Can a business succeed in a HIGH COMPETITION area?

[patrickcasey]

Hi everyone, first post so be gentle..
I'm a hairdresser in one of Sydney's best salons but I'm getting ready to launch my own salon at the end of the year, my only concern is that I live in the suburbs and the city I'm in has a lot of competing salons.

I feel as though they are all very standard businesses, meaning they aren't that great. My plan is to open a city salon in the suburbs with an entirely new level of standards.
My fear is that with so much competition, and new salons opening all the time, is my town eventually going to be over run with hair salons and we'll all suffer because of this.

Can a GOOD business really flourish when there are MANY businesses within walking distance of each other?

[KarenC]

Hi and welcome to FS.
There are many businesses in a similar situation to yours.
It's really about a point of difference.

There's always going to be more businesses like yours - you have to plan how you are going to be different and why and what you offer.
And believe in yourself because there will be difficult as well successful times.

This marketing article from Business Builders might help you.
http://au.smallbusiness.yahoo.com/gr...arketing-plan/

Plus, go through the Marketing articles (there's loads of them) on Flying Solo starting here http://www.flyingsolo.com.au/marketing
including this one http://www.flyingsolo.com.au/marketi...stomer-loyalty

All the best.
Karen C.
.

[sam_leader]

Welcome to the forum, Patrick,

I think standing out can definitely happen and hope you are able to differentiate your business. For me when it comes to hairdressing, it's about the quality of the experience and the cut. I also find 'top salons' a bit intimidating, but maybe I've been out of the city too long!

Karen's already made some great suggestions and I'm sure others will hop in with some top tips too.

Love your work,

Sam

[yourvirtualboard]

Don't forget supply and demand – while it is high competition, in your industry there are a lot of potential clients, therefore a lot of salons. I have seen centres with 3 salons and all busy. If my wife is anything to go by, once she finds someone she trusts with her hair she's a client until they move or we move. How many of your clients might follow you to give you a good start and then Karen has supplied some great info and Sam given you some good insight.

It may pay you to do a simple plan or at least budget of what you might expect to get as income and what your monthly costs might be and then work out how you can grow the income if that’s what you want to do.

[Khalid Adam]

In most cases the answer is "yes. how?

By differentiating yourself. Create your own category. Cater to a specific market. Connect with your audience at a personal level.

When you try to sell to everyone, you have to deal with competition.

[patrickcasey]

Thanks for the feedback guys, I really appreciate it. If anyone else has anything to add please feel free to do so.

I really believe in my quality or work and service, my fear is in convincing clinetelle to visit in the first place, as hairdressing clients are very loyal.

Again thanks to everyone who posted so far!

[Five Star PA]

Of course you can succeed! Agree totally, define your differences and then make sure you market these very effectively!

Make sure the suburb your opening in is economically in line with the prices you will charge. Nothing wrong with charging premium price for premium product but you need to ensure you've chosen the right area.

Run promotions to get the thing going. Maybe do some cross advertising with some similar businesses ie. Offer free 'DOs' and let someone else put this in their newsletter so your utilising an existing database. From day one I'd be trying to capture clients personal details in some sort of CRM system , make it clear to your staff you need to find out at least one bit of info you can 'sneak' onto the system so next time they visit you can bring it up , ask them how it went and help build that strong relationship that keeps them coming back. Get your Social media happening too, FB and Twitter as if you can get your clients following you, it's easy to run campaigns for quite days.

Good Luck! I really believe if you're passionate, you'll make it happen!

Meredith

[NickHumphries]

Yes!
you just need a point of difference that seperates you from your entire competition! What is it that they don't have? What can you do 10x better and will get people talking?

[PaulyT]

Karen C beat me to it...... point of difference is critical!

Keep it fresh and affordable?

[patrickcasey]

Thanks Guys.

Does anyone have any good ideas that would make an extra point of difference?. I believe that my biggest point of difference is in quality of work, and a different "larger" understanding of what customer service is and how to be professional (something i find missing around here normally) - these are great points of differences, but it wont get clients through the door.

Lets face it, doesnt every new business say that they will obtain qualities such as "good customer service" and "the best _____ experience".

If anyone has any other ideas that could really help me stand out of the crowd i would love to hear from you.

I am so passionate about what i do and its great to hear from people who are genuinely interested.

Thanks again