£39,700 too much?

[sabrina92]

Is this too much to pay for rent,rates and insurance?

Found a lovely property 1772ft and going to view next week but wanted opinions on the price.

Thanks in advance

 

[Curlywurly82]

it depends on the location, condition, size.

my boss for my day job was recently looking for a salon for his girlfriend and the one they found and liked was £36k a year in a small run down town. It was fairly big though and was on the high street.

 

[Steph86]

As said above depends on many things, there is a lovely already established salon nr me for sale 40k. No parking but in a nice village.

Where is the salon?
Parking?
Established business? Staff?
Salon already to go?
How many treatment rooms?
What would u be able to offer in the space?
Would u be able to make some money back renting any rooms out? Or a nail bar?
What are the local salons offering? And at what price are the treatments u would be offering? Ie High? Low? Are there even any salons nr by? Are they busy? Can u offer more selection of treatments than them?

Good luck xx

 

[lilacm]

No, that's less than we pay and a lot bigger so it really depends on location. For city centre that would be very good for the price if it has good footfall and is in good condition.

 

[Sarah-Jean]

Seems a little high, but then I guess it depends on where you are, where it is and your business plan, current client base, available funds/savings... Etc. Etc.

Whatever you do, negotiate! I negotiated 3 months rent free, with a further 3 months rent free later on down the line....

 

[sabrina92]

Thanks for your replies, Its city centre, theres some parking out back and a multi storey car park 2 mins away.
Going to view tomorrow now so will keep you informed of the info i get.

 

[bonderella]

Good Luck!!!!!
Would love to hear how you get on as I will be going into business next summer so it will be great to talk about all the set up trials and tribulations but also the shear fabbiness of finally achieving your own salon:lol:

 

[Layrex9]

At first glance seems quite a bit to cover, but, what do you expect to get in return for it?

Knock out a business plan (be a little pessimistic when doing it) and see if it will generate a decent revenue for you.

A rent of this magnitude will warrant you employing or rent space; unless you are doing higher end treatments at £40+ a pop. Just bear in mind that the rent/rates/insurance is £127/day, based on the place being open 6 days a week, 52 weeks a year.

 

[sabrina92]

So I went to view today, loved the place a little bit big maybe but i was really happy. Then the agent pretty much told me know matter how much i offer them they want the space to be a coffee shop!! :grr:
Before arranging the viewing I had asked loads of questions, explained what i wanted the space for etc so dont understand why they let me view it if they didnt want me to have it.
On a slightly better note he showed me another unit in the same place, its smaller and alot cheaper but kind of an odd layout.

Would like to hear anyones opinions
Thanks geeks

 

[sabrina92]

the new unit is 1004ft for £16700

 

[Redduck]

Can you explain the layout of the new place? If the original place is going to be a coffee shop that could be good for your business. Annoying they let you see it when they had no intension of letting you rent though.

 

[sabrina92]

Well its on two floors, ground and basement levels.
Ground floor is the entrance with massive windows great for display, this floor is a giant L shape because of the stairs down to main area. Thinking of using as reception.
Then you go down stairs the staircase is bright and open thinking of putting certificates on the walls here.
Then its the basement level which would be main salon, room for tanning area, manicure area and two treatment rooms (I think need to check measurements) the flooring is already really good and considering theres no windows its bright. Theres a loo, storage for stock and room for washer dryer, only thing is no staff room :/
I do like it and can sorta picture how it would look its just not your typical salon layout but that could be a good thing.
There's also a lift for less abled clients.

Sent from my GT-I5700 using SalonGeek

 

[Redduck]

It sounds fabulous! If the ground floor is big enough is their an area there you could make into a staff room?

 

[Sarah-Jean]

The second unit sounds like a much better proposition personally. Much more manageable rent wise and I actually think it's quite useful to have hair and beauty on separate levels to reduce the noise distractions, and you can't ask for more than a lift for your clients who find stairs and challenge!!!

 

[sabrina92]

Yes rent is much more realistic, and the layout could be a unique quirk.
really isnt space for staff room but like i said theres going to be a coffee shop in the same arcade so can go there for breaks and they'll be room for bags and coats etc.
The unit is also opposite a bridal shop which is fab and is also near some great shops (vivienne westwood, ted baker etc)
Think this could be a great opportunity

 

[Jen889]

Hi,

the second unit sounds lovely! it sounds like it would be the perfect place. think about it (if you haven't already) you could work with the coffee shop next door when it opens for promoting and the bridal shop! oh i hope they don't have anyone working with them spa wise. you could possibly collaborate with the owner and set up some advertising with them, get most brides BEFORE they even step foot in another salon!

i wish you the best of luck!!

 

[Gina Ballerina]

I thought you has to provide somewhere for staff to have breaks? I could be wrong tho, will be easy for you to check up on.

I think the layout sounds great though.

Good luck xx

 

[Curlywurly82]

the second unit sounds a good proposition. don't forget to check what it's rateable value is and what the rates are so that you can factor them in when working out a business plan.

Also if the layout is not exactly as desired maybe ask someone for some costings to change things to how you would like them.

 

[sabrina92]

Jen thankyou
Gina thanks for bringing it to my attention ill look into it.
Curly the £16700 includes rent, rates and service charges.