Costs involved in leasing premises

[Oldtimer]

Hi apologies for being dim but could anyone let me know if there are additional costs I haven't considered:

Rent
Electricity
Gas
Water

What are business rates? Is there a business equivalent of council tax?

I'm trying to work out if it's worth switching from home salon to an actual salon on the high street... :Scared:

 

[Claire293]

Hello,
Yes council tax is like council tax. If you type into search engine business tax and the area you live you should be able to find a telephone number for your local council. On some businesses at the moment there is a business tax relief which means it is 100% free until march. I am not surely all business premises get this relief or not.
C

 

[Claire293]

Sorry business tax lol.

 

[jojo@tranquil]

Business rates are worked out on square footage of premises and location, not sure what else, atthe moment I pay zero rates because of double tax relief, but when I move premises next month I think I will be paying something as its double the size !
Having a salon is costly Trust me ! But worth it, do all your homework well 1st the council should be able to give you an idea on rates.
Good luck

 

[jojo@tranquil]

Insurance too, contents and public liability, but I guess you already need that with a home salon.
Will you employ staff ?

 

[Oldtimer]

Ah, that's what I thought council tax = business rates!!

Yes, I'll employ probably 2 people but am considering doing so on a freelance basis so they invoice me and then sort their own NI etc.?

I am worried.

I work 3 full days and 2 evenings and am full 100% to capacity with no advertising or incentitves so I'm assuming/hoping that I could turn it to 6 days 4 evenings with advertising.

It seems like such a lot that you have to earn before you make any profit though! The place I want is £25k pa lease... so more than £2000 a month just on the premises.

:Scared::Scared::Scared::Scared:

 

[exquisitebeauty]

music license
rates
leccy
gas If central heated
chip and pin for card services
telephone line
wear an tear on the property as landlords do **** all!!! {sorry for swearing but i have experience in dealing with dodgy landlord of late}
u'll need pricelists done
appointment cards with telephone/email address etc doing
sign for shop front
decorating cos again landlords don't decorate all down to you
water rates
uniforms for staff
retail
sercurity ie roller shutter an alarm if premises aint already have them
roller shutters will need planning permission i know stupid
erm washing machine and dryer for towels & sheets etc for beauty couch
then all you're products & equipment you will use

 

[Oldtimer]

Thanks, I've got most of the equipment, uniforms etc it's the running costs that scare me. Can I really turn a profit?!!! It scares me that I need to bring in £2000 per month for the rent alone. But nothing ventured nothing gained!!