2008 wasn't a year many people will remember fondly, at least not as far as the economy is concerned. It was undoubtedly an amazing year in many ways, and sets the stage for what may be an equally exciting 2009.  "Crisis" is a word we heard a lot this year, and it is important to remember that in crisis there is opportunity.  Our ISBN members are probably the most business-savvy operators in our industry - whether in day spas, high-end salons or value-priced chains.  The next 12-24 months could be one of the greatest times of opportunity we have seen in many years....maybe ever.

How can this be? In times when many retailers are struggling, the strong get stronger. Weaker competitors (in all industries) will either fade away or cut back operations, leaving market share for the well-run companies that are positioned to take advantage of this opportunity. New entrants will be few and far between...... trying to raise capital or get a loan to open a new (especially start-up) salon or spa is going to be very difficult. 

Fewer competitors means that market share growth is waiting for those willing and able to move forward. Landlords and developers will be much more willing to make a deal...rent rates are coming down, tenant improvement allowances are going up, and vacancies are opening up in centers where none existed six months ago. While newer developments are slowing (or stopping in many markets), vacancies in quality existing centers should more than make up for this. The shopping center trade association (ICSC) projects up to 200,000 spaces will become available next year....and real estate developers are chronically optimistic!  Landlords will be eager to have financially stable tenants with good operating histories to fill those vacancies. Stylist recruiting is another area where there is opportunity.  As weaker operators cut back or go out of business, stylists are looking for the stability and benefits that ISBN members offer. Many lease station operators are re-considering the advantages of working in a positive salon environment with a more stable Client flow. Fewer jobs in other industries will slow the defection of Stylists to Monday-through-Friday 9-to-5 office jobs. Could be a banner year for recruiting and retaining outstanding Stylists!

Challenges?  Of course there will be many, as always.  Yet there is no time in recent memory when the ISBN forum for our members to network and share ideas for controlling costs and growing market share will be more important.  No one can afford to miss the 2009 ISBN Conference to take advantage of the networking opportunities and the mutual positive reinforcement.  Until June, use our website forum to exchange ideas, ask questions of each other, and to learn from each other how we can emerge from this downturn in the economy stronger than ever.  And remember…we are always looking for a few good operators to bolster our membership!  Do a friend a favor and recommend them for ISBN membership!

Thanks to all of you for your support of ISBN and for sharing your wisdom with others.  Collectively we have an amazing  wealth of information....I can't think of a more powerful data base of knowledge and it's available to all of us!  It is an honor for me to serve as your President, and a privilege to serve with the outstanding Board of Trustees you have elected.

Best wishes to all for a prosperous New Year! 

Gordon B. Logan
ISBN President
CEO, Sport Clips