Thriving Stylist Podcast: Episode #363 - What to Do If Your Business Is Shrinking or to Prevent a Stall Out
Release Date: November 25, 2024
Host: Britt Seva
Introduction
In Episode #363 of the Thriving Stylist Podcast, host Britt Seva addresses a pressing issue within the beauty industry: the alarming trend of shrinking businesses and stagnating growth among hairstylists and salon owners. Drawing from a wealth of listener feedback and personal insights, Britt delves deep into the factors contributing to this downturn and offers actionable strategies to not only prevent business stall-outs but also to thrive amid challenges.
The Great Divide in the Beauty Industry
Britt introduces the concept of the "Great Divide," a growing chasm between the "haves" and the "have nots" in the beauty sector. This divide is characterized by:
- Client Pushback: Increasing dissatisfaction among clients, leading to reduced patronage.
- Internal Strife: Stylists and salon owners turning against each other, fostering a toxic industry environment.
"We're very much in it right now. The industry is split in a way that I've never seen in my lifetime."
[00:54]
Contributing Factors:
- Poor Business Decisions: Reckless strategies and bad advice have destabilized many businesses.
- Overconfidence and Ego: Some stylists became complacent during easier times, leading to unprofessional behavior on social media.
- Price Inflation: Increased service prices without corresponding value have alienated clients.
- Economic Pressures: Rising vacancies in salons and studios indicate broader financial struggles within the industry.
"People are starting to consider making shifts and saying, maybe I should get into something else."
[13:15]
Current Challenges Faced by Stylists
Britt outlines the multifaceted challenges confronting today's stylists:
- Financial Vulnerability: Many stylists are financially unstable due to dwindling client bases.
- Increased Competition: With over a million stylists in the US and rising enrollment in beauty schools, the market is more saturated than ever.
- Shifting Client Preferences: Modern clients are more discerning, seeking higher value and professionalism.
"There's a lot of fear-based decision making going on right now."
[10:45]
Advice to Prevent Business Stagnation
Britt offers a comprehensive six-step plan to help stylists rejuvenate their businesses and avoid stagnation:
1. Verify Your Pricing Is Appropriate
- Assess Market Fit: Ensure your prices align with the value you offer and the expectations of your target market.
- Avoid Price Lock-In: Be open to adjusting prices based on market feedback and operational costs.
"A huge portion of the industry has overpriced themselves."
[22:30]
2. Look Like a Hairstylist First and Foremost
- Professional Branding: Maintain a polished and professional image to build trust and perceived value among clients.
- Avoid Hobbyist Appearance: Ensure your business is presented as a serious, professional venture rather than a casual hobby.
"If you want people to trust you right now, when perceived value is as high as it is, you need to look as professional as you possibly can."
[27:10]
3. Schedule a Professional Photo Shoot
- Enhance Visual Appeal: High-quality photos can significantly boost your online presence and attract new clients.
- Invest in Quality: Consider professional photo shoots as essential investments that can pay off by bringing in new clientele.
"If it costs you $500, which I think is a really high-end price point for a great salon shoot, but in some markets, that's how much it would cost... it's paid for itself."
[29:50]
4. Set a Goal to Get 50 New Yelp or Google Reviews in 2025
- Leverage Reviews for SEO: Regular, positive reviews on platforms like Yelp and Google enhance your online visibility and credibility.
- Consistency is Key: Aim for at least one new review per week to keep your profile active and engaging.
"Yelp and Google still is where it's at."
[34:20]
5. Utilize Your Photos Effectively on Social Media
- Regular Posting: Commit to posting a minimum of three times a week across all social platforms.
- Strategic Content: Use smart captions and targeted strategies to maximize engagement and attract potential clients.
"If you can spend an hour a week to post, so much better than spending seven hours scrolling."
[36:45]
6. Have the Best Website in Town
- Optimize Your Online Presence: A well-designed website with professional photos, clear pricing, and user-friendly navigation is crucial.
- Reflect Professionalism: Ensure your website accurately represents your brand and appeals to your target audience.
"If you can commit to just 90 days... get your website literally like the best in town."
[40:10]
The Rise of Gen Z Stylists
Britt highlights the burgeoning influence of Gen Z stylists in the industry:
- Tech Savvy and Knowledgeable: Gen Z brings fresh perspectives and advanced skills, rapidly gaining prominence.
- Innovative Approaches: Their adaptability and hunger for success are driving significant growth and change within the beauty sector.
"They are exploding. Do not sleep on Gen Z. It's coming."
[31:30]
The Critical Next Few Years
Britt emphasizes that the upcoming two to three years are pivotal for the beauty industry:
- Make or Break Period: Stylists must adapt and implement effective strategies to survive and thrive.
- Diverse Outcomes: Expect a mix of unprecedented success stories and continued struggles, with some stylists exiting the industry altogether.
"The next two or three years are going to be critical for everybody. Whether you've had success in the past, whether you've never had success in the past. This is make or break it."
[42:00]
Conclusion
Britt Seva wraps up the episode by reinforcing the urgency for stylists and salon owners to take proactive steps in stabilizing and growing their businesses. By implementing the outlined strategies—ranging from pricing adjustments to enhancing online presence—professionals in the beauty industry can navigate the current challenges and emerge stronger.
"Those who choose to double down will find greater success than they've ever seen before."
[50:20]
Britt encourages listeners to commit to a 90-day action plan focused on improving key aspects of their business, assuring them that with dedication and strategic effort, it's possible to secure a prosperous future in the ever-evolving beauty industry.
Key Takeaways:
- Understand the Current Market Dynamics: Recognize the division within the industry and adapt accordingly.
- Implement Strategic Business Practices: From pricing to professional branding, ensure every aspect of your business aligns with your goals.
- Leverage Technology and Reviews: Utilize online platforms effectively to boost visibility and credibility.
- Invest in Professional Presentation: High-quality visuals and a robust online presence are non-negotiable in today's market.
- Prepare for the Future: Embrace the rise of new generations in the industry and be ready to evolve with changing trends.
By addressing these areas, stylists and salon owners can not only prevent their businesses from shrinking but also position themselves for remarkable growth and success in the years to come.