Is it worth setting up a business with the credit crunch

[jenny2]

Sorry, bit i need to no as this is a big thing for me and my family, there is compertition were i will be and as in some of these threads i have read people just do not have the money and things are gonna get worse. Would i be better just waiting and getting another job so to speak.
Funds are really ltd and this would be a last shot to bring some money into the home.
Have put fliers out for mobile offering everything i do at very cheap prices and not one phone call, so is that telling me something or should i just go for it. The premises are above a tanning shop, would be taking on a three month lease to start, there is three other salons in the area, but have been told they got bad rep, not sure how true this is, one of them was in the room i am going into, comes from a big beauty hotel, and has a nail tech and is doing dermoligica faciels, a product range i could not afford at the min. Please guys honest opinions
love jenny

 

[number1kitty]

go for it! People will always need and want beauty treatments. Just make sure though you do a good business plan so you can work out what you need to make before you take a profit.

I set up my first salon above a hairdressers and spent the best part of £10K and was easily taking £2K a month. However I plunged this back into the business as it was a hobby for me really.

I then moved to another area and set up on a £2K in a hairdressers and was again taking £2K a month so its easily enough done. However you do need to plunge money into advertising.

If you cant afford to do facials with a decent range then dont offer them yet. Your main staples are waxing, nails, tanning and eyelash/brow treatments. Quick fixes that clients want. facials etc are costly to incorporate into the business and they are deemed a luxury too so in the 'credit crunch' panick this is the first thing people will stop having. Nails and waxing are things that the client will still find the money for.

Look at how busy your competitiors are though by calling them and seeing how soon you can get an appointment. I used to ring and ask for an hour long treatment on the day of me calling. If all the competition can fit you in and give you a choice of times on that day that will answer your question that the business isnt there. If they say they cant get you in then see how soon they can. obviously dont book the appointment and just say you will call them back but its good to get an idea of how busy you could be.

If you really cant afford to take the risk or invest the money and you need to guarantee an income every week to live then maybe you should for now work for someone else, but I have set up 5 business's and they have all made me money but everything in life is a risk.

Good Luck with your decision

Kate

 

[jenny2]

thank you chic, i have just rang the salons there one is shut for the bank holiday, the other is full booked till next tue, and obviously the other would be me so to speak. have pmd you
jenny