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

Complaints From Customers Are Gifts to Companies

I recently visited a food establishment and while making a purchase at the cashier burned my hand on a heated keg near the cash register.  The burn was mild but I was in complete shock that any company would keep such a hazardous piece of equipment in the way of customers. Even more shocking however, was the insensitive response of the cashier -  "sorry about that, but there's a sign you know? It's right there", she said, pointing to the sign "HOT....." which was taped onto the keg, at waist level, which explains why I didn't see it in the first place.  Because she shrugged off my ensuing lecture on risk management, the duty of care owed to children in particular and the right of consumers to a safe environment, I decided to broadcast my concerns to the company on twitter.

There are two important things that every small business should master -  delivering great customer service and managing customer complaints. In fact for Jamaica especially, one of the most effective ways  for small businesses and start-ups to create a competitive advantage is to offer great customer service consistently.  This is because great customer service is not the standard to which we are accustomed, so companies that offer it provide a refreshing change that their customers will embrace, appreciate and talk about to others.  Such positive word of mouth is essential in brand building and boosting sales as evidenced in a recent Neilson study which outlined that 90% of online consumers worldwide trust recommendations from people they know and 70% trust consumer opinions posted online.

There's also substantial evidence that great customer service can increase a company's bottom line in a recession. Even in a negative economy, customer experience is a high priority for consumers, with 60% of persons choosing to pay more for a better experience, that's according to the Customer Experience Impact Report 2011 produced by Harris Interactive, a respected US based research company. The same report noted that 86% of US consumers stop doing business with a company because of a bad customer experience, up from 59% in 2007.

When delivered effectively, excellent customer service should  come across as seamless and genuine.  However it takes proper planning, commitment and dedicated resources to be able to deliver such service. Here are some key ingredients for great customer service that small businesses and start-ups can note:

1.    Establish the right company values which clearly put customers first

2.    Define, understand and create  a service excellence culture which requires leading by example

3.    Ensure you have the appropriate infrastructure to deliver exceptional customer experience, including the right physical layout and optimal process flow

4.    Hire the right people

5.    Continuous  training & development, and good compensation of staff

6.    Documented policies, processes & procedures

7.    Consistent monitoring, measuring and evaluation of your service

Welcoming, capturing and properly analyzing customer feedback is necessary at all steps of customer engagement. Possibly the most important feedback you'll ever receive is when you've just started a business or just launched a new product or service. It is at this time, when you've not completely worked out the kinks that you should try to capture as much feedback from your customers as possible and use it to help improve your services and operations.

Treating  complaints as gifts

Effectively managing complaints is one of the most essential components of the customer service process. I would hope that by now the company I mentioned earlier has realized that my complaint was a big gift. First I alerted them to a problem they probably did not know existed, giving them an opportunity to fix it before another customer is injured and potentially preventing financial loss to the company from legal action for negligence. Second, I gave them the opportunity to apologize, win me over and keep me as a customer.  Most unhappy customers do not complain, but rather stop doing business with the company and warn off family and friends. With the advent of social media angry customers have the ability to reach hundreds if not thousands of people with the click of a button. Small businesses should therefore avoid the trap that many companies in Jamaica have fallen into in viewing and treating complaints as negative. It's important to note that it will cost a company 5 times as much to attract a new customer as it will to keep an existing one. I was pleasantly surprised at the quick response of the company to my tweet. They appeared genuinely apologetic, and also said they would see if the keg that burned me could be moved to avoid such incidents in the future. However, a company with a more robust customer experience policy would have probably offered something tangible, such as a gift certificate or discount on future purchase.

As published in The Sunday Gleaner dated July 14, 2013. 

One love! 

Yaneek Page is an entrepreneur and trainer in entrepreneurship & workforce innovation. Email: yaneek.page@gmail.com, Twitter: @yaneekpage , Website: www.theinnovatorsbootcamp.com