I would start off by making a budget for everything and shop around as much as possible so as to minimise cost which will mean you will hopefully be able to reduce the amount of loan required. Here are the areas that you will possibly need to include in your budget:
Rent/Lease: Try to negotiate the rent with the landlord. There are a lot of commercial units empty all over the country due to the recession so it is dog eat dog between landlords at this moment in time. If you don't ask for reduced rent, the landlord certainly won't give it to you! Ensure you get a lease in place before you start spending any money. If the landlord were to pull the plug on you, you could end up out of pocket. I would get a lease of less than seven years as you will be exempt from stamp duty. If you are not sure how long you want on the lease then get it drawn up to suit you. i.e. if not sure of 2 or 4 years, then get a 4 year lease with an opt out clause after two years put in the lease. Be also wary of other charges applicable in the lease before signing (i.e. insurance rent or service costs).
Loan/Interest Payments: Sounds like you will be going for an unsecured personal loan. Don't go to just the one bank for this. Have a look around for a good deal on the interest rate. You might also be eligible for a grant to assist you in your venture. Either from your local council, central Government or an independent body such as the Prince's Trust. Look around and always read the small print.
Refurb Costs: No doubt you will want to revamp the property and stamp your mark on it. I shopped around on prices for paint/wallpaper and decorated my salon myself. If you need any other improvements that you might not be able to do yourself (flooring/carpet, false ceiling, plumbing, electrics, studded walling etc..) then get at least 2 quotes for each job and ensure that the workers are suitably qualified, if applicable.
Furniture & Sanitaryware: Work out how exactly what you want in your salon then look around on the internet/catalogues for prices for each item. When I carried out this exercise I was always balancing cost against how good something seemed in quality and looks. After a couple of hours looking you get a feel of the maximum you should be paying for an item. I looked quite a bit at Ikea and ended up getting a few items there as they are good value. You also may need to budget for electric radiators if the property doesn't come with heating.
Shop Signs/Printing: You could design your own logo/shop colours or bring in someone to do it for you, which will cost. Once decided then again approach at least two companies for quotes on this. Things you might want printed may include: Flyers, Price Lists, Letterheads, Compliment Slips, Business Cards, Appointment Cards, Loyaly Cards. You could do some of this yourself or find good deals for indvidual items seperately from your main printer.
Stock: Work out exactly what you need/want to have in the salon for when you open, shop around and price it all up. You might need to look at this from two perspectives as there are two types of stock. (1) for salon usage and (2) retail stock for selling to customers.
Sundry Items: Allow in your budget for items such as cups, saucers, teaspoons, cleaning products, till roll, loo roll, tea, coffee, sugar, soap, vacuum cleaner, dustpan, brush, magazines, stationery, towels, wall clock, appointment book, phone, answer machine etc..
Legal Fees: Budget for this as it would be advisable to have a solicitor working on your behalf when agreeing on the details in the lease.
Insurance: Shop the market for this. The buildings insurance may be paid by the landlord, but find this out. I would also get yourself contents insurance and liability insurance in case a client tried to sue you.
Business Rates: Find out the cost from the landlord but do also check it. Look on the website of the local council and ensure they have gotten the surface area correct. Also check how much other shops in the vicinity are paying per metre square as you could have grounds to appeal the rateable value if your property is more. Most importantly though, if you don't rent or own other commerical property or are renting a very large unit, then make sure you get small business rate relief which knocks 50% off the bill!
Electricity/Gas: An energy company can only tie in a business or individual into a contract, so you start here on a clean slate. If the existing energy company tries to say anything to the contrary then tell them to get lost. My last electric contract ran out fairly recently and I shopped around to find npower was the best value commercial energy supplier in my area. Carry out the same exercise as we live at opposite ends of England and it really does vary from one area to another.
Water Usage/Sewerage: Allow for this in your budget. Look on the website of your supplier for details of costs.
Highways/Surface Drainage Water: Same as above but with this one also check your water supplier has placed you in the right band. The band is based on the surface area of the property, so measure it and then check online. After I bought my salon, it took United Utilities just over a year to agree that their information was incorrect. I didn't pay their invoice until they got it right. If I hadn't checked and spotted the error, I would have unknowingly paid an extra £240.
Bank Charges: If you open a new business account, then most banks will give you 12-24 months free banking. I changed the name on my business account just before the period ended and for some reason they made me open a new account! I was initially annoyed, but the result was the bank restarting the period of free banking from scratch on the new account.
Card Machine: Budget for this and again shop the market for all possible options, should you wish to allow clients to pay by card.
Advertising: If you are going ahead with this and want to get in the 09/10 yellow pages then get your skates on. Look at other possible areas you may wish to explore with marketing your business and allow a suitable amount in your budget.
Wages: Factor in a salary for yourself and other employees, if not going solo. Also inform your local tax office of your change in self employment and give them the name, address etc.. of your business. You probably won't be liable for tax in the first year as it is likely that your setup costs will be greater than your turnover thus meaning no profit. If not paying yourself a salary to start with and you wish the tax year to count as a qualifying year towards your state pension then ensure you sign up for Class 2 National Insurance Contributions, which are currently £2.30 a week, which you can pay on direct debit every month. Also, if not drawing a salary to start with, pay yourself under the threshold of your personal allowance and 'loan' it back to the business. Its more tax efficient in the long run.
Accountants Costs: If you won't be doing your own books then you'll need to allow for accounts and payroll costs.
Website: Factor in if you plan to have one for your business. Look around online as you can reduce costs by doing your own site.
Phone Charges: Shop around on call charge and line rental costs from different suppliers and allow for in your budget.
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I just had a quick look through the nominal ledger on my sage accounts and I don't think I missed any items that I pay for in my salon.
To help your business, you could also try to increase turnover by renting space, employing others or having other stylists/technicians working on a revenue share basis. Bear in mind that this will also bring you added responsibility.
Apologies if I made it possibly seem a bit daunting but I wish you all the best in your venture!
