Recover from a Recession
If you are going through a tough patch, don’t get caught up in blaming external factors. Always look at what you can change about your business to make it stronger.
Firstly, you may need to cut costs so they fall in line with your current revenue. If you decide to cut, especially when it comes to personnel, then cut once and deeply. This will keep your team’s morale as high as possible.
When your costs are manageable, begin thinking about how you can grow. Check the numbers, identify the services people love, and brainstorm ways you can build on these strengths. For example, you could promote your best service more, or sell more to your top customers.
We’ve explained how beauty businesses can survive a downturn – now it’s your turn. Download the Recession Survival Guide by Artemis to start preparing your business today.
Download the free eBook, here!
