What did it cost you to start in a rented place?

[redsadie]

Hi guys

I'm currently working from home but have seen a lovely little shop just off the high street where I live. I've had a peek through the windows and it seems to be the perfect size for what I need at the moment as I'm wanting to spread my wings (although want to train for CND eventually, so would then need larger premises). The rent is £500 pcm with 3 months up front, which I would try to negotiate anyway, and I would need to get the signs changed as obviously the sign that's there is nothing to do with nails but apart from that, I could pretty much move in straight away (obviously pending a proper look around) as I have my table, chairs, equipment etc anyway.

My question to you lovely Geeks is, how much did it cost you to start up in a rented place and what did you spend the money on? Either a room, or a shop.

Thanks. xx

 

[angelina221]

I spent a lot-lol.
My salon does have 9 rooms though and i spent 6 months refurbishing.
My rent is 1/6th of my outgoings. On top of rent there are; rates, water, telephone, gas, electric, solicitors fees, accountant fees, advertising, licences, insurance, stock, signage etc....
Small things add up too like tea, coffee, milk, toilet rolls, magazines, laundry etc...
I think if you have taken everything into consideration before you start and you think you can make a profit then go for it but you need to make sure you have enough money to see you through your first tough months.
Most businesses fail in the first year due to lack of funds so it's imperative to have some money behind you.
hth

 

[redsadie]

Thanks Angelina

I have a spreadsheet with all my workings out on and am trying to build through a proper business plan and a profit & loss sheet too

Anyone else?

xx

 

[redsadie]

Also, I meant to ask, what is a rough estimated cost for a solicitor?

Thanks :hug:. xx

 

[leonnib]

my rent is abot the same as yours which isnt huge compared to some. but as angelina said when you add rates, water, etc does add up. you should be able to get small business discount on your business rates which is a fair bit off.

the main thing when i started was i did get some things i didnt have to really which i only realized after.

but one thing that has helped is i only get stock i need..
i use a certain percentage of my earnings weekly to build up my hair colour stock or nail polish etc.
rather then having a load of things in the beginning i couldnt afford to buy and i knew it would be slow anyway.

 

[redsadie]

my rent is abot the same as yours which isnt huge compared to some. but as angelina said when you add rates, water, etc does add up. you should be able to get small business discount on your business rates which is a fair bit off.

So how would I go about getting a discount on the rates? Go to the council once I've signed? If you don't mind me asking, how much are your water, lekki and gas bills (if you have gas)?

the main thing when i started was i did get some things i didnt have to really which i only realized after.

I have realised this already, although there is soooo much I 'need', lol!

but one thing that has helped is i only get stock i need..
i use a certain percentage of my earnings weekly to build up my hair colour stock or nail polish etc.
rather then having a load of things in the beginning i couldnt afford to buy and i knew it would be slow anyway.

That is a good idea :green:

Thanks for your input :hug:

 

[1999judy]

Mine was £30 a week...I did offers to make sure I made a profit and think myself very lucky to have had the opportunity to do it and gain the experience.

 

[angelina221]

Apply to the council for small business rate relief.
I got 50% off for the first 5 years so it's worth applying for.
Just ring the council up and they will help you.

 

[redsadie]

Thanks girls

1999judy - is that £30 pw for your lekki, water and gas?

Sarah. xx

 

[leonnib]

you apply to the council and its a very easy process.
youd be able to find out your rates from ringing your council to get a rough idea what it is before the discount.

dont know how much my water is yet not yet had my quarterly bill been there just coming up to 3 months im expecting it any minute now:Scared:

luckily i dont have gas (one less bill) but my electric is £18 a month. my rates is about £60-£70 a month.

i have business rates for my electric which i think most suppliers to (although not 100% sure)

but i only have a little salon though...

 

[1999judy]

Thanks girls

1999judy - is that £30 pw for your lekki, water and gas?

Sarah. xx

It covered everything and gave me all the chances I needed to get further x

 

[angelina221]

you apply to the council and its a very easy process.
youd be able to find out your rates from ringing your council to get a rough idea what it is before the discount.

dont know how much my water is yet not yet had my quarterly bill been there just coming up to 3 months im expecting it any minute now:Scared:

luckily i dont have gas (one less bill) but my electric is £18 a month. my rates is about £60-£70 a month.

i have business rates for my electric which i think most suppliers to (although not 100% sure)

but i only have a little salon though...

£18 a month!! Wish mine was-lol.
Have just had my quaterly bill and mine works out at £150 a month!
I only use gas in the winter. My rates with my relief are £100 a month. I think my last water bill was around the £80 mark.
You need to open up a separate account and put a bit away each week to pay the tax man otherwise it might come as a shock when you get the bill!

 

[redsadie]

Thanks again girls :hug:

This is how it is presented on the website:

A Lock Up Shop With Main Retail Or Preparation Area 30`9 max x 11`0. Rear Lobby, Cloakroom, Parking Area To Rear, Side Trading Area To The Main High Street, Available Immediately.

RETAIL AREA - 30`9 (9.37m) Max x 11`0 (3.35m)
Currently with counter area, tiled floor, part wall tiling.

CURRENTLY THERE IS A PREPARATION AREA
Base units and worksurface, tiling, extractor fan, set ceiling.

SMALL OFFICE


REAR LOBBY
PVCu double glazed French doors, tiled floor, door to:

LOBBY
W.C. off.

W.C.
W.C., corner hand basin, tiled splashbacks.

OUTSIDE
PARKING AREA to the rear of the shop.

RENT
£6,000 per annum, £500 per a calendar month.
Three months rent to be paid in advance as a deposit. The tenant will be responsible for the Business Rates and 25% of the Buildings Insurance approx £150.

RATEABLE VALUE
£4,550

I have had a look through the windows and it looks great. It used to be an organic soup/smoothie shop and I could put up a stud wall for my waxing and tanning and have enough room to put my nail station at the front.

I have to get some finances sorted, so it may slip through my fingers, but there are a couple of other lock up shops in our precinct that I could go for, although they don't have a kitchen and are slightly smaller.

I'm going to contact the estate agent and see if I can take a better look and also see if I can negotiate a sliding scale rent, you don't ask if you don't get

Thanks again, all your info has been a real help :hug:

If anyone else would like to let me know what they paid that would be great :green:

xx

 

[Cathie!]

My rent was £110 per week, electric, £54 per monh, rates £119 per month, water £15 per month, phone £ 15 per month and that's just for starters.... 2 nail stations, 1 beauty room and spray tan room.

I don't want to rain on your parade, but really think seriously about doing it if it's you on your own without excellent employees or renters. xxx

 

[redsadie]

My rent was £110 per week, electric, £54 per monh, rates £119 per month, water £15 per month, phone £ 15 per month and that's just for starters.... 2 nail stations, 1 beauty room and spray tan room.

I don't want to rain on your parade, but really think seriously about doing it if it's you on your own without excellent employees or renters. xxx

Thanks for that Cathie. I am doing a profit and loss spreadsheet at the moment and tbh, it's looking like I'm going to have to be open 10 days a week!

I'm going to take a look still though, like I said, I'll try to negotiate rent and see if they know anything about rate relief.

Thanks for your rain :hug:

xx

 

[Cathie!]

The rates at £119 per month included the small business relief, it about halved it!

 

[persianista]

my lekkie around 250 pm per salon!! Rates are 350 in one shop and 560 in the other. Water is around 30 per month per shop. Wish I had overheads like you lot!!

 

[redsadie]

The rates at £119 per month included the small business relief, it about halved it!

Oh! :idea: Lightbulb moment :green:

Persianista you must have large shops!! :lol:

xx

 

[persianista]

yup! one is 3 floors with 2 hair salons and 5 beauty rooms. Costs a fortune to run. It amazes me how low other peoples overheads are on here

 

[leonnib]

yup! one is 3 floors with 2 hair salons and 5 beauty rooms. Costs a fortune to run. It amazes me how low other peoples overheads are on here

my salon is tiny compared to yours lol... your water bill isnt huge though so i wonder how much mine will be...