If you’re looking for a smart investment in a recession resistant industry, you may want to consider hair care. Here are seven reasons why:
- Consistent and growing demand.
Haircutting is part of a $75 billion industry. Year after year the beauty industry has had above average gains compared to the general economy. Even in economic downturns the industry has stayed stronger than the national average. Haircuts are considered part of a household’s usual expenses. Quality hair care services at a reasonable price will always be in demand. People may cut eating out from their budgets, but they will not completely cut out haircuts, making it a fairly recession resistant investment.
- Recurring revenue stream.
Haircutting is not a one and done service, but instead clients return on average every one to two months, with men and boys coming in even more frequently. It also requires a personal level of service that fosters brand loyalty. A reliable stream of repeat clients creates stability in a business.
- Low overhead costs.
A haircutting business is typically a stable cash business with minimal inventory and no receivables. Operations are simple and easy to execute. There are no food margins, spoilage issues or commodity pricing to impact your bottom line.
- Can’t be automated or outsourced.
Haircutting cannot be replaced by technology and therefore will not be rendered obsolete. Creating a relaxing haircut experience requires a personal touch that cannot be outsourced or automated.
- No previous salon experience necessary.
When you own a haircutting salon, you can hire skilled professionals to do the haircutting, as well as a salon manager to run the daily operations. Your time can be spent on marketing the business, handling the back end of the business, and people management. These are all transferrable skills from the corporate world. A good franchisor will provide checklists, processes, training, online resources and a dedicated support team to help you successfully execute their business model.
The haircutting industry lends itself well to a manager-run business model. By having the day-to-day operations of your business handled by someone else, you have the freedom and flexibility to maintain other commitments. This flexibility allows you to achieve your personal and financial goals on your own terms.
When you are not tied to the daily operations of a business, it has greater growth potential. You can expand your business beyond what you could if it was centered around you running it every day.
Ready to own your own hair care business?Learn how Sport Clips Haircuts, with its proven business model and comprehensive support, is leading the hair care industry. Request a conversation here to learn more.