Puseletso Modimogale had been operating her beauty spa, Therapeutic Touch Studio, for six years when the recession hit. She quickly realised she needed to adjust her business model if she wanted to stay competitive.
“Up until that point we had been growing steadily,” she explains. “I had grown from a single entrepreneur who was beauty therapist, receptionist, salesman, and accountant to an employer. We had loyal customers. We had also branched out into the corporate market, and our attention was equally divided between the two markets, although I was more comfortable with the private salon market.”
The recession threatened what Modimogale had built though. She needed to realistically assess what direction she should take.
“We decided to shift our focus towards the corporate market,” she says. “It took me completely out of my comfort zone. Dealing with corporates is another language, although we had developed a strong focus on customer satisfaction in the salon.”
Despite her apprehension about taking attention away from the salon and focusing on securing more corporate clients, Modimogale knew it was the right adjustment. “Today 80% of our business is corporate clients who have contracts with us. It’s steady, predictable business.”
Modimogale’s next step is to create mobile units that can service her corporate clients who have offices outside Gauteng. “I’ve learnt that you can’t sit back and hope things stay the same. The market is constantly changing, there’s a steady stream of new entrants because of low barriers to entry, and you need to stay ahead of the curve. You need to adjust your offering.”
Player: Puseletso Modimogale
Company: Therapeutic Touch Studio
Contact: +27 (0)82 689 9611