How did you all fund your business'?

[Sparkleberry]

Hi-sorry in advance if you think Im being super nosey:o but Im just curious as to how all you successful business owners funded your salons? Did you take out loans for the full amount? Use credit cards? Already had the funds available? A mixture of the above? Also, how did you cope with the repayments for the first few starter months-did you set aside 'x' amount of months worth of rent/repayments/wages to cover your selves? Im keen to gain as much insight from as many people as poss who have 'been there done that'!So I apologise if Ive offended anyone by asking this.
xxx:hug:

 

[Martin Duffy]

I have a lot of equity in my house, so I added it to my mortgage. I already had an existing client base as I had rented a room for 6 1/2 years previous, but as the premises was going up for sale I had no choice but to set my own rooms up!

 

[collin]

Remortgage,HUGE overdrafts,credit card at times..apparently im worth more dead than alive

Wondered why my wife keeps ramming muscles down my throat at every opportunity she can..."don't worry dear these are good for you" :lol::lol::lol:

 

[weezie]

I funded my mobile business from savings from the job I had before I trained. :hug: If I was to take on a salon I would be depending on a loan, probably from my lovely parents!

 

[loubylou]

I took out a bank loan for two thirds of the amount needed to buy the business,
had one third saved up,
and borrowed £5000 from my other half to fund equipment needed and first 6 months of expenses,
oh yes and didn't take wage from the business and worked my backside off to stay up and running,
its a long hard slog but worth it in the end
and its a great feeling every morning opening up and working for yourself, hth :hug:

 

[champagne]

No loans....used my CC to fund some of it, from training to rent a room to own salon ive only spent approx 5k and that includes all my training..

Start small & build slowly, with hard work it is possible on the smallest budget...

I seach high & low before i buy anything and i only buy on need not want..

Good luck x

 

[Martin Duffy]

Start small & build slowly, with hard work it is possible on the smallest budget...

I seach high & low before i buy anything and i only buy on need not want..

That's excellent advice, I did similar - printed & designed my own pricelists, business cards etc, and bought second hand Ikea furniture etc to get up & running and now buy things as & when I can afford them.

I always think of anything I want to buy in terms of how many treatments I have to do to pay for it, that normally makes me think twice before I spend!!

 

[Sparkleberry]

Aw thankyou everyone for your replies! Panic was beginning to set in at the thought of having a huuuuggggeee credit card balance, or loan to repay, so its nice to know that not everyone is able to open up with the funds already there (through saving etc) lol Collin you made me giggle:lol: Its all very scary isnt it-esp the prospect of not drawing a wage, but loubylou, I cn totally see your point re the sense of satisfaction opening up of a morning knowing its all yours.........ahhhh thats what I cnt wait for-to be able to look around at something IVE created!!!!!heyho-back to the calc, Im determined to be frugal:lol:
xxx

 

[Sparkleberry]

Champagne and Martin-yep-v sound advice and is spurring me on in my attempts at frugalism-if thats even a word lol!My first hopes were for a totally unrealistic salon, now Im trying to start small in the hope that eventually Il be able to get to where I want to be in few years-gulp-or more!!! As per you advice a few days ago Martin-Im working on my 'list' and discovering that my 'needs' were really more of 'wants' grrr!!!! And so will be put in the 'one day' column!!!!Its helping though!!!! So glad I found this site-its really helpful, a total godsend!
xxx

 

[collin]

Aw thankyou everyone for your replies! Panic was beginning to set in at the thought of having a huuuuggggeee credit card balance, or loan to repay, so its nice to know that not everyone is able to open up with the funds already there (through saving etc) lol Collin you made me giggle:lol: Its all very scary isnt it-esp the prospect of not drawing a wage, but loubylou, I cn totally see your point re the sense of satisfaction opening up of a morning knowing its all yours.........ahhhh thats what I cnt wait for-to be able to look around at something IVE created!!!!!heyho-back to the calc, Im determined to be frugal:lol:
xxx

Well no manner of sleepless nights ,or worry over the size of that darn overdraft comes anywhere close to the joys of running your own business.

Right..ive changed my will and insurance policy so don't need to eat any more of them darn mussels :lol::lol:

 

[pretty-in-pink]

i wish i had the money to run a business i love too! theres a salon thats needing someone to rent it as its closed because the people who was renting it from this man ran off with the equipment and cash lol...quite bad but anyways im not sure how much it would cost and i know theres quite alot that needs doing to it as it looks like something from the 60's lol because i used to work there but i wouldnt want to take out a loan incase it doesnt all work out plus im not fully qualified in hairdressing yet but know people which could work for me...which would be the best way to go about it if you want to rent a salon from someone?

x

 

[cabinkel]

I currently work from a home salon as i have two young children and need the flexibility, BUT....... I plan on buying a salon when they are both at secondary school.
Therefore, everything i do now is with that plan in mind. I always do a couple of courses every year, I treat my clients, old and new, like jems and make sure I am always learning and going forward.
Another important thing is that I keep very strict account books. I make sure I am aware of what areas my income is coming, what i spend on products, how successful monthly offers are etc. I feel this will hold me in good practice when I have my salon, (also Im an ex bank manager so prob a bit particular about book keeping, lol)
Like Champagne said, I research everything and only spend when i need to. Although that lesson took just a tad longer to learn:green::green:
I am hoping to go into my salon with no debt as i save already for it! I am a planner, lol

 

[RedAdmiral]

My start up was easy I used half savings and half loan, I spent a couple of grand on the cards but not so much that wasnt paid off n first 2 months. I owe very little out and its not hard to pay back. I currently am trading from my overdraft which has been scary and would love a windfall just to get me back to zero.............. keep dreaming!:zzz:
I dont know how but I survive on nothing, I dont get paid and occasionaly teach to top up my personal account. it is crap and I'd love new shoes, bags, clothes, saturday off but its all part n parcel and I'm a year open in a couple of days and this yr is gonna be so different.

 

[Brandywine]

I started my home salon with a small amount of money my brother left me when he died and a couch which I was given for Christmas. This paid for a small amount of equipment, decorating my room and some decorative pots and plants to put outside. The rest I have paid for as I've gone along as I started with Swedish massage and have added more treatments as I've saved for training and products/equipment.
My brother would be pleased that the small amount he left me gave me the kick start to something I love doing.

 

[julesgems]

Hi

A lot of mine was paid for by doing overtime in my other job before dropping my hours to start this! Most of my courses were paid for like this. My old boss thought I was keen - had no idea what I planned for the future!

Also, every birthday and christmas my hubby pays for something beauty related for me ie for christmas I had a beauty couch and trolley, for my birthday last year I had a pedicure seat! I save all the receipts and put them through my business - its nice not to have to fund them out of my own money.

 

[smartbookings]

I would also go for starting small, maybe build up a few regular customers first with mobile and then take the plunge with a small room annd go from there if it works well..

 

[Curly Bamboo]

Hi Sparkle

I started on own my 5 months ago through personal funding - I rent a room in a gym. I believe this strategy is lower risk than opening a salon (renting a premises with a long lease). It takes time to build up clients. Clients will come because of you.

Speak to Business Link and they will put you in touch with a local business support centre which will provide free a business startup course. You will learn how to work out your startup costs, learn to do a forecast and work out how you can achieve your business funding.

What's important is being able to a cashflow, working out how much money you have to pay bills and expenses, know how much cash you have at anytime and figure out when you can pay back the business and start drawing a salary!

Lots of sleepness nights, but every morning when you wake up its feels so good to have something of your own and to be your own boss. You can be flexible and decide your own hours! No one needs to know you are having the morning off, just say your fully booked!

 

[plonker]

well ive done beauty therapy for 5 years and had almost everything i needed which was birthday and christmas presants just had to top up in a few areas which the funds were kindly donated by my mums partner my dad and my partner only £600 altogether i am tho only renting a room but its still my business and am proud of getting to this point and knowing i will only get bigger and better