Being business minded....

[kimi1101]

I am having a perticularly rubbish day today.

My boiler has packed in, I can generally fix these sorts of things but its beyond me. My knight in shining armour is not here to fix it/console me. I went to tell my landlords partner, who owns the shop next door (not sure if you all know but the landlord died unexpectedly a few weeks back) and was told it was not her responsibilty or her late partners and I need to sort it myself. Which is fine but why have they been dealing with these things for me for the past 18 months.??

But anyway. Not that I am seriously thinking of selling up but we all have these days of "oh I just want to give up!!!"

I recently had the salon valued (not by a professional valuer but someone who is very experienced in this area) and was very suprosed at what my salon was worth. I thought to myself...for 18 months work and the amount of money I have put into the salon, it has gone up in value a massive amount since then! I thought, are there people who go into business, set it up and sell it when its become an established business?

I don't really know what I'm getting at but if you were looking to make maximum profit in minimum time would this be a wise way to do it?

I'm really just looking to start a discussion. I don't know what I would do if I did sell the salon...I'd be lost! But just looking to see what other people think about maximising the money you can get out of owning a salon - pros and cons of setting up and selling on or hanging in for the long haul and making your millions that way?!

 

[sarahpoppy24]

Hi, I dont have a salon but I can defianatly identify with the just wanting to give it all up, I run a mobile hair and nail business and there are times when things go wrong all at once, i remember when I used to get up and go into work come home and switch off, those days are well and truly over! Have you thaught about in the future owning more than one salon, and making your millions that way :idea:?? I know that with just me working alone I will never be rich because there are only so many hours in the day I can work on my own, especialy with all the things that are unpaid hours you have to do for yourself when you work alone. Maby in the future I would love to have a salon, that could be making money when im not there, but I cant imagine being a boss LOL maby I need to make it happen? xx

 

[SJK]

I've been in the trade for nearly 20 years, and I don't think there is really a get-rich quick scheme around. Doing well takes hard graft and many hours of your own time and effort. It can be a pure slog to get a salon up and running, blood sweat and tears to make it successful.

If you sold, you'd make a profit. What would you do then? You'd have to start again by leasing another little shop, finding a clientelle, hiring staff, promoting your salon... It takes time and effort and you wouldn't be earning any money in that time so the profit you had made selling your current salon would be your living expenses while you set the next one up and so on.

Business is always a gamble, but surely it's better to run a salon, improving customer service and standards all the time, until it's self-sufficient and making you money. Then you can (if you want) open a second place. Eventually, this will become self-sufficient and generate you a bit more money. When you want to retire, then you can sell up and there's your nest egg.

 

[wonderwoman]

:hug: I would honestly say stick with it, hard work in salons normally pay off after around 3 years, opening up in the recession isnt a good time for anyone, but you can perserve and become stronger. The amount of problems ive suffered over the last 2 weeks is hair pulling but i see the end rewards...being my own boss.

Dont give up, the best way i found for myself was to bulk buy, put money back into the salon, tweak the prices, give staff incentives, create time friendly treatments, at effective prices, and ive been crazy busy.

If you've looked at your place being valued its always great as the prices are going to rise again soon, i brought my place when the recession dip happened and got 25k off the asking price! I invested in a property when i was 18 now its worth triple way i paid. But i havent sold it yet, i was waiting for the prices to rise again.

I see where your coming from. in the sense selling up or moving location. I think buiness enterprenual wise i would get the established buisness for a couple of years to show that it is a busy location etc. If you were to pack it in, ppl would come to their own assumptions thinking it wasnt busy etc. if you were to sell it, just think how you'd have to set up again, and would you invest the same amount iykwim or would you find it easier? xoxo

 

[persianista]

I think it depends on what else you want to do. If you wanted to travel/ retire/ have a baby, I would say sell while the goings good. If you just end up having to get a job or building another salon, then it is best to stay with what you have. To earn a lot of money you have to stay in one place and build a mega clientele, and have staff that do the same.

 

[Verve Designs]

"are there people who go into business, set it up and sell it when its become an established business?"

Absolutely- one of my best friends does that- and he's a (paper) millionaire.

He doesnt even know anything about the businesses hes running- he's just astute at seeing gaps in the market and capitalising on them. He's owned printers, salons, an estate agency- allsorts.

However- it's not for me.

My priority isn't getting mega-rich. Its to enjoy what I do for work (I'd be messing about with digital art anyway even if I wasn't a designer), because I've worked for "The Man" and loathed every second of it. I enjoy working at my own pace and being in control of my own destiny- I could easily sell any of my three businesses- make a load of money and then move on......but move onto what? and would I be happier?

When I have crappy days and everything seems to be going wrong, it's easy to take it out on having your own business and its a good thing to beat yourself up with. Being someone who was made redundent 5 times in my early 20's, I know having some modicum of control over my future is a damn good thing that I shouldnt under-estimate.

Chin up!

 

[femmefan]

Sometimes it's the really small problems that catch us out. For me this week it was my 17 year old Christmas candle lights which refused to work after having already tested them before fixing in place. A yearly tradition gone with a faulty connection seemed insurmountable for a few hours lol

This time of year is very stressful and it sounds like you've had extra problems outside of your control so try to put this new breakdown in perspective. Keep going till the new year and see how you feel about it then.

 

[vitality]

Many entrepreneurs make a business out of starting,gorwing then selling their businesses.
These people have strong business acumen and entreprenerial prospects from the beginning rather than gaining experience in a trade and then going self employed for job satisfaction and extra money. It depends on what you want to do with your future, you could open several salons with effectual branding and an honorable reputation and make a good profit if successful. As already stated if u had other plans or ideas for when you sell up then it could be highly beneficial, its primarily your decision on your career path. Hope this helps

 

[waxcetera]

I think there are a lot of mountains made out of molehills at this time of year and it can get you really down and despondant.

I recently went mobile, got a few clients, that does me at the moment, but I want to expand, pass my manicure course (currently doing natural nails and extensions), I've 2 warden aided blocks waiting for me to qualify.

I've not worked for 12 years, having 4 kids. One of these is special needs and things often feel unsurmountable for me.

I've finally found something I have a passion for and I'm good at. I do it while the kids are at school, and it suits me just fine. I've saved up enough money for a cnd conversion and to buy the whole shellac system, plus other items, I'm rapidly running out of.....then christmas came........ I was talked into using that money on the promise I would have it back by now, I haven't, I can't find it from anywhere either. Things have come to a halt. I've managed to book my course, but thats it. I'm absolutely gutted and mad as hell at the same time............but it will not stop me.

You can overcome most things, once you've picked yourself up, dusted yourself off and prioritised.

Happy New Year and good luck for 2011 xxxxxx

 

[Kim Lawless]

I went to tell my landlords partner, who owns the shop next door (not sure if you all know but the landlord died unexpectedly a few weeks back) and was told it was not her responsibilty or her late partners and I need to sort it myself.

That doesn't sound right. Either they are taking over being landlords and are therefore responsible for everything the landlord was......or you are just squatting in the shop. Are they still collecting rent? Of course they are! So you need to seek legal advice. Get a price first as you don't want a massive bill for that too.

I recently had the salon valued (not by a professional valuer but someone who is very experienced in this area) and was very suprosed at what my salon was worth. I thought to myself...for 18 months work and the amount of money I have put into the salon, it has gone up in value a massive amount since then! I thought, are there people who go into business, set it up and sell it when its become an established business?

I don't really know what I'm getting at but if you were looking to make maximum profit in minimum time would this be a wise way to do it?

We spoke about this when we met Kim and you need to be more business minded. Sounds to me as though you're not charging enough for your chair rental and you seem to be doing all the donkey work.

I'm really just looking to start a discussion. I don't know what I would do if I did sell the salon...I'd be lost! But just looking to see what other people think about maximising the money you can get out of owning a salon - pros and cons of setting up and selling on or hanging in for the long haul and making your millions that way?!

It took me many many years for the penny to drop that I work like a dog to pay the bills and have a nice life. Yes, I'm still generous to people (it's in my nature), however, I now weigh up the pro's and cons of whether I should work away etc. By that, I add up all my outlay, loss of earning by being away from my waxing room and of course the personal inconvenience, ie dog minder etc.

I'm not saying that you should be ruthless, but if I were you Kim, I would stay put as you are unique and very talented and people buy the person as well as the service they're offering.

How about this:-

1. Review your chair rental and exactly what they get for their rent or %. You're the one with the overheads and worry so that needs to be reflected in what you charge.

2. Sort the landlord out immediately and don't be soft. They need you as much as you need them.

3. Stop carrying your staff and let them work as hard as you do so that you can spend some time on planning for the business instead of cutting hair to help them out.

Call me if you want to toss things over.

Don't give up!!! Good luck. xx

 

[kimi1101]

Thank you everyone. New year new start so I'm reviewing the way I work.

thanks again for the advice x