can passing trade pay the rent

[laneypants]

Hi guys I need to bounce a few questions off you all to try and get things straight in my head. Basically my situation is that I am renting a room in a gym which i only use part time, the regular clients i have pay the overheads but there is no passing trade whatsoever-even if there was the salon is right down the far end hidden away. All of my clients have been gained through advertising. A small unit is going to soon be available in the town centre and it is located where you have to walk past it if your going anywhere but the rent will be triple than i am paying now and to make it work i would need to do it full time which would also mean putting my daughter into nursery full time.
So my questions are; what proportion of your clients are 'walk-in'/passing trade, compared to your regulars. Do you think it is enough to make up the extra rent?
Is it enough just to do nails or should there be other services (i dont think there is enough room for anything else in the centre location)
and can anyone give me a psychic forecast to tell me what i should do:wink2:

 

[spraytanpro]

Thats a very tricky decision you need to make.

Only you have all the facts & figures to hand.

Sit down & do a cash flow & try not to forget anything, not just the extra costs you will incur through business rates, a telephone line, heating etc, but things like business lost through clients ringing & getting a machine. There will be loads of hidden expenses some of which will increase & some will decrease, even when you think you have thought of all of them, you will still miss something.

I know exactly where you are coming from as we to are considering moving to a high street location & have finally come up with a figure which we will need to take to cover all the added expense. The amount is attainable for us (I think), that said we are a team of 4.

1 person can only do so much work & I know of therapists who have kept it small with just themselves & manage to earn more than a salon owner with several staff & a hight street location. You don't want to find yourself working fulltime just to pay the landlord & the council etc.

You mention that you get all your clients through advertising. The more clients you can get through not advertising the better. The best way to increase the amount of clients you get is to encourage your client base to recommend a friend. I personally think those little ads in newspapers are some of the most expensive ways of getting clients.

We are in the middle of knowhere & have enough business to keep 2 of us busy fulltime. We do no advertising & get no passing trade.

All is IMHO,

Good Luck with whatever decision you make.

Richard.