New salon

[Nemo]

Hi Geeks,

I've been building my client base for almost 5 years now. I rent a room and have 7 self employed beauty therapists working with me. We do a % split.

The opportunity has come up to rent a real shop, my own front door and everything!
The costs are crazy and we're looking at £36,000 per annum to cover the cost or rent, rates, service charge, booking system, electricity, water, internet, cleaning etc. That's all in.

I suppose what I'm asking is, am I mad!!!? That is crazy money for just out. It's not London or a city centre.

Any advice?

 

[Beautylush]

Depends how much your taking? I rent a room and a desk with 2 employed staff, products, system etc for £1500 a month! I would expect double for my own salon.

 

[KHS]

You need to look at your income. Are you fully covering more than 3k a month? That's the figure you need to look at.

Look at what are you paying out now? How much profit is left over? ETC.... After your 3k monthly outgoings for salon overheads you still need to buy stock.

Do you have predicted quiet times like January and or October for example? They need to be taken into account too. Can you cover 3k plus profit in those months?

 

[SalonOwnerHello]

Hi,
1/ What is the length of the lease? Make sure you get a break clause. Try to get two break clauses.
2/ Lets say your income dropped by 50% in the new venture. Would you still be able to cover the bills until you could execute the break clause.
3/ Whose responsible for building insurance? Can be a bit of pain..
4/ Can you get an option to buy the building. This is what i did. Executed inside 3 years and have now completed.
There will be additional legal costs if you get this option.
5/ How many floors do you have?
5a/ What are the possible uses for additional space?

5a is the key to selecting premises for ANY small business so you don't have to worry. i.e. get somebody else to pay your bills.