Moving to bigger premises

[whitesatin]

I opened my beauty salon just over two years ago and now feel it's time to move to bigger premises...but I'm scared! The new premises will have 4 treatment rooms, a spray tan room, relaxation room and ample space in reception for three nail desks. At the moment I have one treatment room and a tiny room that I use for eyelash treatments with two nail desks in the front. I currently employ two therapists, one full time and one part time so I will need to increase the part time therapists hours and employ another full time therapist or possibly take on an apprentice. The rent on the bigger premises is just over double and with the additional wages cost and decoration and additional furniture and equipment it's not going to be cheap. I have been very lucky in that my current salon is very busy and I have only recently started to reap the awards, so to put myself back to square one again financially scares me. The premises are literally 50 yArds away so I know that I won't lose any clients. Has anyone else moved to larger premises. I'd be really interested to hear your experiences. Thanks. X

 

[Jemmasesthetics]

Hi Whitesatin, I'm an aesthetic practitioner and have just don't the opposite and swapped from working for a big company to going independent and downsizing so unfortunately can't advise. Good luck though I hope it all works out for you xxx

 

[squidgernetball]

That is a lot bigger. We moved/expanded from our small part of a barn to take over the whole barn. The upsides are that I manage to generate quite a bit of money by renting out 2 rooms which I'm now going to be using again as we have got so busy. You know how much your business can generate and only you can decide if it's doable. My rent increased considerably but my landlord was very supportive and gave me a low introductory amount.

I wouldn't rush into increasing anyone's hours unless you can really justify it. Just like you, I remember having money coming in and thinking "I've got nothing to pay out" and then we moved lol.

Good luck with it all. I've never regretted growing my business. We went vat registered which was a bit of a blow, but retail is high so that really helps.

Vic x

 

[whitesatin]

Hi Whitesatin, I'm an aesthetic practitioner and have just don't the opposite and swapped from working for a big company to going independent and downsizing so unfortunately can't advise. Good luck though I hope it all works out for you xxx

Thank you, and good luck to you too xx

 

[whitesatin]

That is a lot bigger. We moved/expanded from our small part of a barn to take over the whole barn. The upsides are that I manage to generate quite a bit of money by renting out 2 rooms which I'm now going to be using again as we have got so busy. You know how much your business can generate and only you can decide if it's doable. My rent increased considerably but my landlord was very supportive and gave me a low introductory amount.

I wouldn't rush into increasing anyone's hours unless you can really justify it. Just like you, I remember having money coming in and thinking "I've got nothing to pay out" and then we moved lol.

Good luck with it all. I've never regretted growing my business. We went vat registered which was a bit of a blow, but retail is high so that really helps.

Vic x

Once again, thanks for your advice Vic . I have a couple of professionals that are interested in working out of the salon, not by renting space or a room but by working on a commission basis. What's making the decision more difficult is that I am tied into the lease on my current salon until October so would end up paying two lots of rent for 8 months. Lots to think about! I appreciate your reply xx

 

[squidgernetball]

I'll be honest, that would really make me hesitate. If you can definitely afford it, it may be worth it, but do take a good look at what you're doing and why. I know a salon recently that was moving to bigger premises. It was going to be all singing all dancing. She got caught up in the excitement of it all and every problem, she threw money at. Eventually she took a step back and realised how much more it would cost if she carried on. She pulled out and stayed where she is. Sometimes, something like this can make you very grateful for what you have.

When we expanded, I suddenly became liable for rates and our heating bill is really high.

If I can help, just shout x

 

[CFBS]

Years ago I expanded into bigger premises and added staff. However I didn't make more money for myself overall.
Wages are much higher now than back then but treatment prices haven't risen due to the number of salons around now
So it's difficult to make a profit for yourself.

Think carefully before you jump, maybe give it a couple more years? If you are fully booked week in week out then raise your prices for the time being and get some savings behind you.

 

[jbr]

My advice would be to try and put together a financial projection of how much business you think you could do, and the cost of staff, materials, equipment etc. Then you can put together a cash flow forecast to see how much it will cost. It's a pain in the backside to do, but then you can see how much you need to do to make a profit and if it's viable to expand. I can now use my spreadsheet to see what the returns would be for any new treatment and how many we need to do per month to make it worthwhile. A bigger premises doesn't always equal a bigger profit margin!

 

[whitesatin]

I really do appreciate all of your advice and thank you for taking time out to reply. I've decided against it for now, think Ill just enjoy a wage for a change!! xx hubby (financial director/builder/decorator) relieved too lol x