I have the salon bug... again

#1
I currently have a converted room on my house which I work from its fully equipped and very professional
 
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#2
....oops didn't mean to press send.
But I just think I would love my own salon, I'm really busy and earn a nice wage from my job so wonder if I should just stick where I am as lots of salons pop up round here then close within 6months.
I live in an expensive area so for a good size shop I'm looking at around 1k rent a month unless I go to a surrounding town which is very deprived and not the client base I wanto hit however rent will be half of what I would pay local to me.
I would get a hair stylist in and possibly a nail tech with sunbeds, so I wouldn't be relying solely on my wage.
I'm in 2 minds- if it ain't broke dint fix it. I could run a shop at a loss

I can only earn what I'm earning working from home, so move on up.

So who's found opening a salon the best move or has opened salons and wished they hadn't? X
 
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#3
Hi, sorry to invade your thread but I am also in a similar situation renting a room in a hair salon (not a busy one) and I am doing well for myself.
The opportunity has come up for a salon down the road but the rent alone is double what I pay at the moment.
A hair extensionist I know has asked me to rent her a station and she would pay half the rent I would just have other bills on top ie water and electric.
Good luck with whatever you decide, I do think though that a shop front would draw more interest x
 

#4
Having done it, I would say don't. Just my view but you end up paying out so much...rent,business rates,all the utility bills etc. If you do decide to go for it I wish you well.
 

#5
Rent is generally 20% of total overheads if that helps you make your decision.
 
#6
20% ? Wheres the other 80% geeze I know it wouldn't stop at rent, but I'd be entitled to reduced if no rates for small business (this may just be Essex area) insurance water electric phone can't see this mounting to more than 4x the rent?
 
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#7
Having done it, I would say don't. Just my view but you end up paying out so much...rent,business rates,all the utility bills etc. If you do decide to go for it I wish you well.
Thankyou x
 
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#8
vat
tax
staff costs
paye and ni
ppl licence
prs licence
insurance
bank charges
c/c machine charges
telecoms and broadband
website costs
accountancy charges
HR support
gas/electric/water
business rates
stock
equipment renewal/repair
refreshments&magazines
premisis repairs (leases are repair &insure)
premesis insurance
security
consumables
mineral water machine

That was just from me running through my list of direct debits, and off the top of my head.
oh yeah, special treatment licence.
 

#9
A great reality check, Persianista - and a really helpful quick-guide to pricing up treatments because THEY pay for ALL that, and we and our clients need to know that!
 

#10
i did it last year and wished i hadn't. there is so much pressure on salon owners what with trying to pay all the bills, do all the paperwork, deal with staff issues and attract customers, i found that i was no longer doing what i enjoy i.e. treating clients.
my salon was in a deprived area so clients were hard to come by but i don't think making loads of money would have made much difference to how i felt - i'm just not cut out for that role.

I've now gone back to being mobile and am loving it last even though im still trying to build a client base :-D

U need to ask yourself if you would truly be happy as a salon owner?

Hth

Sent from my GT-I9000 using SalonGeek
 

#11
just added mine up. The rest of my outgoings add up to approx 8x my rent.
 
#12
Sounds like a big salon? Something that would cost me the same should I Build up a great business, I am looking at quite low key, I certainly wouldn't be reaching vat, employing staff web costs hr ect.

I guess also taking rent as a percentage of the cost would also depend on the rent you pay in the first place.

Thanks for advice not being a salon owner it's good to see potential over heads.

I do a lot if paper work for my husbands business so I'm not clueless I know it would be hardwork but I like a challenge,
just looking for other peoples experience
 
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MrsHBeauty

Active Member
#13
I opened my salon in November.

I need to take £55 a day over a 6 day week to cover costs. I don't pay rates (I get 100% Small business rates relief from the council) And I've had my rent deferred for a year. I don't get paid yet but that covers the 2 part time therapists, and all out goings. I have a small 1 room salon with much more potential to expand to add another 3 treatment rooms. But I am building it up slowly, as money allows.

It isn't plain sailing, I have many sleepless nights over 1 thing or another.

But I love it so much!

If I had to commit to a lease and rates I'm not sure I'd do it, because I have had to borrow a lot of money to pay the bills as we haven't been covering costs some weeks.

It's not a decision to take lightly x
 
#14
I opened my salon in November.

I need to take £55 a day over a 6 day week to cover costs. I don't pay rates (I get 100% Small business rates relief from the council) And I've had my rent deferred for a year. I don't get paid yet but that covers the 2 part time therapists, and all out goings. I have a small 1 room salon with much more potential to expand to add another 3 treatment rooms. But I am building it up slowly, as money allows.

It isn't plain sailing, I have many sleepless nights over 1 thing or another.

But I love it so much!

If I had to commit to a lease and rates I'm not sure I'd do it, because I have had to borrow a lot of money to pay the bills as we haven't been covering costs some weeks.

It's not a decision to take lightly x
Ah well done glad your enjoying it, did you get you rent deferred through the council too u have heard a few people in my area mention something about no rent for first year to see how your business goes usually in old charity shops. X
 
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MrsHBeauty

Active Member
#15
Ah well done glad your enjoying it, did you get you rent deferred through the council too u have heard a few people in my area mention something about no rent for first year to see how your business goes usually in old charity shops.
I rent my premises from my dad - but this doesn't mean an easy ride, I hate telling people I rent from my dad and that he lent me the money to start as I certainly don't have everything handed to me on a plate, hence why I'm working 50+ hours and not getting a single penny for it until I've paid him. Back and started paying rent.

X
 

#16
Hi
I made the jump and got my own salon after having a room. It was great having the freedom to choose my own style / products etc to have in the salon etc. However, the hidden costs were far more than I had initially expected, and the difference between having one room and a salon is that people expect a salon to be "open all hours", when it's just you and a room you can be more flexible and people understand that it is just you - they aren't so understanding when you have shop premises and think you should have therapists just waiting for them all the time!.
I got no rent rebate at all so paid full rent from day 1. I did get small business rate relief but it did not cover all the business rates (less than half) so I had to pay the difference. The cost of overheads are quite high for a salon -

Rent/lease costs
Business Rates
Insurance - treatment, product liability and public liability
Phone line rental and calls
Mobile phone (if you use one for business)
Rubbish removal (no domestic waste service as it's a business and that has to be paid for).
Repairs/redecoration of the salon every few months to keep it looking fresh.
Window display materials (if you change them regularly).
Prs licence for music
water rates
gas and electricity
card machine
Cost of someone to cover reception while you are doing treatments or to employ another therapist.
Product and consumables cost, and cost of products to retail (though you get retail costs back it's not always straightaway).
Laundry cost (it adds up to more than you think if you are busy)
Printing/design costs - for price lists, appt cards, loyalty cards etc - which you will get through thousands of (I thought people were decorating their walls with my price lists I got through so many of them!).
I know some of these can be small costs in themselves, but when you have a salon and add them all up week in week out before you pay yourself a wage it does make a difference.

While I wouldn't want to put you off I decided that after having my salon for a few years that I would return to being mobile and working from home as it was more flexible for me - and my lease was up for renewal - and the rent was put up (because I was busy!!!) and i'd had to have signed for a long time (very tying). I make more money for myself now (much lower overheads) and I can choose my working hours.

If you want a salon go for it, but it might be worth asking yourself the pros and cons of having a salon and if what you are doing now suits you more or not. I was very lucky and had a busy salon, and I didn't end up losing anything when I decided to go mobile, but I know that this isn't the case for everyone and leases etc can be hard to get out of if you find it's not for you.

Best of luck with whatever you decide - there are nice things about both - it's just deciding what is right for you now.

Choccy xx
 
#17
Hi
I made the jump and got my own salon after having a room. It was great having the freedom to choose my own style / products etc to have in the salon etc. However, the hidden costs were far more than I had initially expected, and the difference between having one room and a salon is that people expect a salon to be "open all hours", when it's just you and a room you can be more flexible and people understand that it is just you - they aren't so understanding when you have shop premises and think you should have therapists just waiting for them all the time!.
I got no rent rebate at all so paid full rent from day 1. I did get small business rate relief but it did not cover all the business rates (less than half) so I had to pay the difference. The cost of overheads are quite high for a salon -

Rent/lease costs
Business Rates
Insurance - treatment, product liability and public liability
Phone line rental and calls
Mobile phone (if you use one for business)
Rubbish removal (no domestic waste service as it's a business and that has to be paid for).
Repairs/redecoration of the salon every few months to keep it looking fresh.
Window display materials (if you change them regularly).
Prs licence for music
water rates
gas and electricity
card machine
Cost of someone to cover reception while you are doing treatments or to employ another therapist.
Product and consumables cost, and cost of products to retail (though you get retail costs back it's not always straightaway).
Laundry cost (it adds up to more than you think if you are busy)
Printing/design costs - for price lists, appt cards, loyalty cards etc - which you will get through thousands of (I thought people were decorating their walls with my price lists I got through so many of them!).
I know some of these can be small costs in themselves, but when you have a salon and add them all up week in week out before you pay yourself a wage it does make a difference.

While I wouldn't want to put you off I decided that after having my salon for a few years that I would return to being mobile and working from home as it was more flexible for me - and my lease was up for renewal - and the rent was put up (because I was busy!!!) and i'd had to have signed for a long time (very tying). I make more money for myself now (much lower overheads) and I can choose my working hours.

If you want a salon go for it, but it might be worth asking yourself the pros and cons of having a salon and if what you are doing now suits you more or not. I was very lucky and had a busy salon, and I didn't end up losing anything when I decided to go mobile, but I know that this isn't the case for everyone and leases etc can be hard to get out of if you find it's not for you.

Best of luck with whatever you decide - there are nice things about both - it's just deciding what is right for you now.

Choccy xx
Thanks for you advice x
 
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