Two Hamilton businesses have turned the current economic downturn to their advantage — by expanding their business to include new products and by offering their clients a unique incentive to return.

Darren Booth from Heel Quick and The Booth, both in the Washington Mall, and Simon Horrell, the owner of Tangles hair salon on Reid Street have put a new spin on the old saying "When life hands you lemons, make lemonade".

The one thing few women are willing to do without is their regular visit to the hair salon. Which is why a year ago, as the rest of the world slipped into a recession, Mr. Horrell decided to come up with a unique way to both reward his clients and ensure their return.

He launched his unique "point system" at Tangles. For every service clients earned a number of points, from 25 points for a cut and blow to 50 points for colour, foil, cut and a blow dry. Once they earn 250 points, clients received a $20 gift certificate towards their next service. And it's renewable.

Unfortunately hair and beauty salons have felt the pinch: "I think woman are extending their next appointment by a few weeks longer than they normally would, but we are still relatively busy and I still believe strongly in the service side of things. I am still trying to perfect that because when people come in we want them to come back."

The point system plays a big part of this. "What I've tried to do is build customer loyalty. The point system is a form of giving back to clients who spend a lot of money with us."

Mr. Horrell has been in business in Bermuda for almost 40 years. "I've stuck with what I'm good at," he says with a broad smile.

As for expanding the business to include other beauty services, Mr. Horrell is reluctant. "If I had a bit more space I would consider investing the money by expanding, but the problem is staff. Especially if you have to bring people in, it can be very expensive."

Tangles is known to support local charities and this is one area, despite the financial pinch, that Mr. Horrell is not prepared to cut back on.

"I do believe it's good to give something back to the community," he stresses, "even if it's not monetary and a gift certificate for a cut and blow-dry is worth about $95."

Across the street in the Washington Mall, Darren Booth grins proudly as he shows off his new line of DC shoes, Helly Hansen gear and clothing and accessories from brands like Puma, Dakine and Allyance at his new business venture, aptly named The Booth — right next door to his business Heel Quick.

Mr. Booth came to Bermuda 22 years ago to work as a shoe repairer and eight years later ended up buying the business, called Heel Sew Quick at the time, from his former employer.

Those looking for a way to get ahead in business need only take note of Mr. Booth's strategy — start small and grow within your means. Over the years he branched out the business to include luggage and bags.

"You don't want to borrow lots of money and do everything on credit, but instead build the business up slowly and steadily," he advises.

When the opportunity presented itself six months ago to expand the business into a neighbouring premises, he leapt at the chance.

"Business has been pretty good because our prices are reasonable, so it has been steady," he explains. "The main thing is I try and sell stuff that is different to what other places offer and my prices are on par with those in the US."

In fact business is so good he feels he is running out of space and plans to expand his business, or businesses rather, to a new shop in the Washington Mall III development later this year.

He has continued to come up with new and innovative ways to combat the recession, such as offering 20 percent off Helly Hansen rain gear — indefinitely.

He also believes in keeping Bermudian money on the Rock: "Look at the prices on my luggage. I go online and see what Macy's is charging for the same luggage and I lower my price so it's cheaper to buy it here. That way you don't have to shop abroad, you can continue buying local."

As for the risk of offering a new line of products during a recession, Mr. Booth smiles and adds: "It's all about taking the risk and going for what you like and think other people will like, and what will sell well."

He says the brands he stocks, like DC shoes, have a good following, particularly among Bermuda's youth.