The Pivot Point

With a tough financial outlook for 2023, Hellen Ward shares her advice on how to adapt to stay on top

So, here we are in January. Amidst a winter of discontent, a looming recession, rising inflation, a cost-of-living crisis (which we don’t yet know how greatly will impact our customers and what long-term consequences might result) and an industry that is becoming increasingly fragmented into different operational business models, with disguised employment the biggest issue, you may well ask, “Have we got anything to smile about?” I think the answer is still “yes”.

Some regular readers will know that I am vice president of two fantastic and very different things – one is the Hair and Beauty Charity (a cause I have been passionate about since getting involved 18 years ago) and the other, the British Association of Women Entrepreneurs (BAWE), the UK arm of one of the biggest global networks championing women entrepreneurs across all sectors. Our members work in the arts, finance, law, charity and retail, to name but a few – and, of course, the beauty industry.

As we gear up for 2023 at the charity, we have ring-fenced funds to meet the impending calls for help that we are expecting as an industry once those dreaded fuel bills hit. Too many of our beneficiaries are already forced to go to food banks to feed their children as they struggle to make ends meet, and with “non-essential spending” becoming a buzzword in many cash-strapped homes, we envisage our funds will become more and more critical to those working hair and beauty professionals who may need our help.

See the opportunity

Meanwhile, at BAWE, we are expecting to see some extremely challenging times, but also some new ventures because many businesses actually launch in recessions as entrepreneurs find a niche in the marketplace that arises as a result of an economic downturn. Many grab the opportunity with both hands – as one door closes, another opens, as the saying goes.

At our recent BAWE lunch, our guest speaker was MP Esther McVey. Her story is amazing – “from care home to the cabinet” is how it’s described. A poster-girl politician, a businesswoman, a former TV presenter; Esther lives her life by a mantra many of us could take inspiration from.

Esther told us how she sees life as a great adventure – and saying “yes” to every opportunity is a huge part of that. Her career changes have been the result of her truly going for it – and learning to be comfortable with rejection.

Failing is nothing to be scared of. In fact, it should be something that becomes par for the course. After all, she argued, her chances of getting into TV were one in 1,000, so at those odds she should expect 999 rejections. Her childhood and lifelong mentor (her ballet teacher) told her that failure is not what happens when you don’t achieve, it’s what happens when you don’t give it a go. She’s lived her life by that sentiment and that’s why she’s accomplished so much.

So, how does Esther see the recession? Addressing our group of mainly SMEs (small or medium-sized enterprises), her motivational advice hit home. Smaller businesses, she argued, are better placed to cope with recession and economic downturns than the large corporates. Why? Because we can be more reactive, more nimble, more agile and more responsive than large companies who traditionally have so much structure, system, process and procedure that they can’t reset quickly and “pivot” like smaller companies can. Our agility is what will be our biggest strength. Sound advice.

So, how can we apply those principles in these challenging times?

1. Monitor – we can only manage what we monitor, so tracking everything carefully is key – and not just the expenditure, but the income too. This is how we notice spikes, downturns and trends.

2. Act – once you spot a trend (good or bad), fast action is key. Being on top of the finances is critical and acting on what you discover is vital. Now is not the time to develop an ostrich mentality.

  3. Ask customers what they want, then ensure you deliver. There are always opportunities, even in challenging times. If we don’t ask our clients for their feedback and what they are looking for (or worse, buying elsewhere), we can’t compete. 

4. Avoid the “silver bullet syndrome”. There’s never one big answer to everything. The saying “look after the pennies and the pounds will look after themselves” is never more pertinent than during a downturn. Don’t be reticent to focus on the big picture without drilling down on the detail. 

5. Involve the team – great ideas and suggestions come from the staff, so making sure they totally understand the business challenges and can give insight and input into not just customer behaviour, but also ideas and suggestions, is critical. Embrace their feedback and act on it.

2023 is not going to be easy, that’s for sure. But if we act nimbly and try to be proactive and swiftly reactive, we should steer ourselves through these troubled waters into calmer seas. We’ve been through so much in the last few years, and we are still here. We can get through this. We always do.

Hellen Ward is managing director of Richard Ward Hair & Metrospa in London and a beauty ambassador for the National Hair & Beauty Federation (NHBF).