Quantcast

Any business owners willing to advise a newbie?

SalonGeek

Help Support SalonGeek:

Lady_Stardust

Well-Known Member
Joined
Jul 23, 2008
Messages
70
Reaction score
0
Location
Aberdeenshire
Hi all,

I am in very very early stages of gathering ideas and thoughts about starting a business. I'm due a baby in 6 months so don't intend on following through on ideas for some time yet once baby is settled and we've moved house and personal finances are settled.So this really is early days.

But what I'm looking for is any business owner (preferable beauty salon or spa) who would be willing to advise me on a few things from what their basic start up costs was like, how they got from idea to opening etc. Basically a few business related things.

I'm doing a lot of research just now into how to run a business and business studies etc. But obviously I can't see a local salon owner being very willing to confess how they got into business to someone who may potentially be a competitor. (I'm in Aberdeenshire, North East Scotland)

My very rough idea just now is a high street salon with the spa feel and quality. I would like my emphasis to be on high quality products, up to date regular training, waxing specialist (my personal favourite treatment) possibly child friendly days/house. I would like to provide a good environment for any potential staff (flex hours, plenty of time for treatments to be carried out with additional time for changing, breaks to ensure rooms are clean etc) I have lots of ideas, all sounding very expensive and not conducsive to breaking even, let alone making a profit! :D


If anyone is happy to help, whether its just a quick list of tips, or a longer term email mentor I would be extremely grateful. I don't have any exact questions at this very moment but give me a few weeks and I can write up a list of things I'd like to know.

Thanks for reading!
 

tigi

Well-Known Member
Joined
Oct 25, 2008
Messages
1,851
Reaction score
99
Location
north wales
Hi there

Im sheila (aka Tigi) I have a salon and training academy and I d be delighted to help you in any way that I can. please fire away and ill do what I can to assist you.

tigi
xx
 

Lady_Stardust

Well-Known Member
Joined
Jul 23, 2008
Messages
70
Reaction score
0
Location
Aberdeenshire
Perfect! Thank you! Like I said I've no big questions just now but give me a few days and I'll have a nice big list! lol
 

Lady_Stardust

Well-Known Member
Joined
Jul 23, 2008
Messages
70
Reaction score
0
Location
Aberdeenshire
Ok I've got a list of questions (got all excited and wrote it down now instead of making dinner! lol), I don't know if all are completely relative and I'm sure I've got some gaping holes in things I should be asking. I understand not everything will be something you are willing to share but any info you can give would be fantastic! Its rather long too so I don't expect everything to be answered but like I said, anything is better than nothing!

I'll pm you my email address too if you'd prefer to reply that way. (and anyone else who is happy to help)

Thank you again! This is soooo helpful to me!!

(sorry for any typos!)




How do you deal with finances – accountant, personally, how much does your accountant do (basic accounting or everything from paying staff to filing tax returns etc, how much does this cost you? How do you do your accounting if done by yourself – software?paper?


How are you funded, did you need to secure it against anything?
Are you a sole trader/ltd/partnership etc and why did you choose that option? Who profits from it?
How long did it take you to breakeven? How long till you made a profit? Did you pay yourself a salary from day one?
Are you working as a beauty therapist(or applicable trade) or just running the business?
How many hours did you put in during the early years?
How did your family cope with the new business/long hours?

Do you buy/rent the property and why did you choose that option?
Did you write a business plan, how many plans if so?
What was your business idea, what made you different from competitors?

Do you have a special relationship with any suppliers or do you just use the normal (beauty express etc)
Do you employ anyone for team management/employment law?

What were your financial/business forecasts and how did you come to those conclusions?
How much market research did you do and how did you go about getting it?

How do you bank, pay staff?
How do you pay VAT/how do you manage your money to pay VAT yearly?

How did you deal with any personal weakness’?
How did you capitalise on your strengths?

How did you deal with limiting factors such as funding etc?
What major resources did you use in the early days?

How do you manage your profit and loss account, do you regular monitor performance of business, does anyone help you with this, do you share profits/loss with any staff.
How do you document assets, liability, KPIs, stock holding, how often do you pay suppliers, how do you ensure a good cash flow.
What critical things drive your business and how have you implemented KPIs.

Do you employ staff, if so who? Are they money makers or not? (therapists vrs receptionist)
How do you find employing staff, how did you find them, how did you know they are the right ones for you, how do you find managing them, how did you work out salaries/employment terms (part-time, full-time, room rental)

How did you chose your products, what approx cost is your products monthy (eg skincare – how much capital did you spend and how much each month do you “top up”)
How do you improve retailing?

How much do you spend on training/going to trade shows/general improvements to salon/spa?

How did you plan to develop the business, what time frame, do you have an exit strategy?

[FONT=&quot]Anything else you feel might help![/FONT]
 

tigi

Well-Known Member
Joined
Oct 25, 2008
Messages
1,851
Reaction score
99
Location
north wales
now that is some list! lol.

Ill take chunks of it and reply to each bit in turn. xx
 

Lady_Stardust

Well-Known Member
Joined
Jul 23, 2008
Messages
70
Reaction score
0
Location
Aberdeenshire
Thank you! lol Sorry it is rather big! Feel free to just answer what you like. x
 

Camille

Active Member
Joined
Sep 11, 2011
Messages
35
Reaction score
6
Location
South West London
I'm in a very similar situation to u, although not pregnant yet (but trying!!) You've raised some really good points which need consideration! I think my research phase is going to take a good few months at least, but I'd rather be educated about it than go in blind! Xxx

Sent from my Desire HD using SalonGeek
 

Lady_Stardust

Well-Known Member
Joined
Jul 23, 2008
Messages
70
Reaction score
0
Location
Aberdeenshire
I'm in a very similar situation to u, although not pregnant yet (but trying!!) You've raised some really good points which need consideration! I think my research phase is going to take a good few months at least, but I'd rather be educated about it than go in blind! Xxx

Sent from my Desire HD using SalonGeek
Yeah I'm planning on doing a couple of years of research and a lot of business courses to make sure I'm fully prepared before heading into the big bad world of borrowing a heck of a lot of money most likely secured against my house" eeeck! lol

Business Gateway (in scotland - theres is a version in england/wales etc too) do lots of free courses and have a great website with tons of info on it! Worth a good nosey!
 

MissBella

Well-Known Member
Joined
Mar 25, 2008
Messages
50
Reaction score
0
Location
Staffordshire
I'm very interested in this too! I have found my property and in the process of securing it and the obvious money ;)
 

sabrina92

Member
Joined
Aug 6, 2011
Messages
14
Reaction score
0
Location
Nottingham
so glad you made this thread :) will be listening closely to all advise.
 

Camille

Active Member
Joined
Sep 11, 2011
Messages
35
Reaction score
6
Location
South West London
so glad you made this thread :) will be listening closely to all advise.
totally agree!! a lot of great (although headache inducing!) points to think about!! fab thread xxx
 

Camille

Active Member
Joined
Sep 11, 2011
Messages
35
Reaction score
6
Location
South West London
Yeah I'm planning on doing a couple of years of research and a lot of business courses to make sure I'm fully prepared before heading into the big bad world of borrowing a heck of a lot of money most likely secured against my house" eeeck! lol
I agree I'm still trying to figure out where to start! Have u thought about advertising and promotions? For example how and where to advertise, how much to spend at the start and whether or not to create a website etc.... I'm stuck on the best way to advertise, but I get it will become clearer once I've done a not more market research ;)

Sent from my Desire HD using SalonGeek
 

Camille

Active Member
Joined
Sep 11, 2011
Messages
35
Reaction score
6
Location
South West London
*meant "a lot" :S

Sent from my Desire HD using SalonGeek
 

Sarah-Jean

Well-Known Member
Joined
Aug 5, 2010
Messages
345
Reaction score
17
Location
Milton Keynes
Some of these questions are really very personal and things you should be figuring out for yourself. If you can't then maybe you're not ready for the plunge yet.

That said I'll answer as best as I can - hold on I'll do it in a different post cos it's going to take me ages to answer all those questions...
 

Sarah-Jean

Well-Known Member
Joined
Aug 5, 2010
Messages
345
Reaction score
17
Location
Milton Keynes
How do you deal with finances – accountant, personally, how much does your accountant do (basic accounting or everything from paying staff to filing tax returns etc, how much does this cost you? How do you do your accounting if done by yourself – software?paper?
I do all my own accounting... It's not nearly as hard as you would imagine if you keep a tab on everything you spend and everything you have coming in from day one.

How are you funded, did you need to secure it against anything?
I am privately funded through money from my other business and a loan which I pay off monthly, from a family member.

Are you a sole trader/ltd/partnership etc and why did you choose that option?
I'm a limited company. I never operate a business any other way, it's not worth the risk in my opinion. I like having limited liability "just incase".

Who profits from it?
Who profits from what?

How long did it take you to breakeven? How long till you made a profit? Did you pay yourself a salary from day one?
I'm nearly 11 months in and only just started breaking even the last 3-4 weeks. I've not taken a penny from my business yet and don't see that as being a possibility for some months yet considering the bills I have to catch up on.

Are you working as a beauty therapist(or applicable trade) or just running the business?
Purely on the business side. It keeps things focussed. I only do treatments as needed/requested.

How many hours did you put in during the early years?
My salon is open 48 hours a week... I probably put in another 10 on top of that.

How did your family cope with the new business/long hours?
They haven't coped well. My children in particular have suffered. I tell myself that it'll be worth it though in the end.

Do you buy/rent the property and why did you choose that option?
I rent purely because I didn't have the available finances to buy.

Did you write a business plan, how many plans if so?
I've owned many businesses in different sectors. I don't tend to write business plans anymore.

What was your business idea, what made you different from competitors?
Too personal. Sorry.

Do you have a special relationship with any suppliers or do you just use the normal (beauty express etc)
I use a mixture of suppliers - I'm not sure what you mean by "special relationship"....

Do you employ anyone for team management/employment law?
I pay a HR company called Peninsula to deal with my HR after a nasty experience with a particularly unpleasant member of staff. Worth. Every. Penny.

What were your financial/business forecasts and how did you come to those conclusions?
Bit personal for my liking. However, I based some of it on what the business was currently doing... Big mistake!

How much market research did you do and how did you go about getting it?
I didn't do much with my first salon... Again big mistake. I did more with my second salon. How you decide to base your research and what you decide to research on is upto you.

How do you bank, pay staff?
I bank with Natwest and pay staff monthly via either transfer or cash.

How do you pay VAT/how do you manage your money to pay VAT yearly?
I'm not VAT registered at the moment. And will hold off on that for as long as humanly possible.

How did you deal with any personal weakness’?
Not sure I understand the question. I'm a business person running a business. It's not really a personal thing as such.

How did you capitalise on your strengths?
My strengths lie in being able to think outside the box to sort out problems... That's helped me a lot in all my businesses.

How did you deal with limiting factors such as funding etc?
Creative money juggling! LOL Seriously though, we have been so cash strapped if it wasn't for the ability to think differently from the norm we'd possibly not be in the situation we are now. I can totally see why so many salons close in the first few years.

What major resources did you use in the early days?
I don't understand the question.

How do you manage your profit and loss account, do you regular monitor performance of business, does anyone help you with this, do you share profits/loss with any staff.
I monitor everything on a daily basis, weekly basis and monthly basis. Where the money comes from, where it goes too, where isn't performing, where needs improvement. Some of it I share with my staff, some of it is personal to my business and not publicly shared.

How do you document assets, liability, KPIs, stock holding, how often do you pay suppliers, how do you ensure a good cash flow.
Depends what systems you personally use. Everyone is different.

What critical things drive your business and how have you implemented KPIs.
I'd rather not answer this.

Do you employ staff, if so who? Are they money makers or not? (therapists vrs receptionist)
Yes. I currently employ one full time stylist, one part time (and recruiting another), one part time beauty therapist who will be going full time soon, one salon junior and my husband who helps me manage... I'm also about to start recruiting for a dedicated receptionist.

How do you find employing staff, how did you find them, how did you know they are the right ones for you, how do you find managing them, how did you work out salaries/employment terms (part-time, full-time, room rental)
Most of my staff found me. When I have recruited I've done it via Gumtree as I've tried everywhere and Gumtree was the only place that got me any results. I work out salaries based on what I can afford, how much they can bring to the salon and what I think they're worth. I recruit mainly on gut feeling...

How did you chose your products, what approx cost is your products monthy (eg skincare – how much capital did you spend and how much each month do you “top up”)
I chose products I like and believe in. Most of them had a start-up package which we're still working through. I am just about to start having to place regular orders now.

How do you improve retailing?
I am about to start regular sales training with all staff, as well as good incentive schemes and commission rates.

How much do you spend on training/going to trade shows/general improvements to salon/spa?
A lot! LOL

How did you plan to develop the business, what time frame, do you have an exit strategy?
No exit strategy other than the fact I'm a Ltd company. I don't believe in planning to fail personally. I planned to expand to a second premises within first two years (we're actually ahead of schedule as we're just about to open our second salon)... I'm now planning the third salon for within the next year... But I suspect again that it'll happen sooner if all goes well with salon #2!

Hope this helps some! :p
 

Lady_Stardust

Well-Known Member
Joined
Jul 23, 2008
Messages
70
Reaction score
0
Location
Aberdeenshire
Thanks for taking the time Sarah-Jean! I know its a rather huge list and some things not everyone is willing to share but you've given me lots to think about so thank you!
 

tigi

Well-Known Member
Joined
Oct 25, 2008
Messages
1,851
Reaction score
99
Location
north wales
email one sent. email two to come to you soon xx
 

Lady_Stardust

Well-Known Member
Joined
Jul 23, 2008
Messages
70
Reaction score
0
Location
Aberdeenshire
Thank you! Very helpful!
 

Latest posts

Top