- Small business owners are worried about the possibility of a recession.
- Driver co-founder Alli Webb launched a $ 255 million business during the Great Recession.
- He provided advice to entrepreneurs facing a recession based on three keys to their success.
While still suffering from inflation and supply chain problems, many small business owners are also worried about the recession and how it will affect their bottom line.
At the Goldman Sachs 10,000 Small Business Summit on Tuesday, Drybar co-founder Alli Webb has an audience of over 2,000 entrepreneurs on her journey to build a multi-million dollar business. I talked to.
The salon chain specializes in breakouts and was launched in 2008 in the midst of the Great Recession. The company was acquired by listed consumer goods developer Helen of Troy for $ 255 million.
Webb attributed Drybar’s success to three key factors: customer service, brand, and passion.
“To do as much as possible for our customers, I learned by looking at my parents who have their own business,” he said during a chat with clothing run by his parents. I mentioned the store and said.
Apart from that, he talked to insiders and provided more advice to founders who grew up for the first time during the recession.
Be price sensitive
First, Webb had to consider how much Drybar customers would be happy to pay for a puncture. His goal was to establish his brand as an “affordable luxury”. He wanted his customers to feel that they were receiving high quality service without paying too much.
“Women were cutting a lot of expensive things,” she said. “One of the things to consider when you’re in recession is that you’re very price-sensitive and people are willing to pay.”
He advised entrepreneurs to ask potential customers what they think was a reasonable price. Before starting a driver, Webb ran a mobile hair business and charged $ 40 per person. We consider this to be “cheap” compared to the $ 150 billed by other salons. After asking the customer how much he would pay, he charged $ 35 for the driver explosion.
The low price meant that their salon had to achieve more volume.
“Examine what this equation looks like to you and perhaps adjust it to work within these guidelines,” he said.
He added that if the economy improves, prices can rise.
“We had to do it when the world got better,” he said. “Our rent has gone up and everything has grown.”
Brands should make customers feel good
Founders tend to overlook the role of brands in building their business, Webb said. The driver’s signature yellow set it apart from other salons of the time, usually filled with dark colors such as black and gray.
But branding isn’t just about colors and logos. If you have physical space, many details affect how your customers feel when they enter the store. Music, temperature, cleanliness, hospitality, and even the bathroom are part of the customer experience. Brand loyalty.
“If you don’t pay attention to these details, it can quickly collapse,” he said. “If everything looks good, feels good, and smells good, I think people will really fall in love with your business.”
Passion to continue
Webb said one of his investors bought him a mole-pounding machine and it’s a perfect metaphor for running a business.
“You will put out one fire and another will come out,” he said. “It’s never easy, the problem will never end. It’s how you treat them.”
That’s why passion was the third key to success.
“To be successful, you need to love what you are doing,” he said. “There are good days and bad days. You must really love him enough to continue and continue those bad days.”
Ultimately, Mr Webb said the economy would always fluctuate, but that still couldn’t stop economic growth.
“We knew we were in recession, but I didn’t pay much attention to it,” he said. “Be careful with that, but don’t let it guide you.”