Update Part 2: Frustration
I had always dreamed of having my own business, and I finally did it! I was open and ready for business. But there was one important piece of the puzzle missing… clients. I better work on that.
January 2013 – I decided to ease into my new industry by marketing my business to friends and other people that I knew first to give me the opportunity to gain more experience and become more comfortable providing medical spa services to clients (as opposed to providing accounting services, which I had done in my career up to this point). I talked to everyone I could think of, I passed out my business cards, and I offered discounted “friends and family” prices, hoping to attract even more clients by word-of-mouth. I got a great response! Many people I spoke to were excited about my business and the idea of receiving discounted services and promised to become loyal clients. Only one showed up. This was not a good sign. But there would still be many potential clients at the salon where my new business was located, right?
I put up signs and talked to salon employees, offering half price services to all employees and “Grand Opening” discounts to salon clients, deals I thought would surely attract new clients to my business. Nothing. This was also not a good sign. However, the salon was still new and working to establish its own clientele, so I would have to give it some time.
March 2013 – After exhausting my word-of-mouth marketing campaign, I decided it was time to advertise on a broader scale to the general public. I committed to and purchased six months of advertising space in a popular free local magazine. The ads cost more than I wanted to spend, but I was hoping that I would get enough new clients through the ads that the additional income would more than pay for the ads. Also, having an advertising presence in a magazine that was circulated throughout my area would give me access to many more potential clients than I could ever contact on my own.
The day my first ad went out, I started getting phone calls! This was it! It was really happening! I started booking appointments and providing treatments. At my first appointment, I didn’t know if I would be able to do the treatment properly because my hands wouldn’t stop shaking! I don’t know if it was because I was so nervous or because I was so excited. But I got through it and hoped that would be just the first of many new clients to come.
April 2013 – When my second ad went out, I booked even more appointments! I was getting more and more excited and hopeful that my crazy business idea might actually work. Then, four months into my new business, I made my first big sale. That one sale, from that one client, earned me enough money to pay my rent for the whole month. Relief! Pride! Happiness! For the first time since the idea for this business popped into my head, I went out and celebrated, and I finally let myself believe that my business could be a success. (If only I knew then what I know now.)
Soon after, while I was still riding the high of my first profitable month as a business owner, I was offered a two to three month contract job in my old industry of tax and accounting. I cannot lie, the job was tempting. The income from this job would make my “big sale” look like pocket change. If I took it, I wouldn’t have to worry about paying my business expenses or my personal living expenses. Everything would be taken care of and easy again, just like in my old life. But I was starting a new life now, and I didn’t want to go backwards. I turned down the job. I needed to focus my full attention and efforts on building my new business. Please let the momentum and promise of the last two months continue!
May 2013 – My next monthly ad went out. No new clients. In fact, I hadn’t gotten any new clients for a while, and while I did have a small stream of reliable appointments at this point, I realized that so far every client I had was acquired from my ads or the word-of-mouth marketing I had done. The salon was not providing me with any clients, which had been the main reason I agreed to rent a space there.
The salon was supposed to be completed, fully operational, and fully staffed at the beginning of the year, with a grand opening event to be held shortly after. However, the construction on my space within the salon was still not completely finished, there were no signs outside the salon or along the road to indicate that the salon was open or to attract customers, and there had been no further mention of the grand opening event. Understandably, therefore, the salon was very slow with few, if any, clients coming in. Fewer clients for the salon employees meant fewer potential clients for me!
The employees, like me, were limited to their own marketing efforts to obtain clients. In order to compensate for the owners’ short-comings, employees were resorting to designing and purchasing their own signs and advertisements for the salon, which I was prepared to help with. What was the owners’ response to our efforts? We were not allowed to display our own signs or advertise the salon. The employees had long been voicing their complaints and questions about the state of the salon to the owners, but it was time for me to talk to them about my concerns.
I told them that they were tying our hands (and limiting our income) by not allowing us to market the salon, but also not doing it themselves. I informed (i.e. threatened) them that I would not pay rent again until they did what they had promised to do when I signed my rental agreement (finish construction, display signage, basic marketing, etc.). The next week the construction on my space was finished and a grand opening event was scheduled. Well… it’s a start. Better late than never! At least I got their attention. I hope things get better.
June 2013 – The salon owners made a pathetic attempt at a grand opening event (they set the date, and employees were responsible for everything else… invitations, refreshments, entertainment, etc.). Epic fail! The salon was going down fast, and I didn’t want to go down with a sinking ship. I withheld rent for half a month, until after the grand opening, which the owners fought me for but eventually gave in and forgave. I think they knew they failed me. I was told by several people that it was very common in this area for businesses to be slow during the hot summer months. Should I wait out the hot weather or jump ship now?
Many of the employees chose the latter and left the salon. Only six months after it opened to promises of a full staff, the salon was only at 20% capacity now. I felt like I had no choice. I had to leave too. But what should I do? Should I move to another location? Or should I get out of the business and go back to my old career? I can’t believe I’m faced with this decision only six months into my new business! What am I going to do now?!
Month 7: Money Spent – Half my Life Savings
Profitable Months – 2
Frustration Level – 8
