It is a bit of an irony that some business owners try to project the idea that they are bigger than they really are. As much as we might say bigger is not better, our attitudes and actions will determine whether we really believe that or not. There is strength in being small once you discover how to harness your energy.

The idea of comparing the size of a business, to the size and power of a boat, provides an excellent analogy. A cruise ship may withstand storms and high waves much better than a small yacht, but it is not very maneuverable. A speedboat can go places a ship could never attempt. It is faster, agile, and can turn quickly to avoid danger.

These comparisons are no surprise. Most people seem to realize these differences, but contemplating them well enough to seize their potential is what separates the weak from the strong. The small athlete, who could easily be crushed by bigger competitors, can still win by dodging them and outrunning them.

For small business owners to adapt the same thinking as big business can easily bring disaster. You have the advantage if you think differently. Business models are changing fast, and a small agile company can adapt more quickly. There are big companies teetering on the edge of bankruptcy. Some of them are so steeped in outdated business practices, that they cannot adapt quickly enough to avoid hitting the iceberg.

While big corporations may have an advantage in marketing budget and buying power, small businesses are usually better at having substance. They can respond to their customers and provide more personalized service. They can specialize and prosper in a smaller niche market that would be impractical for a bigger company.

It is difficult, perhaps even impossible, for a big company to operate as efficiently as a small business. With small business, efficiency is not optional. Wasted resources can easily ruin a small business. Because efficiency is so necessary, small businesses tend to be much more productive.

Small businesses can also easily implement methods to increase their efficiency. Advances in areas such as lean manufacturing, modular tooling and work cells, automation, communication, and information technology help level the playing field for small business. With video conferencing and the Internet, collaboration can be accomplished without expensive travel.

Creating a salon business plan that reduces costs and maximizes potential can be difficult if you do not have proper guidelines in which to work. Without a well-defined business plan, a salon will tend to lose focus and spend money in all the wrong places. In our current economy, overspending cannot be tolerated and spending mistakes can take your salon down into the red all too quickly. Two simple tips can help you to create a business plan that is realistic as well as ambitious.

Mission statement

The heart and soul of any successful salon is a mission statement that is simple, straightforward and challenging. If you are interested in managing costs, this process is essential, as it serves to focus the aim of your salon and curb unnecessary spending.

For instance, if your mission statement includes providing “top quality haircuts and color services to an enthusiastic and loyal local clientele”, your spending focus is unavoidably clear. Your mission statement clearly constrains you from risky ventures such as attempting to sell makeup products in order to bring in extra cash and from wasting precious advertising funds on markets outside of your immediate region. You would instead focus your financial resources on training your stylists, testing out high-end color lines and marketing specifically within your local area.

Strategy

Once you have a finely honed mission statement, it is important that you identify specific strategies within your salon business plan that will result in the successful fulfillment of that mission. For instance, using the mission statement above, you would want to identify key strategies to get clients enthusiastic about your services and loyal to your salon.

Creating an effective strategy as part of your business plan will allow you to avoid costly and ineffective customer loyalty ploys later down the road. If your plan is decided from the outset and you make your customer rewards clear from the beginning, you will get the results you are after as a simple matter of course.