"From a technical perspective, the recession is very likely over at this point," Federal Reserve Chairman Ben Bernanke told a conference at the Brookings Institution in mid September. He went on however, to caution, “that many people will still find that their job security and their employment status is not what they wish it was." The harsh reality is that the worst recession since 1931 may be over from a “technical perspective” but the affects of the recession on the job market will be impacting and long lasting. As companies struggle to keep their doors open by cutting their greatest expense, labor, unemployment has risen to a 26 year high of 9.8%, and according to the latest Federal Reserve outlook, unemployment rates are expected to remain high for five or six years. As gloomy as this outlook seems, it does not mean that ample opportunity does not exist to make more money than ever before in an economy where there are currently six times as many people seeking work as there are job offers. One Brooklyn Mom has found a way to thrive during the recession without waiting on a bailout or for the economy to change.
Nefer Bernard seems like a typical mother of three when you see her at a PTA meeting or at one of her children’s sporting events, but what you don’t see is the mastermind behind a thriving business that has not only survived during the recession but has seen a huge boom in business despite the poor economy. Nefer, as she is known by her clients, is the founder and lead stylist of Sheny Nefer Natural Hair Care, Inc. in Brooklyn, a local leader in the natural hair care industry that has been featured in national magazines as well as at hair shows in the International African Arts Festival, Intertwined VI and shows in Philadelphia and Atlanta. Nefer has a unique business model that has all of the ingredients for success. She says her formula for success is “simple and can be used by anyone.” Her formula can be summed up as: tap into a growing niche market where there is little competition, learn from and maintain relationships with mentors, and keep your start up and operating costs to a bare minimum.
Nefer didn’t come upon this winning model right away. Nefer said she tried other businesses that just didn’t work out; a day care center, custom made, African centered, designer baby bedding, and a slew of multilevel marketing ventures. Having locked hair herself, Nefer said she always had an interest in natural hair and saw a growing trend in working women locking their hair and wearing natural styles. Nefer decided to go about this new business venture differently. She knew that in order to be successful she had to develop not only her hair care skills, but her business skills as well. Nefer said she, “became an apprentice with a well established stylist, and later became a hair model for a pioneer in the industry that was happy to share her experience in hair care and business with me.” Nefer still maintains her relationship with her mentor and they meet regularly to keep up on the latest trends in the industry. Most new business owners miss this critical step and flounder around making costly mistakes that could easily be avoided if they attach themselves to a mentor.
When doing research on recession resistant businesses I discovered that most experts believe that service-oriented businesses including plumbers, electricians, auto repair, carpet cleaners, handymen, and computer repair technicians tend to thrive in rocky economic times because people spend money on maintaining and repairing what they have as opposed to buying new items. So, I asked Nefer why she believes a salon that specializes in locking hair and other natural styles does so well. Nefer attributes the steady increase in clients to two reasons. She said her clients that still have a job have told her that their “appearance and presenting a good image is more important than ever.” Her clients feel that it gives them a slight edge in keeping their job to look well groomed with a professional appearance. Also, looking good helps them feel better during this stressful time in our economy.
When Nefer started her business she didn’t choose a traditional storefront, but instead took advantage of a situation that most people would be stressed about. When the tenant from the rental unit in her own house moved out, rather than find a new tenant, she set up her shop in the vacant apartment. Nefer said this served many useful purposes. First, as a mother, it gave her the ability to better “monitor the children, help them out with homework, and make sure they have a nutritious meal to eat.” She said, “I didn’t want someone else raising my children while I worked.” Second, it kept her costs down significantly. Nefer didn’t have to save up for a huge deposit and sign a long term lease with a landlord that she didn’t know. “Why pay someone else when you can contribute to your own household?” Nefer concluded. She saved thousands of dollars on start up and operating costs by running the business from home.
How does Nefer’s formula for success overcome the common adage that says the location you choose should get maximum exposure to walk by traffic? Nefer has built her business around exclusivity. She completely avoids walk in service and only schedules clients by appointment. She has set up a cozy, social atmosphere, where her clients interact and engage in great conversation. She even has theme nights and some clients only schedule appointments on those days. Her clients enjoy the exclusivity of being a Sheny Nefer client and have become advocates for her business. Referrals are the lifeblood of her business and she has capitalized on that by setting up a referral reward system to encourage her clients to keep sending new clients. Business is going so well that, in addition to the current stylist she now employs, she is looking to expand and bring in one or two additional stylists to keep up with the increase in demand.
Starting your own business certainly is not a simple task to accomplish. However, neither is getting up to go to work and having other people dictate your agenda, your meal breaks, what time you'll go home, and then leaving feeling under-appreciated and realizing you might lose your job at anytime. With no end in sight to the steady stream of people losing their jobs, now could be the perfect time for you to weigh your options, start doing research, and make a new and better future for yourself. Take advantage of the new opportunities that this new economy offers. For help getting started you can go to your local Chamber of Commerce, The Small Business Administration or your local library.
