Time out for ma and pa businesses!

I just saw a post on FB that a friend made. It was a PSA to hairstylist about increasing their prices because their business has decreased. It read : PSA for stylists: When you clientele starts decreasing, increase your marketing. Don't resort to raising your loyal client's prices to compensate your profit margin. That is all.

Now I understand the concern the poster and others have as it relates to maintain loyal clients; however, I often wonder why in certain industries people expect to be treated differently because of their loyalty. I know there are some companies who have customer loyalty programs but some of these programs cost and the rewards are not always as great as we would like them to be.

I digress. So I asked the person who posted this if this stylist has a said price list visible in the salon. Of course the answer was no. The prices are in the stylist head. HUH? So I suggested that maybe it is time for the client to find someone else to service her. Maybe she should go to a salon where there is a set price list.

So I guess my question is this: Why are there so many businesses (especially in the Black community) that are ma and pa businesses? I know this is how many of them got their start, but when do they progress and grow? Now, the original post was about increase your marketing, but how much marketing is being done if this woman does not have a set price list in place? I am inclined to believe that many small business owners are missing out on a lot of business because they do not have a solid business plan. Then there are others who will argue that there really is no need for one, but I believe that is nonsense. If you are going out of town and you have never been there, you need a map or GPS in order to get around. That is what a business plan does for a business. It gives you direction. I am not suggesting that you can not become successful without a business plan; however, having one will allow you to know when you have arrived at your destination.