Potentially great business opportunity but I'm pregnant, advice please!

[curly girl]

Hi Ladies/gents,
Haven't posted in a little while. I know nobody can make my decision for me but after a bit of advice...
Ive had my own small ground floor beauty salon for 3 years. My contract is due to expire very shortly but there's a great deal of chance that I could remain at this premises long term. Business is great and I'm actually turning business away at the moment.
However the opportunity has risen for me to take on a premises that is more presentable and a lot larger. It's literally opposite my salon and the same price as I'm paying now. The building is going up for sale but I would have a years contract as a sitting tenant even if the property sold.
My dilemma is whether to take the better salon and take a risk on whether the person who buys would want me out when my contract ends or to remain in my current salon and play it safe. Although my salon is fit for purpose, due to damp issues, size and outside toilet facilities it's not ideal.
On top of this I've just found out I'm pregnant (after years of ttc) and I'm worried I'm biting off more than I can chew. Id be looking to take someone on part time regardless to manage my clients whilst I take a few weeks out and to help manage my client base long term.
Sorry for so much info but all my dreams are coming true at once and I'd be grateful for some advice from my like minded peers

 

[Tan Eraser]

Hi,

From what you've said it sounds very high risk to me. Is the new premises already a salon or is it going to need fitted out and a bit of investment?

Two questions for you:

1) Is there any way you can buy the property?

2) Can you not wait until it is sold and then see what the position is? Or are they actively seeking a tenant at present?

Jamie

 

[curly girl]

Hi Jamie,

From what you've said it sounds very high risk to me. Is the new premises already a salon or is it going to need fitted out and a bit of investment?

Two questions for you:

1) Is there any way you can buy the property?

2) Can you not wait until it is sold and then see what the position is? Or are they actively seeking a tenant at present?

Jamie

Hi Jamie,

Thanks for replying. I'd love to buy the property but after a little research I know this wouldn't be an option because id have hardly any deposit to put down. The premises is currently a record shop so would need a full refit.
The landlord I currently rent from wants to increase the rent each year unless I sign a long term contract and frankly I pay a little over the odds for the premises although I do like the location. Feel a bit stuck between a rock and a hard place at the moment!

 

[curly girl]

Hi Jamie,

Hi Jamie,

Thanks for replying. I'd love to buy the property but after a little research I know this wouldn't be an option because id have hardly any deposit to put down. The premises is currently a record shop so would need a full refit.
The landlord I currently rent from wants to increase the rent each year unless I sign a long term contract and frankly I pay a little over the odds for the premises although I do like the location. Feel a bit stuck between a rock and a hard place at the moment!

Also the shop is up for rent and sale at the moment. The local estate agent has advised him to try and rent it out while trying to sell as commercial property can be hard to sell. The premises also has the opportunity to be turned back into a house (it's original dwelling) if the buyer so wishes.

 

[BannerPenguin]

I'd negotiate a long term contract for the right price where you are. If business is good, why rock the boat? You'll spend a small fortune on a refit as if you do that on somewhere they could literally boot you out at anytime and sell it as a fully fitted salon commercial property (much more appealing to the market).

 

[Tan Eraser]

Personally I would strongly advise against renting the new premises as a sitting tenant. It may be an ideal location but I think your heart might be ruling your head at the moment. Imagine the scenario where you go in set up your perfect salon, grow your customer base and a year later someone takes it all away from you. It's really not worth the risk.

If your heart is set on it you need to try and negotiate different terms which I think will be difficult under the circumstances.

 

[curly girl]

Thanks for the great advice guys. I'll take it all on board. As I can move a lot of my lighting, furniture etc over the refit wouldn't cost a great deal actually. Plus with builders as family I could call in a few favours. The property already has a good layout and was decorated right through just over a year ago. My premises I'm in now would need redecoration soon anyway as my paint is crumbling off the walls with damp. My toilet is more of an outside shed in the garden which is ridiculous for both me and my clients. Despite my landlord saying he would fix this for over a year there are no signs of the work starting. The terms were only run past me by the estate agent today so I think I'll do my best to negotiate a fair deal for myself and then weigh up my options. Luckily I know the estate agent quite well so if there's room for a better deal I think he will do his best to help me out. This decision would be so much easier with a crystal ball!

 

[Gina Ballerina]

Even if this is a great opportunity is it worth the extra stress at this time in your life? Xx

 

[hazelb]

So refitting a new salon, unsure if you will be able to stay for more than a year...all about the time the baby is due? wow!

You could investigate the possibility of a longer term lease on the new premises rather than just moving in for a year!!! at least that way some of the pressure will be off when the baby is around.

Or you could use the fact you are possibly moving to negotiate a better rent with your current landlord - you may find a smaller premises works as you can have more time off.

 

[curly girl]

So refitting a new salon, unsure if you will be able to stay for more than a year...all about the time the baby is due? wow!

You could investigate the possibility of a longer term lease on the new premises rather than just moving in for a year!!! at least that way some of the pressure will be off when the baby is around.

Or you could use the fact you are possibly moving to negotiate a better rent with your current landlord - you may find a smaller premises works as you can have more time off.

I know right, talk about ambitious! Cost wise, larger or smaller the overheads are gonna be around the same so effectively I would get more for my money. I'm pretty sure the shop owner is open for negotiation though as the price he originally quoted me has reduced since I said it wasn't worth the risk to me. I think my best bet is to try and negotiate a longer contract for myself. If not then it may be best to stay put.