Professional Beauty South Africa Nov/Dev 2021

Page 21

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Creative ways to diversify your

revenue streams during tough times

Beauty business expert, Liz McKeon, provides some invaluable tips on how to thrive in challenging times ith COVID-19 forcing many businesses into lockdowns and to modify operations, salon owners, managers and teams have had to get very creative with bringing in revenue. Finding new revenue streams is a must to keeping your business afloat in difficult times such as these. That’s where diversification comes in. It occurs when a business develops a new product or service or expands into a new market. Often, businesses diversify to manage risk by minimising potential harm to the salon business during economic upheavals. The basic idea is to expand into a business activity that doesn’t negatively react to the same economic downturns as your current business activity. If one of your revenue streams is taking a hit in the market, one of your other divisions will help offset the losses and keep the company viable. For example, moving to a virtual retail service

online @

Build YOUR SALON around SERVING THE CLIENTS YOU LOVE and you can NEVER GO WRONG. during lockdowns. Salons can also use diversification as a growth strategy. Diversification can happen without spending more money or having to hire extra staff because it can be more about using wasted resources rather than investing more money into the salon. Furthermore, diversification can either help you tap into exciting new markets to take advantage of high potential growth, or it can simply fill a niche that satisfies your existing client base. Both ends of this approach will help you grow the salon with very little added investment or expenses. Here are some tips for diversifying your company’s cash flow.