About recession worries: Is my skincare business at risk?

Well, yes and no.

The key question is, what kind of business do you have and how loyal (and financially secure) are your clients/customers? If you’ve been following me over the last zillion years you know that I’ve STRONGLY recommended building your business around services that generate the most income and have the best client loyalty. Acne and age-management facial treatments with lots of related retail. Waxing, if you do it, can also be a potent client-retainer but the retail connection, while there, is not the equal of sales in face care products. Hear it from a man who’s survived 4 past recessions, a long Covid shutdown, steadily growing competition, and the onset of e-commerce sales. I made it through all that and more…much more!

When economic times drift south many of our colleagues, particularly the newer ones, become frightened and desperate, slashing prices or resorting to Groupon-type promotions to keep the lights on. That hurts everyone except those whose customers are so devoted they’re unlikely swap us out for a deal. But even the most successful businesses are affected by slowdowns, and will see their revenue slip for a time. This is why I have pleaded with my professional friends to set aside as much money as possible to help get them through eventual leaner periods.

Recessions are like economic viruses, wiping out all but the healthiest businesses, which is a huge number them. Look what Covid did. It’s important not to overreact or panic. And whatever you do, DO NOT talk about the shaky economy or your personal fears with clients, as much as you may want to commiserate with them. Clients visit us, in part, as an escape from the real world, so it’s wise not to bring them back to it while in service. Put on a brave face, treat your clients with grace and care, and then use your down time to re-evaluate your business to make it more efficient and profitable, not cheaper.

Best to you!

Douglas Preston Easley