Earnings for a home salon - paying off business loan

[Oldtimer]

I know this is a very wide range but I'd really appreciate any opinions on what I should expect to make with my home salon? I really have no idea and the initial outlay on equipment etc is so high I'd just like to know when I'm likely to start turning a profit once I've paid back the business loan! I'm going to be offering facials, massage, hot stones, waxing hot and strip and possibly minx nails...

Any guidance at all, please!!

I should add the business loan will be circa £15,000, when do you think I'll have paid it off?!

 

[Sarah-Jean]

It really depends on how many clients you currently have I suppose. How long is a piece of string, sort of thing....

Why do you need £15k to set up a home salon?!! That's quite a lot of money for a home salon...

 

[Oldtimer]

OK, it's 5k for the home office/log cabin which will be a permanent fixture whether the business works or not. 5k for products, I'm aiming for quite a wealthy high end market so am thinking Decleor or similar and 5k for equipment, I'd like a microdermabrasion or perhaps a microcurrent machine for facials. I'll have one beauty room and will work as many hours as I have clients, I have children at school so probably, 9-2 and 7-9 every day if needs be.

 

[Lou x]

I wouldn't get such a big loan! Maybe just enough to cover the log cabin and your essentials..
I am a mobile tech and offer lashes, spray tans and nails.
I saved by getting a lot on eBay, my massage table is perfect and professional looking (better than I've seen in some salons!) and I got it for about 50pound!
I also got really nice chairs (the spinny ones you pump up and down) for 7pound each in tesco! And they are like a clearish black and chrome!
A little can go a long way!
So if I was you I'd get a small loan and start buying the more expensive things you'd like by saving up, Paying off your loan and buying things here and there for salon! x

 

[Elegant Beauty]

I also think 15k sounds alot to start up a home salon. Are you already established? Have you got a clientele base already? Are you sure you could not set up for a smaller amount? x

 

[vitality]

That's quite a lot on products and equipment especially if you have no money to market and advertise it. How are you going to get new clients apart from word of mouth?

 

[ajshard]

I started in April last year and spent at that time about 1/3rd of what you are planning, business didnt really kick off till Sept, I work school hours, some evenings and some saturday mornings. My intitial start up is currently slightly lower than when I started in April 2010 but have added new treatments since my start up. I dont expect to actually turn a profit for another year yet.

Im lucky tho i had the cash for my start up so no loans to pay.

Good luck with it

AJx

 

[smooth]

I built my private treatment room so that was £3000 (brick built though) and it was only that cheap as I knew the builder and he did a massive rear house extension at the same time. Fixtures and fittings were £1500 (loo, sink, tiling, lights etc). Equipment I bought should have cost me £16000 but got them for £3250 in the end due to this funding that I successfully applied for. Then it was product and consumables but due to what I do (aesthetics) I just bought as I needed them.

I also ran clinics in salons so I quickly got my money back and had high profit margins which helped. I wouldn't go for a product range that is going to cost thousands for your opening order until you know you have the clientelle for it. What if it doesn't take off as quickly as you hope and you have product that has gone off? I'm assuming you have no clients as you state that the cabin will stay whether the business is successful or not.

Start small and build up unless you have huge marketing campaigns and a good client base to start. Home salons work well but as with everything you need to put the work in from the start. x

 

[elliebee]

I'd love to know how you've managed to get a £15k business loan in this current climate.

Well done you! You must have really impressed the bank manager.