Innovative Ideas for A Struggling New Business

Business Wise with Yaneek Page

QUESTION: I'm a hairstylist who lived in the US for many years and returned to Jamaica in 2012 to open my own salon. Unfortunately, things have not been good. I don't have enough customers to break even and I'm frustrated. My location in Kingston is good, but parking is limited. I have printed business cards, flyers, and did BB broadcasts. The response - not good. How can I get more customers?

- C., Kingston

BUSINESSWISE: Don't be disheartened. You are in a field that has good potential in terms of scalability, sustainability, and profitability, but to move forward you need to develop a strategic plan and start executing.

The plan will outline your vision and medium-term goals, and exactly how you will achieve those goals.

It forces you to answer questions such as: Where do I want to be? Where am I now? What do I need to do to realistically bridge the gap? What is my unique selling proposition (USP)? How can I navigate the economic environment and other external challenges?

Before you delve into the strategic planning process, you must ensure you are operating lawfully. You first need a licence from the Kingston and St Andrew Corporation.

To apply, you will need a health certificate, proof of training/certification, certified photos and to pay fees of J$3,000 per year.

The requirements are slightly different if you are operating a salon. You can find detailed information at www.ksacorp.gov.jm.

Another statutory obligation is registering your business/salon name at the Companies Office of Jamaica. This opens the way for lawful advertising and allows you to protect your business name which is critical to your strategic plan.

You can register as a sole trader, which is a fairly simple process that can be completed in a few days. Learn how atwww.orcjamaica.com/services/bus_registration.asp.

Now back to strategic planning. You will need to carve out a niche in order to create a competitive edge because the hairdressing business has low barriers to entry and there are many players offering the same services.

You could, for example, offer a green salon, and treat your customers to all natural, non-toxic, chemical-free hair-care services. Or you could be known as the place to go for styling, managing, and restoring damaged hair - a problem which is prevalent in Jamaica because of widespread abuse of chemical treatments and overuse of weaves.

Another possibility is to focus exclusively on pricing, for example, charging a flat fee of J$1,500 for any service. Offering extended opening hours - early mornings, late evenings, and even public holidays like Independence Day, Heroes Day, and New Year's Day could be another option.

These are just ideas to get you thinking. The key themes are innovation, differentiation, and a strong value proposition. Their importance cannot be overemphasised.

Pay close attention to pleasing your customers and creating an enjoyable experience from start to finish.

You mentioned that your location is central but the parking is limited. Depending on your target market, that could kill your business. If you are targeting professional women who drive, adequate and secure parking is essential as they want convenience and comfort, not stress, when they visit your salon.

Aesthetics, cleanliness and service outcomes, that is, whether customers love their hairstyles, are important in expanding your customer base.

ATTENTION TO DETAIL

Every detail counts, including proper restroom facilities, cool salon temperature, great design/layout, fast and friendly service, etc.

Remember, in business you only get one chance to make a first impression, so everyday matters.

You will note that I've placed great emphasis on your service. That's because it makes no sense for you to spend money promoting bad service. In fact, no amount of advertising and public relations can mask inferior products or services in this age of social media and growing consumer power.

Once you have properly addressed the above, the crux of your strategic plan will be advertising and promotions.

Unfortunately, I can't say what strategies will be most effective because I don't know your niche, USP, budget or target market. Flyers are my least favourite advertising method because they can be expensive, may not reach the right people, are environmentally unfriendly and relatively ineffective.

I do, however, recommend that you incorporate social media in your marketing efforts, especially Twitter, Facebook and Instagram, which are growing in popularity in Jamaica.

Get professional help for maximum benefit. Try to create a good online portfolio of your work, with quality pictures which can be shared with existing and potential customers.

Also, consider doing video logs on hair-care methods or techniques, new hairstyles, hair-care product reviews, and more.

One love!

Yaneek Page is a trainer in entrepreneurship and workforce innovation. Email yaneek.page@gmail.com. Twitter: @yaneekpage; website: www.theinnovatorsbootcamp.com.

As published in The Sunday Gleaner, July 28, 2013