It took a real leap of faith for anyone to open a business last October when the economy was beginning its meltdown. But that's what Tracey Sloan did, and she thinks it's one of the best moves she's ever made.

Although she was working 20 hours a week at a high end salon, Sloan admits she wasn't making ends meet. She decided to make the most of her 28 years of experience and opened Traces Salon, a three-chair establishment. As the economy began to tank last year, she saw the need for lower-priced services.

"There are low end and high end salons, but nothing in the middle in this area," Sloan said. "I felt that if I could lower the price of my haircuts by 20 percent, and offer a good $32 haircut, I could make up the difference in quantity."

After four months, Sloan found two other stylists to rent booth space at her place.

Instead of operating like many salons do, where the owner takes a commission on every service offered, the stylists at Traces lease space from Sloan, which helps her make her rent payment.

"Stylists are realizing they can make so much more money by renting booth space," Sloan said. "It's what I was looking for before I decided to open my own salon."

In addition to the affordable cuts and color, Sloan also offers teen prices of $20 a cut.

"I'm a single mom and I know it's tough," she said. "In my career I've done so many color corrections because parents have colored their kids hair and messed up. Why not do it right from the start?"

Although she is a color specialist, Sloan thinks education is among the most important services she provides her clients.

"I don't want customers to leave here without knowing how to style their hair," she said. "I don't push products, but I'll tell them what I use and give them the brush to show them how to do it themselves."

Through Craig's List, Sloan was able to buy the fixtures she needed for only $2,000. After sinking another $4,000 into the former office space, she realized her dreams.

"I think the state of the economy really helped me," she said. "Everyone is looking for a bargain. I'd say all but about 5 percent of my customers followed me here, and I've gotten so many new clients since I opened. I'm truly blessed. I never dreamed everything could work out so well for me here."

Traces Salon

Location: 61 Indiana, Suite B, Valparaiso

Phone: (219) 548-7223

Owner: Tracey Sloan

When opened: October 2008

Number of employees: One

Type of business: Hair salon