leasing a new salon- advice please

[Eliza Doolittle]

Hi, I have searched the threads for hours and days, but cant really find anything specific to this (sorry if I repeat myself!).

A sunbed shop has become available in my hometown and I would LOVE to set up my beauty salon in it! I have spoken to the leaseholder and he gave me a weekly price he wants. I know this is a longshot, but I was wondering if anyone can give me a rough example of total monthly outgoings for a building alone (excluding products), telephone, electricity etc. It has the potential for 2 small beauty rooms to be created.I am a part time freelance beauty therapist at the moment and only have a small clientele.

I have an appointment with the business advisors next week to sort out that side of things i.e business plan, market research etc. I would need to borrow money as I dont have any savings. I have doubts as to whether I can 'afford' a salon or not. Then again, lots of people start out like this, dont they..........?? Sorry this is a long one, but Im sure some of you will pass on your thoughts and experiences. Thank you very much!

 

[loubylou]

Rent
Business rates
public liability insurance
salon insurance
buildings insurance
water rates
gas
electric
window cleaner?
milk man?
accountant
tax bill (good idea to put something away each week)
national insurance
advertising
telephone
performing rights licence (for using a radio)
that's all i can think of for now off the top of my head, as for the cost of each i cant tell you as it is different in different places hth

 

[cherrysoda]

Umm yep i think u covered it all loubylou!!!

How much did the landlord say he wanted for the rent??

 

[thebeautybank]

Please also remember that the landlord lease holder may require 3 months rent in advance as deposit and there is normally a charge for building insurance which the landlord will expect you to pay which could be around £500 a year. Better to try and pay your electric and gas bills with monthly payments as this will allow you to budget about £30 for each but before you commit check that the supplier is the cheapest one in you area rates can also be paid monthly depending on your area about £70 a month then liability insurance and contents cover which must include cover for windows doors etc it starts adding up to quite a lot i know but do not get put off its well worth being yur own boss.

 

[Eliza Doolittle]

Oh thanks everyone! It all seems quite overwhelming! There is a lot more to think about than I first imagined!! The landlord wants £85 per week as a lease. Is this good/bad?? Is it possible to do this without a clientele (well, a very small one) or any money behind me?? - I suppose it depends on my market research (that I still need to do) to find out if a beauty salon is 'needed' in the area. thanks x

 

[cherrysoda]

£85 isnt bad at all if its in a good location. My first Salon was £450 a month in rent and like i said before we still made enough money for 2 sets of wages (we were doing sunbeds as well as beauty and nails tho)
It is overwhelming but your busines advisor wont tell you to 'Go For IT' if he thinks your outgoings will be more than what you take!!
It will be a struggle at first but its well worth it in the end!!:green:
xx

 

[bohemianbeauty]

For a salon £85 is a good rate to pay, instead of a business loan depending on your credit history you might be better off getting a personal loan - these can go upto £20,000 only - I shouldnt think you need more than that unless you are going all exquisit which is not a good idea to start with.

I am in the middle of gutting my premesis to open up on Thursday and get the legal sides sorted. To start with I am getting what I need not what I want and my budget hasnt gone over £15k, and thats for sunbed, all beauty and nails - equipment, furniture, building work (I have had a spray tan room built and ventilated, a beauty room partitioned, the floor levelled off and a platform built for my huge sunbed), decorating, advertising, insurances etc

As for market research I have done my own, I am in a village and only 3 miles out from the town centre and like you have only approx a regular £200 weeks worth of customers to follow me, but its a start. There are 2 sunbed shops which do nails and beauty within a 1/2 mile radius of me and my parking isnt the best either (BIG FACTOR) but I am confident, more qualified and will offer better customer service in a well presented, non threatening salon at the same or cheaper price (to start till my reputation increases so then will my prices slowly). What I did was went and worked in the closest salon whilst I was setting up my own to find out how they work and get the customers in the village used to my face and see if they had money and find out what sells in this area - crafty and not too nice to the owner of that salon but at the end of the day business is business.

I wish you all the best and think you should go for it, if you dont try will never know if you will fall or fly.

 

[Saya]

hmm.. interesting..I think I should go find some work experience at a similar salon, before i take their business away too ; )

£85 a week does sound great, but of course it has to be reletive to it's location and how much your neighbour's rents are.
It has got me thinkiing though.. i'm about to pay £800 per month for a brand new unit in London (actually it £1600 per month, but I'm subletting ha;f of it out). This space is capable of accommodating 4 hairdressers...is it worth it?