How much should I save?!

[Bombalurina]

Hi Geeks,
2009 is MY year I have decided, to do what I want to do with regards to my beauty business...therefore, I have set myself a little target; to be renting a room somewhere by this time next year.

Bearing in mind I have most of the equipment I need to start off with (I do mobile work anyway), how much do you think I should save before I even consider biting the bullet?

I know I will need more fleeces & sarongs (I don't really use towels), a decent static couch, trolleys etc, and I can cost that out for myself really; but having never rented anywhere on my own before, I want to know how much most of you had to fork out in advance!!! How many months rent up front? Council tax? hidden costs I've not thought about?!

Also, did most of you look for somewhere that was already done out like a salon, or did you decorate etc yourselves? And is it worth investing in lots of retail straight away, or waiting?

Thanks Geeks, the more I think about this, the more daunting it seems! XX

 

[Martin Duffy]

I set myself up on £10,000, but I took out £12,000 so I had a buffer. I did most of the work myself & dragged in favours left, right & centre. You can save so much if you don't mind pitching in! My premises was an empty shell, which I had walls built into & sinks etc put into, but most of my family are in trades so it got done at material cost & promises of freebies for their wives!

Most skincare, nail & tan companies seem to insist on retail, but to be honest I have shifted it quite quickly & it has helped immensely in covering costs.

As for costs, I had to pay 3 months upfront plus the solicitors cost as I took a 5 year lease (the solicitor costs were about £800 for my side, my landlord paid his own). Normally you will have extra costs on rent, such as holding insurance & an amount towards maintanance. Business rates are worked out on what the council say the premises are worth, the amount a year is multiplied by a set figure & then you can claim small business relief depending on takings etc (see their website). Other than that it's public liability, contents insurance, water etc, electrolysis licence (if you're doing that), licence to play music & data protection licence.

Although it seems daunting, once you set a plan of action in place it's quite exciting - I did mine in two weeks, but I had little choice as the place I was renting in closed down, so setting myself up was kind of forced on me!

 

[AndyP]

It would be very difficult for somebody to put a figure on this for you as there are so many variables, as you have already said yourself - do you decorate somewhere or move into somewhere done both woudl cost different amounts. I think the main thing you need to do is start looking for somewhere view a number of places and you will find that the right place will just feel right - gut instinct. You can then find out how much it would cost to convert into how you want it and what the rent would be. I then suggest you save enough to do up the room, spend on your first couple of months advertising, buying in your products etc and then a bit of contingency in case you don't take off straight away - i would suggest enough to live on for 2/3 months.

But for me the key thing is as mentioned is find out what it would cost in your area, as many threads cover London is loads more expensive than up north. If you are anywhere near the midlands i will be having a room coming up for rent in the new year !!

 

[hippy-chick]

it would take off the pressure if you rented a room in another premises, ie hairdressers or chiropracters, etc.

 

[Bombalurina]

Thankyou for your help I know it's difficult to put a figure on this, so I do appreciate your responses, and you've definitely given me food for thought
I will go forth and save, save, SAVE!!!!
XX

 

[selmarose]

I always tell people to do a written business plan. It will help you see what your assets are and what you need to add to them. It becomes your road map. I tried to have 6 months of cushion. You can get average rental prices from other business in the area you hope to locate. Also talk to Realtors or property managers. Look for hidden costs like insurance and local fees or licenses. Check on utility costs. Keep an accurate record of your current business expenses so you can factor this data in. In the States we have small business development centers at our community colleges that will help us for free. Don't be afraid to talk to other business people. They are usually happy to share info. Even if it is not beauty related business is business and some rules are standard to all of them. Good Luck!

 

[EMMA AT ELITE]

Is it a room you want to rent or a shop/salon you want to rent because as I am sure you know there is a MASSIVE difference in how much you need to save depending on what you are after.

I rent a beauty room in a sunbed shop and have been there nearly 2 and 1/2 years so if you decide to rent a room and need any help feel free to PM me.
Emma :hug: