Renting a salon

[kizzycat]

Hey geeks
I have the opportunity to rent a salon. It is already running and furnished as a salon and this is all I know about it. I have no idea why the owner is moving out or anything. I have never owned my own business and I'm not a hairdresser. I would like to rent the salon and either keep the stylist that is already there or if she is leaving take on another stylist. Am I completely mad for even considering it? I am going to ring the letting a agent tomorrow but what questions do I need to ask? Would I be able to ask to see her books or is this only if I was buying her business? Some questions I have thought of are
Why is she giving up her lease, is it because she is retiring or moving away or is it because she can't get the clients. If she can't get the clients how much advertising has she done.
Would the staff want to stAy if so are they hourly rate or renting a chair (not sure which would be best)
If the staff are staying what happens if I don't want to keep them on?
What is the competition in the area
Any advice would be gratefully received.
Or maybe I have been watching too many episodes of tabithas salon takeover lol

 

[persiasalon]

You will want to see detailed accounts for the last three years. How much she spends on stock per month, profit margins, percentage of repeat trade, percentage of walk-in trade, social media presence, staff turnover, etc.

 

[squidgernetball]

Also, what remains on the lease, and how long you are tied in for - these are your break clauses - I have a 2 year and 4 year break clause (I can get out after 2 or 4 years) and the landlord has a 4 year break clause, meaning he can chuck me out after 4 years. What other expenses are there apart from rent, such as electric, heating, rates etc. All sounds very exciting!!! Good luck x

 

[stuck123]

hiya ive just read your post and your questions answered have also helped me. however im still searching for a salon preferably all ready furbished for me to take on, including staff and an existing clientele. can you help me to towards stepping into the right direction please. thanks

 

[kizzycat]

Thanks for the replies. This is what I Am unsure of, can I ask to see her books if I am not buying her business, I am only renting the space that she used to rent

 

[persianista]

Thanks for the replies. This is what I Am unsure of, can I ask to see her books if I am not buying her business, I am only renting the space that she used to rent

Not really. As you quite rightly say, your not buying anything from her.

 

[squidgernetball]

But you can ask....

 

[kizzycat]

Thanks girls, I was thinking both of those answers lol.
Im pretty excited and trying hard not to jump in with both feet even though I have not even been to see it yet! Ive already got the decor and name picked out. Need a reality check I think.

Have to keep putting it into perspective of how much it is going to cost. Yes it is decked out as a salon but I am sure the current renter is not going to want to leave her furnishings for free, after all why should she, she had to pay for them to be put in there. I am just wondering what would be a reasonable guestimate. Also if she has stock ie colours etc, would it be good to negotiate those with her (if she was leaving them), also the same with shampoo/conditioner etc.

I am getting ahead of myself here a little bit I know, but I am just thinking of a few scenarios. If the place is going to be left without any stylists, how on earth do I go about finding the right hairdresser? I have no hair background, only beauty.
Second scenario, a stylist wants to stay on, what do I do? do I make her do a trade test and make sure she is the right fit for the salon - and what if she isnt ! eek

Can you tell Im a little bit excited? Really jumping the gun

 

[beckybud]

Hi Kizzy Kat I've recently done the same thing, i have no training in hair or beauty but I have in property renovations. I got a run down massage shop and started knocking walls down! But as I have no training, every person working in the salon is self-employed, I've got a beautician, nail tech and 2 hairdressers on weekly rental agreements and we're opening up in 3 weeks, if this works out it won't be long before I'm looking for my next project I'd say take on self-employed if possible, the existing salon won't matter, it'll be what you make it, so don't worry if you can't see her books. Good luck x