Strategies founder Neil Ducoff advises salon owners to think about all the clients who depend on their services for their sense of well being.

“The relentless barrage of bad economic news can rattle even the most steadfast of leaders,” says Neil Ducoff, founder and CEO of Strategies in Centerbrook, Conn. But it’s in hard times like this that owners need to lead well. How you lead will affect the morale of your employees, the atmosphere of your salon, and ultimately, the success of your business.

As professionals, we like to remind ourselves to leave our personal problems at home. At work we are supposed to focus on the client and maintain a professional attitude. But what happens when your work is personal? When you own the salon or rent your own space, any change in revenue to the “business” means a change in revenue for you. That’s personal. As the owner, it’s your job to find ways to keep profits stable even when the economy feels like it’s in a free fall. It’s essential for you to learn tools that empower you to make your business run efficiently with little waste.

“The first and least expensive thing for an owner to do is stay focused,” says Ducoff. When an owner is distracted by looking at the bills and the checkbook, it’s easy to get nervous and concerned, which permeates into the business. “Feelings of concern, anxiousness, and worry easily translate into how you speak and carry yourself,” says Ducoff.

Ducoff gives techs two tools to use during times of economic uncertainty. Both will be familiar to techs, but with familiarity often comes complacency, so to improve, we go back to the basics. The first tool is our psyche. The second is our systems.

Managing our psyche takes self control and discipline. “At the salons I visit,” says Ducoff, “I often hear the concern from owners. They tell me that clients are extending appointments, fewer clients prebook, cash is coming in slower so owners are buying on credit, which makes the bills pile up. In many ways, there is nothing worse than financial stress.”

It’s easy, and even natural, to worry about business concerns, but worrying accomplishes nothing. “Don’t listen to naysayers, whiners, and complainers,” says Millie Haynam, owner of Natural Beauty Salon & Spa in Twinsburg, Ohio. “They are toxic to your psyche. You become that which you think about; think about going out of business and you will. Believe you can hang on, take positive actions every week toward that end, and you will.”

Ducoff agrees. “Think about your business and all that’s right with it. Think about all the clients who depend on your services and products for their sense of well being. Think about those employees who in good times and bad continue to believe in you,” says Ducoff. Yes, the economy is in a slump, but you have a business to grow. So, what will you do?

In his book, No Compromise Leadership, Neil Ducoff talks about leaders who are resolute in their commitment to consistency, accountability, and integrity. He reminds readers they need to make a “100% commitment to thinking, behaving, and being accountable to their goals and their business systems.” What does that mean? It means that if your business system is, for example, to send new clients a thank-you note for choosing your salon, you don’t leave work that day until you’ve written and addressed the note. No compromises. Review your business systems, and renew your commitment to them.[PAGEBREAK]

“It begins with information flow,” says Ducoff. Salon owners need to keep their teams informed, motivated, and unified. That may mean mid-day huddles or morning pep talks with a briefing. Whenever you choose to do it, make it daily, concise, and brief. The point is to remind the team of the salon goals and hold them accountable to a measurable benchmark. Business systems, such as how you greet customers, upsell, prebook, and follow-up are intended to be used to direct the salon’s growth and to gauge success. Goals empower people. Systems help you create goals and show you where you need to improve. When you educate your team on your salon’s business systems, you give them common, structured, and consistent goals they can work together to achieve.

“Prebooking is the biggest animal you can tame in terms of systems,” says Ducoff. In smaller salons with no receptionist, nail techs can book before they polish; in larger salons the receptionist can prebook before she receives payment. Ducoff describes one salon’s system where nail techs write down on a card when a client should return. The client takes the card to the front desk where she is asked, “Would you like your next appointment in the morning or afternoon?” The client is never actually asked, “Do you want to book your next appointment?” By implementing that one small business system, that salon improved from a 25%-30% prebook rate to a 60% prebook rate. Seeing a relatively full book when you look two, three, and four weeks out absolutely improves the morale of the team, and it builds confidence that business is secure.

What are your business systems? Some systems require owners to make a certain number of cold calls or to pass out a certain number of cards each week in an effort to build a larger clientele. Others suggest owners create a referral program through their current clients. Systems dictate how you greet clients when they walk in the door, how you close the deal when someone calls the salon to inquire about pricing, and how to upsell services or recommend retail products. Systems give you a plan for following up with current clients, communicating special or seasonal services and products, and rewarding regular customers with discounts to pass on to friends. When you get serious about working the system, you see results, and morale increases right along with the bottom line.

If you’ve been in the business long enough, you may have found there are times when your attitude is focused and your systems are running efficiently, but you still have a difficult time making a profit. In times like this, advises Haynam, “renegotiate every contract you have and evaluate your expenses with a fine-tooth comb.” Haynam says she recently changed the structure of her business to the booth rental model in response to Ohio’s tax rates. She also renegotiated her lease, explaining to her landlord the need for a reduction of the terms.

This year, Haynam has chosen to alter one of her business systems: raising prices. She has decided to forego a price increase, and she is letting her clients know she is going without a raise. Haynam has found creative ways to retain current clients by discounting services for retirees who can come in during the day while ensuring her business stays afloat by charging a “premium fee” for evening and weekend appointments.

News of a bad economy (especially delivered at the high-pitch frenzy from newscasters) has a way of touching personal insecurity deep inside us. Refocus. Choose to stay positive. Review and reinforce your systems and make them work for you. This will relieve your stress while the economy is in a slump, and it’ll get you prepared for when the economy is back on the upswing.[PAGEBREAK]

KEEPING THE FAITH

We asked these nail techs to tell us how they keep focused and positive in a sagging economy:

1. “I focus on my clients. I choose to focus on what I have, on what is good.”

— Cheryl McEvoy, Cheryl’s Place, Oklahoma City, Okla.

2. “I greet every single person as if it was the first time I have seen her. I smile as much as possible (even though it is tough sometimes) and hope that it catches on, which it usually does.”

— Darlene Donovan, Nail Creations @Bamboo Natural Beauty Salon & Boutique, Londonderry, N.H.

3. “We all have an inner ‘negative voice’ that likes to rear its ugly head — especially in tough times. But I believe that being positive is a conscious decision that needs to be made every day, just like choosing which shirt and pants to wear. A positive attitude can change everything; it builds spirit and helps maintain your passion for success. Try a little self-talking with ‘happy thoughts,’ and if that doesn’t work for you, try an affirmation — but make it a good one!”

— Tracy Clement, Young Nails mentor and distributor, East Greenwich, R.I.

4. “Clients are becoming more educated and searching out top quality, highly trained nail professionals. They also want kindness and understanding, things that keep us connected and grounded in these daunting economic times. If top-quality techs can provide both, they have a winning combination.”

— Sarah Hallford, Hallford Nail Studio, Rancho Cordova, Calif.

5. “I made a commitment several months ago to stop watching the news. I get enough information through Internet surfing and general interaction with news-aholics. When clients complain about the economy I always steer the conversation to something positive. It is too easy to share in the pity party. I like to remember you can visit pity city but you can’t move in!”

— Millie Haynam, Natural Beauty Salon & Spa, Twinsburg, Ohio

6. “Advancing my education always piques the interest of my clients. They love to hear everything that I am learning about. It also gets them talking and sharing the news with their friends and it never fails to bring in new business for me.”

— Darcy Olin, Tips to Toes Nail Salon, Richland, N.Y. [PAGEBREAK]

7.  “My clients have told me they are going to cut back, but they’ve assured me it’s not with their nails. To show my appreciation, I’ve added ‘perks’ — like extra nail art or massage — as time allows. I also stay flexible. If some clients drift away, I look for services that will attract others. Finally, I do not let television news frighten me. Many sources are more conservative about the horrors of our financial prospects.”

 — Wendy Causey, Vivify Hair and Nails Studio, Torrance, Calif.

8. “When my clients come in, I use voice inflection to lift the mood right away. We exchange recipes and talk about things that woman do and what makes them feel good. The whole salon ends up chiming in on our conversations. It makes women feel good when they share ideas with others. The economy is bad for all of us, but that doesn’t mean it will be a downer in every conversation. Not in my salon.”

— Tammy Warner, Nails Unlimited, Buffalo, N.Y.

9. “I express to every client who sits in front of me that I totally appreciate them coming in for services. Also, I know that being confident and having faith that things will turn around is key to this business.”

— G Elizondo, D’Hair to Be Different, Las Vegas