Realistic Rent charges & overall advice

[Nat Tov]

Hi all, I recently posted a thread ref whether now was a good time to set up in business what with the current financial situation etc and alot of people advised now is not good and to hold back because it's hard work getting the clients to begin with and obtaining a profitable income to pay everthing may be a struggle. (ie; Hse rent, bills & salon rent on top!)

The thing is I have taken all comments on board believe me but my heart is ruling my head. I'm 32 this June and qualified in NVQ3 beauty last summer, nail trained since 1997 and although I have had lots of models for nails, waxing, facials etc I need to do this to get it out of my system. Positive thinking - I CAN DO IT... lol

I have found a room within a local salon and I'm meeting the salon owner today. He has had previous Therapists in there - some un-successful and one very successful (don't know why she left but i'm gonna ask!) I wondered what you all thought was a reasonalbe room rent? I'm hoping my current employer will allow me to drop from full time to 3 days a week leaving me available to offer beauty Tues,Thurs & Sat. I think there maybe equipment in there already - i'm not sure.

Can any of you give me some urgent advise on things to ask? What is a reasonable charge for the room - after all I need to make money too. I have compiled a spread sheet of all the local salons prices and it gives me an 'average' on costs. Interesting and has made me aware of what others are and are not offering. I'd appreciate all the feedback out there so I go prepared this afternoon.

I currenlty feel alittle alone as my family think now's not a good time but where I currently work I reach target Sales of £2200 a week - there are people out there wanting to spend and I do loads of mailouts, advertising, recalls etc to get this so have alittle knowledge of the marketing required. I know I keep saying this but I really would appreciate all comments.

 

[daisyl]

I would say actually a recession is a good time to start a business - gives you the 'worst case scenario' so to speak, on which you can build. (obviously depending upon your financial situation).

It will not be easy though - I don't think you will get any way near your previous target sales figures to begin with - for quite a while. The key is location - I have no idea of the area you are going to be in. If you will be relying on an income initially, I would suspect it is going to be very hard. They do not come flooding in. It takes a long time to build a client base, at least 12/18 months or even more. But it will be your baby - and that is what keeps you going.

Realistic rental is very hard to assess, it is dependant on so many factors. It really is impossible to give you an accurate rate. I know of therapists who pay £50/week for a room and other who pay £250/week!

If your heart says go for it - then grab it and go with it! But be prepared to work really really hard at it for little return in the first instance. I am finding that even though there is a recession - people are cheering themselves up by having pampering treatments. In my salon I offer a pick & mix offer which is very popular (an idea I got from fellow geeks)! I think you have to have something to bring clients in without selling yourself short. I wouldn't get involved in undercutting other salons - makes you look cheap - but obviously you don't want to be hugely overpriced according to others either. I hope that makes sense.

I wish you all the luck in the world. Keep positive and be enthusiastic, doing something you love for a living is a rare thing! XXX

 

[joe90]

I agree with Daisyl, although people say not to open a new business in a recession, we have found that so far (and we are only two weeks in) our business is going fantastically well and much better than we thought it would be. Even though I had clients before at a hair salon and most of them have followed me, we are getting at least 3 new walk in clients a day. Having looked at our books for the last two weeks less than a quarter of our clients have been existing ones, so it can work.

Having been above a hairdressers for 3 years, I felt that because of the salon itself, it held me back. Make sure that the salon you are thinking of is in a good location, it is fairly trendy (the one I was at wasnt).

also ensure that your landlord will allow you to put up your price list in the hair salon, advertise with posters in his window, have an A-frame outside etc etc as these are things that my landlord really didn't like me doing.

Good luck with it.

 

[Martin Duffy]

I rent out two rooms but only charge £5 an hour, partially because they're friends & also because being chiropractors & podiatrists they supply everything themselves. The rooms have a couch in etc, but they provide couch roll, tissues, towels, use their own phones, make their own bookings etc. Where I have worked in the past I have also rented space on a % basis, giving the salon owner 50% of my takings, but she provided reception, towels and everything else. A lot will depend on the location of the salon & what you are getting for your money.

Agreed about the recession, I've been busier than ever the last few months, and my retail sales are fantastic. Ultimately it's about the business model, if you are providing what people want at a realistic price & they know about you then you can't go wrong!

 

[hippy-chick]

What you have to look at is how much can you afford to pay out each week if you weren't earning anything.

I think £50 is affordable.

Remember you have school holidays, annual leave and sickness to take into consideration. I take 6 weeks off a year, so am already £300 out of pocket, I have minimal help with childcare, so work minimal hours over the school holidays.

If rent is £50 and I charge £25 per hour, it means I have to do 2 appointments to cover my rent before I am in profit.

 

[persianista]

when i have rented out rooms in my salons in the past, I generally charge around £100 per week. there is normally no discount if the room is not used for the full six days as the salon cannot use it for anything else.
I think the worst of the recession is over, all my salons have picked up.