Monthly outgoings for renting a salon?

[jodipodi]

Please be gentle and correct me if im posting in the wrong forum here.....have tried putting it on search but cant seem to get the answers im looking for so any advice would be appreciated.
This is probably a varied one but here goes....with regards to having a salon,be it petite or huge,what are the outgoings that are regularly paid out each month? Not necessarily cost wise (although some ideas would be good), but more so along the lines of itemised ie; gas, electric, rent...etc. Im very very new and certainly dont have the faintest idea of what having a salon entails but would love to know the basics of renting a salon. Would like to rent when I am up to a professional standard, providing spray tanning (and l&p nails when qualified).
Just keen and a thirsty for knowledge:green:
Thanks guys x

 

[lotus blossom]

rates
insurance
vat
pat testing
fire extinguisher checks
prs licence
stock
gas/electric
phone
rent
ermm just a few i can think of so far hth x
hone
water

 

[jodipodi]

Thanx Lotus blossom,that was quick...when you say rates what actually are they as i naively thought that was just another word for rent and what is hone!? Excuse the sheer dumbness....x

 

[lotus blossom]

like a business rates a bit like a council tax hth x

hone is actually phone lol

 

[jodipodi]

Ahhhh get it now, ha ha thanx hun...just like to get clued up about things as early as poss.....im a NOW NOW NOW kinda gal! xx

 

[jodipodi]

Is the insurance for a salon completely different to just public liability or do you mean that plus building and contents/stock etc?....x

 

[lotus blossom]

you will need insurance for your building , contents and your public liability

are you going to get your own place then?
maybe better speaking to a business advisor, as im only guessing a bit here mate x

 

[jodipodi]

Would love to but need to get myself alot more experience first. Already working with a company that supports business ideas and helps you along your way-ha told you everything is NOW NOW NOW!! Theyre really helping me and Im beginning to feel like i could actually go places with this, its my passion so i think thats an important factor,along with damn hard work! Your advice is exactly what im wanting to know so thanx alot hun x

 

[lotus blossom]

you are very welcome and good luck!!! go get em!! xxx

 

[urban-b]

Hi,
dont forget to include the little costs like.... magazines...tea...coffee...etc.
But remember, you can claim costs back when you do your tax returns... x

 

[jodipodi]

Do you know what, thats exactly the kind of encouragement that makes me think positively about my future... so thank you hunny xx

 

[jodipodi]

Yeah urban-b thats something you dont think about but I suppose it all adds up. Think itd be a little sad if clients couldnt have a cuppa and a good gossip mag ha ha- I know I cant go half an hour without my fix!! x

 

[Martin Duffy]

Hello!
I've recently set-up my own clinic so this is quite fresh in my head!

Rent
Business rates (the business equivalent of council tax without the benefits - I don't even get my bins emptied for mine!)
Insurance (public liability, contents & prof indemnity - you can get it all in one through a broker, mine costs about £50 a month, but my indemnity is seperate)
Water & electric.
Phone
Products & equipment lease.
Tea, coffee & magazines & soap (get through a lot of that!).
Bank/loan repayments (I don't have these thankfully!).
Card machine payments (if using one)

Can't think of anything else offhand. Then there are set-up costs including skin piercing licenses, fire checks & so forth. Hope this is of some use - I'll look at my accounts later & see if I've missed anything!

 

[jodipodi]

Thats brill, thanx Martin really helpful. Im just trying to work out income and outgoings on an approx basis,probably varies quite alot from salon to salon etc. Seems that alot of us poor geeks dont even make a wage for quite some time in this biz, just wondering -have you managed to make yourself any pennies for YOU yet?????!!!

 

[loubylou]

Thats brill, thanx Martin really helpful. Im just trying to work out income and outgoings on an approx basis,probably varies quite alot from salon to salon etc. Seems that alot of us poor geeks dont even make a wage for quite some time in this biz, just wondering -have you managed to make yourself any pennies for YOU yet?????!!!

When you take over a salon that has already been up and running you get to see their books,
from looking at their books you can see what the outgoings are each week/month for all the bills
and you can see at a glance all of the overheads that you would need to cover,
some companies will provide insurance for everything, salon, stock, employers liability, public liability etc and it often works out cheaper to do it this way.
You have to be prepared to be in a situation where you will not be taking a wage for at least the first year but working tax credits will help you to survive until you can take a wage hth

 

[jodipodi]

Thanx loubylou,I presume taking over a salon is a more expensive way to go I imagine you have to pay a hefty sum for someones actual business? Im thinking about a small shop rent where I get my hubby to fit it out as needs be...I can deal with a year or so without a wage,but would like to see a little of my hard earned money after that! How the heck do people with kids manage?
Could you explain to me how the tax credits work-I thought you had to be earning in order to qualify?

 

[Martin Duffy]

I made £1,600 for myself after expense in the first month, but although it's a new clinic I had been working self-employed 3 minutes walk away for 6 years previous (the place closed down), which put me in a safe position! That said, I only paid myself £500 as I want to build up a Summer reserve to see me through the winter & for big purchases etc.

 

[jodipodi]

Hey, wow I think thats alot in my little eyes!!! Id be happy with anything but something around £80-100 a wk would help us out a great deal and improve our standard of living at the moment. Just want to get by without the struggle all the time y'know. Does anyone know how the tax credits works if I myself am not earning (we recieve them now but on my hubbys income)?? Does anything change if these are the circumstances x

 

[loubylou]

Thanx loubylou,I presume taking over a salon is a more expensive way to go I imagine you have to pay a hefty sum for someones actual business? Im thinking about a small shop rent where I get my hubby to fit it out as needs be...I can deal with a year or so without a wage,but would like to see a little of my hard earned money after that! How the heck do people with kids manage?
Could you explain to me how the tax credits work-I thought you had to be earning in order to qualify?

ok hun tax credits,
in my situation i am a single person (no children) with my own salon, i work around 55 hrs per week (only needs to be over 30 hrs)
but do not take a wage yet so that entitles me to the full allowance on working tax credits,
you just need to phone them and explain that you already get tax credits from your husband working but you have an idea of opening up your own shop and you would not be taking a wage for at least the first 6 months,
then just ask them to do a calculation for you to let you know if you would be entitled to any more help,
they are usually very good at doing this for people hth

 

[jodipodi]

Thanx alot hun Ill do that,wont hurt to ask. Think we get the max at the mo like....desperado....ha ha xxx