New business!!

[ShellX7]

Hi guys,

I'm new to this site so not sure if I'm doing it properly I'm looking into starting a new salon this will be hair and beauty problem is I'm not a beautician or a hairdresser. I would obviously employ staff but would just like to get some ideas on wether I'm investing in the right thing! I have a good knowledge on both industries. However, I feel I may be underestimating the start up cost! I've found a great shop with cheap rent and rates which I would have to build from scratch. I'm in need of rough estimates on how much insurance, solicitor fees (only my own), stock/products etc will cost me!?? Also would love your opinion about me doing this...am I being crazy???

 

[Violet Star]

This is something you really do need to think about seriously as its a big step and im sure allot of money involved. I would really really suggest for you to have some training yourself as this would help you a great deal!Or even some product training or a business course.

I have been in the beauty industry and nails for 2 years and ive come across a few opportunities to buy a salon but ive had to hold back (as exciting it is) because i would rather complete all my training and build up a client base for at leasr 3 years before i even consider opening up a salon.

Especially now with the credit crunch its a hard time for most of us you need to check out competition in your area and pricing of other salons in your area.

I cant really tell you how much insurance is etc and product costs.

Really have a big re-search and have a big think as its not cheap opening up a salon and buying products and paying staff.

hths

 

[chazz!!]

hi this is a very big step iv been a beauty therapist for 4 years and was thinking of opening up my own salon too but have decided to wait till the recetion is over. the problem i see with you not being a beauty therapist yourself is that you will need to have really exsperienced staff to make up for your lack of exsperence you will need to be paying someone to act a maybe a sort of head therapist someone who the other therapist can go to if anthing in their treatment goes wrong as you wont be much help. and good exsperenced therapist wont wont to be paid minimum wage adding to your costs.
as far a wot products cost it depents wot company you get its worth while ringing around a few popular ones ie dermalogica decleor darphin, for skin care opi jessica nails to get an idea also another cost is if your therapists have not used the products before they will need extra trainning with is usually free with the company but you will have to pay the therapist for her time and travling exspences.
also check wot products the other salon in ur area are using you dont wont the sdame as everyone else.

 

[sam28]

I have a good friend who opened a hairdressers and put staff in to run it, they stole from him left, right and centre. I have also opened a beauty salon last June and just closed it due to the current climate. I'm not trying to be the grim reaper, just get all your figures etc together and make sure you have a full time presence in your salon. I am mobile now and it works for me. If you are looking at just investing money I would probably look at something else being honest, or put your money in a savings account until the financial climate changes a bit. Is beauty/hairdressing something you personally want to get into, or a way of investing some money ? xxxxx:hug::hug:

 

[ShellX7]

Thanks so much for the ideas I agree with all of you. Especially the bit about me getting a qualification! I may go ahead with this as just a hair salon at first, untill I qualify! Good point about the staff stealing, however my sister and best friend will be the stylists so I should be ok in that aspect. I don't want to lose this location as it seems so perfect and due to the recession it's very cheap! There are also no other salons in the area!! Although I feel crazy for doing this I also feel like I'd be mad to miss this opportunity!

 

[angelina221]

I opened my salon with no qualifications.
I did do a home study course though. it was for beauty up to level 3 and i studied using the NVQ books. Obviously this wouldn't have given me a qualification but it gave me an insight into the business and gave me some knowledge so that i at least knew something about the business.
Since opening i have trained in; spray tanning, waxing, intimate male waxing and eyebrow and lash tints.
Yes i have had staff steal, be off sick etc...
No-one is going to put as much into your business as you so it is better that you can at least do the main treatments for when you have staff off sick etc...
I wouldn't want to do all the treatments as there are things i know i wouldn't be good at ,namely manicures and pedicures 1-i hate feet and 2-i can't paint nails!
I think if you have a passion for it and you are willing to put 110% into it then it can work.
You need to make sure you have enough cash to see you through the first year and you need to make sure you take everything into account when budgeting your start up costs. It ain't cheap!!
Yes it's hard work and stressful at times but it's also very rewarding!
Good luck!

 

[ShellX7]

Thanks for your last comment! It has made a few things more clear for me and it's quite comforting to know there's others who has started off in similar positions and is doing well!! All the advice is much appreciated!:hug:

 

[seedee]

Its not easy but if your passionate it will work do lots of lil courses, promotions and build up the clientelle and it will be very rewarding!

 

[leonnib]

im opening one in the next 2 weeks. i dont have beauty qualifications but have mangerial and business ones. i couldnt resist the price of this shop its £150 pw and its already fitted out so only have to get a few bits.

i will do some courses though. to have an understanding of what my staff are doing.

i suppose it depends if you wana take the risk or not but id rather take then wonder what if?

 

[Saya]

Hi, I was in your boat, or kind of still am?
I don't know how to find them but I think you'll find some of my previous threads very useful.
With no beauty skills and only my business skills, I went ahead and brought a brand new shell and core unit, I fitted it out too. Being by the City of London, the rent was very high, however I was confident I could easily cover it.
I also thought that I must secure this unit as it is in the best location with no competition, it felt like a now or never moment.
I planned to bring in staff to run the place, so that I could go back to paid employment.
Throughout the whole process, i was bombarded by unforseen obstacles, one after the other. My running costs and contigency fund were gone before I could even open. I had no money left for marketing and some equipment was still outstanding.
Then when I opened I had staffing problems, so I had a salon but no staff.
Then when I had staff, I just about had enough customers to pay their wages.
Eventually, I took the threading course and was able to serve threading customers myself.
I still needed to complete the other training, so was still turning away waxing, make-up, facial etc customers.
It was all too little too late.
I got repossesed 2 weeks ago for not being able to pay the rent.

I now realise that even if it is a valuable opportunity, it is not your opportunity unless you can fulfill the resource requirements to see it through.
I deeply regret not qualifying and going mobile first.
I am now on the Beauty Therapy level 2 course as well as working mobile, hoping to raise more money, whilst gaining more skills and gaining a client base.
I can still get the unit back, but at least now I can prepare myself before getting it back.
I am relieved that I do not have that ridiculous overhead nor having to give every penny I make to someone else.

I wish you good luck with your dream, just remember not to get carried away by them and make sure you are realistic about your figures.
(don't forget to allow for health & safety requirements, insurance, licences, waste management contracts, BT set-up etc, no really, do not guestimate! get actuals, lol)

 

[persianista]

I really don't want to sound negative or stamp on your dream, but a cheap rent is the least of your worries. Setting up a salon is bloody expensive, I budget at least 100k to cover the first year. You will not be able to draw salary for at least 2 years I promise you.
I really have done it a few times and frequently help out other salon owners that have struck problems. Lack of cash and not understanding the industry are the 2 main difficulties people come up against.
Please do a business plan and speak to your accountant in depth about whether or not your business plan is realistic and viable.
Go into this with your eyes wide open x

 

[leonnib]

you are the only person who can work hard enough for it to work....but if it doesnt at least you tried..
obviously make sure you have enough to cover rent etc every month.
if you rent chairs it gives you a more control of how much you got coming in.. so if you have two chairs you can rent out one etc

good luck :lol:

 

[Sheer Beauty]

Hey there,
don't despair. I started out just like you. i took over a salon from a lady who was moving interstate and she hired the staff for me. However, i feel the first thing you should invest in apart from stock and qualification is in how to train, lead and motivate your staff. If you don't do the beauty treatments yourself you need to make sure that the standards is what you expect when you go to have a treatment in another salon.

Apart from that my first year felt like i was drowning but you will get on top of everything and grow from the experience. At the end of the day I learnt how to do beauty treatments because you need to have a back up in case your staff falls sick so just be prepared and having some beauty treatment knowledge might save your salon in the long run.
:smack: