I am a bit confused about the ownership bit but so long as you understand who owns it fine.
What i would do to start with is decide do you really want the hair salon or are you only doing it to prevent you having to move now ? You may decide that if yu have the salon then you won't have to move in the future and that is a protection as the same may happen elsewhere again. So decide are you doing it for the right reasons.
If you did move yes there would be a but of upheaval but you have gained all your current customers so if you moved locally surely 90% of them would come with you and so extra advertising would only be about getting new customers and also you may find yourself in a better location/room etc.
Which brings me on to the next point is the location/salon where you are now a good location etc or do you think you may get a better location by moving with more passing trade etc.
If you do think that staying and trying to take the hair salon over is the best move for you, then understand what you woudl be letting yourself in for. Do you know who actually owns the building who woudl actually be your landlord ? If from what you say is true about the lease is due to run out then you shouldn't have to pay any premium for the lease only some upfront rent. If you are talking to the current salon owners ( I am assuming these are different to the building owners) then if they are asking for £8,000 for fixtures and fittings remember - what will they do with them if you don't buy them ? They are virtually worthless second hand so don't be forced to pay an unrealistic price.
Next don't worry about not knowing about hairdressing - I have two salons and i knew nothing about it when i bought them and am not a trained hairdresser, just a pure businessman. if the staff are any good they woudl help you through and you know the basics from running your own beauty business. What you coudl do is approach the girl that left to come back as manager ?
You mention that the staff are really nice indicating that there are a few of them - does that mean it is overstaffed and there are some savings to be had by reducing the staff levels.
Next understand all the implications - Rent levels you say this is £10,000 but if the lease is about to run out will this increase ? Business rates - you do a search to find out what the business rates are - go to www.businesslink.co.uk or do a search on google for 'my business rates'. This will tell you the ratable value fo the property, if the rateable value is below £10,000, then your rates woudl be approx 25% of this figure - if it is more than £10,000 then our rates woudl be about 50% of the figure.
Now also remember that you woudln't now need to pay your beauty rent so that would go towards these costs. However, you may find that you now are doing more business, which would probably take you above the VAT threshold - i am assumin you are below it now - this means you woudl have to charge VAT on your beauty treatments which coudl affect the profits there, as you probably wouldn't be able to put your prices up. The salon may also not be VAT registered but by putting your two businesses together woudl also take that over the VAT threshold. There is a way around this as you are already trading and you coudl potentially run the two as seperate businesses.
1. Do you know the turnover of the salon ?
2. How many staff are there - and how many produce revenue i.e. do cuts
3. Coudl the salon be improved to make the takings higher
4. Could you add more services etc ?
5. is the business up for sale - it seems strange just to walk away.
Lots to think about but they are the things that you need to factor in if you want to be successful.
You also need to consider that if you are to walk away what is in your contract regarding upfront rent, notice periods etc - does it also make any reference to the landlords and tenants act ? It may be you have a right to stay where you and the salon owners have acted against their lease and you can happily stay there until your contract ends. It shoudl refer to you being in the salon under licence not as 'renting or leasing the room' this is a specialist area but i have had some advice from my solicitors regarding this in the past so have a basic knowledge.
My main salon is in Burton, which is not a million miles from you and i am actullay looking for someone who can do reiki holistic treatments etc to either rent a room or be an employee - do you happen to know anyone ?
Hi. I notice that you are qualified in Reiki and just wondered where in cheshire you are based as I would love to book a reiki treatment. I am also very interested in learning reiki and just wondered if you could recommend anyone. I am based in Cheadle Hulme.
Hi I was reading a very old thread u put about a beauty show in cheltenham last October, is this a yearly thing? could you give me a bit more info if you dont mind as im new to this site and training as a nail tech, my email is email@example.com many thanks