Am I doing the right thing?Please help a newbie!

[Sparkleberry]

Hi everyone! Im a complete newbie here so I hope you dont mind me gatecrashin your site for some advice! Ok-heres my dilema! Im a level 2 qualified beauty therapist-however chose not to progress to level 3 as I knew I wanted to concentrate on makeup......8 years on Im still loving being a makeup artist however feel I need a new challenge and so decided to look into opening a beauty salon with more of an aesthetic slant to it. I was going in with a friend (non beauty) 50/50. Found an existing salon, but there was another interested party so we put an offer in pretty much straight away.........anyway-my friend has now decided to pull out (which actually is a blessing in disguise as Id come to realise that Im not q sure a partnership is for me!)....so do I go it alone or pull out and find something a bit more 'manageable' for a first timer. To give you an idea, the salon made £9k profit last year, is costing £70k(incl stock and equip) and has considerable outgoings. The premises are in an affluent area and are AMAZING, the potential in it is unbelievable, there is a massive reception area that would easily fit in a nail bar,6 treatment rooms, plus bathand shower rooms staffroom etc split over 2 floors. 3 rooms are not currently in use and need a toal refurb and its just offering normal facials/manicures etc. There are 2 fulltimers plus 2 receptionists. My problem is its an awful lot of money for a biz that made such a small profit and will only just scrape by, if at all, month to month for me as by biz loan has also got to be taken into consideration. I would want to completely redo the decor (although its liveable with) not to mention the refurb on the 3rooms and add new treatments, alongside new promotional material, this is when I think I would really be able to turn it around.......but the new equipment neede for the treatments will cost thousands and I just wont have the extra money to do this..........I can see such the potential for it, but dont see how I can get there?Am I best just pulling out or trying to struggle with it? Its really getting me down I cant sleep worrying? Sorry to ramble on! O and to cap it all off-as its my first salon-Im new to the whole scene so a complete novice:cry:when it comes to the ins and out of business......... Please help me!x

 

[hippy-chick]

Its a lot to take in. You need some business advice, contact your local business link and they will talk to you about available grants.

You may get help with the refurb and any equipment you buy, also website.

Would you consider hiring some of it out so you have a regular income for the time being? You could hire the nail bar out and a room to a beauty or holistic therapist.

 

[Sparkleberry]

Hi HippyChick!Thanks for your reply!Yes Ive already contacted BizLink but their next course in my area isnt for another month and I need to make a decision like yesterday!Also-because its a wealthy area I doubt Id be able to get any help-my o/h also earns a decent slary (which gets gobbled up by the bills!) I think that would go against me being able to get any help too. Yup-my initial thoughts where to get the rooms rented out, botox/teeth whitening etc and there is no nail bar at the mo-Id have to put one but I was going to rent 2 chairs out-1 fulltime 1 part time..........but even with these-Im still not sure Id be able to cover myself until I could afford to get some new equipment in.....which would be waaaaay down the line and until then, I wouldnt be able to move the slaon forwards..........

 

[Susie H]

Hi and welcome to the site.:hug:
Honestly hun?
I would walk away from this one, there are a lot of questions I would ask before making that decision for me, and I've had my own business and run other peoples. It worries me that its such a small profit, and just because its in an affluent area doesn't mean you will get lots of high spenders, most rich people don't tend to splash the cash, its how they stay rich:lol:
But for you, who has never had their own business before, well, its a very big project, needs a lot of funds and time to realise its full potential and I think it could quiet easily overwhelm you, so unless you can find a like minded person to come in with you on this, I would take loads of notes on what you would do if you could, sort of a wish list, put it in a file and keep it for when you reach that point where you want to expand. Meanwhile I would find something as you say, more manageable for a first time venture.

 

[Sparkleberry]

Thanks for your honesty Susie-thats exactly why I posted! I cant make my mind up and need some unbiased opinions! One minute I think yep-I can do this, its a gorgeous salon (despite me wanting to redo it all, its looks lovely as it is, just not me!) and has good potential, the next second I think what the hell am I doing even considering it?As you say-theres such a small profit from the previous year. I stumbled across it, and it was advertised without the stock etc, so the price was a lot lower, which was why I went to view!(the agents were a load of rubbish and said that was incl everything!) and subsequently fell in love! I appreciate your honesty thankyou! Im just worried that I may live to regret it....ho hummmm!!!x

 

[Susie H]

What does you oh think of it? I know its going to be your business and ultimately it has to be your choice but, if you are going to spend most of your waking life involved in this then his input and support are important.

 

[Sparkleberry]

He thinks that I should go for it if its what I want and is of the mindset that you have to speculate to accumulate.....however mehtinks that he hasnt got a clue as to what it would involve!!!x

 

[hippy-chick]

think you've already decided to walk away from it.

there will be other places for you to look at, and as already mentioned, £9k isn't a lot to take if its such a big place in an affluent area.

If you do decide to take it on, hold off doing the other rooms up, hold off making major refurb changes, and try and rent a few tables/rooms out. You could also get into retail, perhaps rent your walls out to artists or jewellery makers.

 

[rouge]

Have you spoken to a business advisor about the whole proposition? Some of them do a free half hour or one hour consultation, and they give good sound advice.

Good luck with whatever you decide.

 

[fanella]

never be influenced by the size of the houses in an area when considering a business in the area. I learned to my detriment when I opened my first salon. Thought I would make a fourtune because it was such an affluent area then discovered that big houses mean big mortgages and very little disposable income.