OMG ive got a dilema I need advice please!

[Lavander Rose]

Hello everyone

Can anyone help or advice me please?

I am renting rooms above a hairdressers which I opened up febuary this year, and upto now ive been doing good, last week and this week so far has been a bit crap but i put it down to this time of year.


OMG today I was told that I would have to be out within a month as the hairdressers are basically pulling the plug on the hair salon which basically means im going to be without a job.

Im so angry and fed up because i have not long signed a new contract with the owners and still have 6 months left.

Can anyone advise me what I should do or what i can do.

I would like to buy the damn business myself but dont think I could stretch to the full asking price and I would keep the staff which works in the salon on as there a good team,

which is another thing the staff dont even know yet ive been told to keep the lid on things

oh what am i going to do :cry::cry::cry::cry:

 

[sknight]

Hello everyone

Can anyone help or advice me please?

I am renting rooms above a hairdressers which I opened up febuary this year, and upto now ive been doing good, last week and this week so far has been a bit crap but i put it down to this time of year.


OMG today I was told that I would have to be out within a month as the hairdressers are basically pulling the plug on the hair salon which basically means im going to be without a job.

Im so angry and fed up because i have not long signed a new contract with the owners and still have 6 months left.

Can anyone advise me what I should do or what i can do.

I would like to buy the damn business myself but dont think I could stretch to the full asking price and I would keep the staff which works in the salon on as there a good team,

which is another thing the staff dont even know yet ive been told to keep the lid on things

oh what am i going to do :cry::cry::cry::cry:

OMG what a nightmare! I think if you feel like you are in a good place in your life to handle the business then it can't hurt to go see a financial advisor and see what your options are? I hope you get it sorted. :hug:

 

[AndyP]

Lavender rose, first thing don't panic and view this as an opportunity. You need to find out the reason they are pulling the plug on the hairdressers and what it would take to stop them. It is complicated and there may be lots of different reasons but no one in their right mind would just walk from a viable business, so on the surface you may think it is viable but really it is not - i.e. the rent might be huge etc. You will need to understand if they own the building or just rent it, do they owe lots of money to the landlord, are they a ltd compnay or sole traders as all this will affect the decisions they ae making about walking away. You mention you can't afford the asking price, if they are walking away there may not need to be an asking price. If you want to pm me and not wash your linen in public i will do my best to help you.

Andy

 

[collin]

Hello everyone

Can anyone help or advice me please?

I am renting rooms above a hairdressers which I opened up febuary this year, and upto now ive been doing good, last week and this week so far has been a bit crap but i put it down to this time of year.


OMG today I was told that I would have to be out within a month as the hairdressers are basically pulling the plug on the hair salon which basically means im going to be without a job.

Im so angry and fed up because i have not long signed a new contract with the owners and still have 6 months left.

Can anyone advise me what I should do or what i can do.

I would like to buy the damn business myself but don't think I could stretch to the full asking price and I would keep the staff which works in the salon on as there a good team,

which is another thing the staff don't even know yet ive been told to keep the lid on things

oh what am i going to do :cry::cry::cry::cry:

Firstly your going to and view this as an opportunity:idea:

I assume the owner is closing because of viability issues rather than personnel/family issues.

If this is the case...why would you want to buy it??? of course there is an opportunity for you here to maybe take it over if you feel confident that you can not only fund the initial acquisition but the early days of trading also(that can be quiet an investment)

Just be careful though because if you do take over the business and take over the staff you will also inherit the staffs length of service entitlements which would be counted from the date at which they first started working at the salon.

Why not indicate to the owner that you might be interested in taking the salon over...tell them this is subject to contract and a full due diligence exercises and make it clear from the offset that the consideration payable will be made up of two elements having agreed an amount
1) payment on completion for all the assets
2) The goodwill element of £xxx will be split.....60% will be paid on completion and the balance (interest free) will be paid in line with a formula and term you agree which follows the profitability/turnover of the business

Make sure you make the purchase through a firm of solicitors who will produce a contract which will best protect your position.

Just remember....I suspect the salon owner is packing in cos the business isn't viable...this puts you in a strong position to negotiate a good purchase price and payment scheme that enables you to buy the business without having to make a substantial upfront payment.

There are many many acquisition matrix's you can use when buying a business and there are no fixed rules as each one is completely different.

Of course if you decide not to buy the buisness...well there are many many opportunities for you to set up as a mobile,rent a room or open your own salon from scratch...many options which can be achieved dependant upon available budget.

Either way..try and look at this as a positive opportunity kind of thing...you will be amazed at what you can achieve and where you can go with some determination,grit,good advice,luck and positive thinking...what might today seem to be a negative situation can quiet easily be turned into a positive opportunity for you :hug:

 

[Lynne Baker]

What does it say in your contract about early termination?