Salon on the Verge of Closing: What Would You Do?
Next up in our series of helping business owners solve their most-pressing problems is Kristina Graham, a salon owner whose love for the business keeps her afloat, even when she's struggling.
Let's dive into her story and come together as a small business community to help her get back on her feet.
Missed the last few weeks? Check out personal chef Johanna Gelb's story and music production company owners Cody and Bj's conundrum. Each received an incredible community response, with over 100 other business owners chiming in to offer ideas, solutions, and expertise.
Let's show Kristina the same enthusiasm and support.
Have a business challenge you'd like the community to solve? Drop it in the comments for a chance to be featured.
Business Challenge of the Week: Salon Struggles
This week, we're featuring Kristina's Beauty Salon. Below you'll find more about her business, customers, and problem.
The Business: Kristina's Beauty Salon
Kristina has owned and operated a full-service salon in Carrollton, Texas for over 30 years. And her services go way beyond just a haircut.
Catering to both men and women, she offers everything from hair color and waxing to pedicures and acrylic nails. She even offers free nail art to go along with your manicure.
Like many small business owners, Kristina had to fight the odds to get where she is today. She bought her salon when she was only 18 years old and fresh out of beauty school—she had to sell her car to help pay for it. And even that wasn't enough.
Determined to secure financing, she went to the bank every day asking for a loan. She was told from the start that most women-owned small businesses fail in the first year. But that didn't stop her.
Her persistence eventually convinced the bank manager to give her a loan. Her nana covered the rest, and 30 years later, she's paid back every penny (nana included).
The Problem: The Pandemic Drove her Customers Away
But then Covid hit, leaving her struggling to make ends meet. "I'm already past the point of closing," she says.
But she loves her customers and the people who depend on her. "I can't find it in my heart to say goodbye to multiple generations of families or to lay my employees off."
Despite the fact that she's not making money, she's not ready to throw in the towel just yet.
I wish there was more help out there for us still trying to have the American dream. Any advice would help me—I’m not ready to give up.
What Would You Do?
Now it's your turn—what would you do if you were in Kristina's shoes? How would you try to bring in more customers and more money?
Take a look at her profile for ideas and then share your thoughts, solutions, and advice in the comments below.
Let's help Kristina get back on her feet, save her salon, and give other salon owners ideas and inspiration to keep at it. That's what this community is all about.
Comments (21-30)
Hi Kristina, so sorry to hear about your situation. As a professional accountant, we think in terms of preparing scenarios and putting figures to those scenarios. So think in terms of what might happen over the next 6 months and work out your cash inflows and outflows for various scenarios. Are your revenues reduced to the point of incurring operating losses? We would analyze volume of business to break even and see if and when that is achievable. Also consider how long you can continue incurring operating losses, by using up savings, lines of credit and similar sources. In these difficult times, I would approach every stakeholder - you need help from the lender, landlord and your suppliers. The more they are willing to defer and assist, the better your chances of survival. In this COVID crisis, I say we need help from everyone and we should also try to help others. Do you think your customers will continue supporting you? Some businesses are asking employees to take a pay cut until things improve. This may not work, as they are facing their own crises. It eventually gets down to your ability to survive by managing cash and depends on how quickly things out there improve. Assuming you have provided for safe operations for your customers and employees. Can you provide security to lenders to induce them to advance further lines of credit? Are there family and friends who would advance short term funds to help you out? Suggest you share your financial situation with others who can provide a different perspective.
Potential customers - which includes their family, friends, coworkers - within say a 20-minute walk, should be your regular customers and ambassadors for you. They are your ‘neighbours’. Write/design/deliver a ‘special invitation’ - neighbour to neighbour tone - to their mail box. Consider offering a ‘neighbour’ discount, asking for their help to keep you in business and continue to be a neighbour by becoming a customer and, ask them to ask others to consider your services.
Cost of this handout is minimal for the potential it offers. Is there another business you could partner with? Double the delivery area and split costs/effort which could include walking and delivering yourself. That presents opportunity to talk to people on the way and maybe at the door.
Best wishes.
I have but one question. Has the Texas legislature, that's both the State Assembly and Senate, passed a BILL that the governor of Texas has signed into LAW (or been passed into law over the governor's veto - I don't know the Texas State Constitution), that says you must close your doors?
If you were to open your doors contrary to current narrative, would your clientele patronize your business sufficiently for you to at least cover the cost of operation?
You may need an attorney to answer the first question and you and your hairdressers (hope I'm not insulting anyone) need to get on the phone(s) to your clientele to answer the second (understanding that the clientele's finances have probably been significantly hammered by what has happened as well.
Then make a business decision. It is YOUR business and livelihood.
Will continue to pray for your business .let me know the phone number
Kristina have you applied for the SBA Economic Injury Disaster Loan? If you have not it is available to small businesses. It is a $150,000 loan over 30 years at 3.75% interest. If you have good credit scores it should be no issue. I have put tbe link below. If you need help applying just let me know.
https://www.sba.gov/page/coron...
Use the link COVID 19 EIDL Loan apply here.
Kristina, Mr Ellis' suggestion could be the answer, if you are not ready to exit the business. However, you may wish to consider all your options. If you would like we offer a confidential consultation at no cost.
Myles
Where is your business? Call or email me for help!
Hello everyone, I was wondering if your staff can make house visits my daughter’s beautician comes to her now, and maybe that’s something that some of your clients would want if you put the word out there.
I am a wholesale company. We carry youth, ladies, and men’s sportswear. With the virus disrupting my sales, I have huge inventories of product. I am practically giving goods away in order to make payroll. I need some customers who can take large amounts of my goods. The goods are made with the Performance material.
An example of some products is; 1/4 zip pullovers. I am now selling at men’s—$1.50, ladies and youth-$1.00. Lots of colors. Just one example.
Another example; ladies and youth tees$.50
Lots more to offer.
I once owned a day spa. But having the dealership and spa wasn’t working. I didn’t do services. I remember that hair clients don’t like to change. Send them a $20 off color or something to let them know your still open or reopened. They probably think you’re closed. Good luck.