Salon owner stressed and fed up, help!

[loulou2017]

I need advice or any ideas sorry its a long one.. I have built up a village beauty salon which has two rooms, it was a grotty shop before so lots of effort gone into it had it ten years and we are so busy and built up a great loyal client base and i was making enough money that I was happy to cope with all the cons of running it. I have always found it very stressful ( doesn't it make you laugh when clients say you must b so relax i think to myself I'm not the one on the massage bed!!!!!)and I don't think people realise the extra hours i put in leaflet dropping cleaning popping in on a Sunday to do jobs that need doing bookwork etc..i do all the cleaning myself cover holidays worry about staff being sick or leaving etc..
Anyway i have now had my first baby he is 4months and i love being a mummy but now I'm working three days a week doing treatments and I'm so unhappy i feel very stressed whilst I'm at work as i can see jobs that need doing and then when I'm away i feel stressed as you never switch off... I'm also now using our personal savings to fund the salon every week as on the days I'm not there earning by the time i have paid two therapist and reception there is nothing left. the over head are the same but taking a lot less. Good therapists are like gold dust as live in the country side so not easy to find staff.
i don't want to b stressed and low i would rather earn less and b happy i also don't want to work full time which i feel the salon needs to survive.
i have the opportunity to do beauty at home as we are building an extension atm it would have its own front door... i love this idea i feel a lot less stress and overheads and no more staff stress and i would only need a few clients to follow as only want to fill three days. i have 2 years left on my lease but my reception lady has said to me a while again she would like to invest in the business so i was wondering if she would buy it from me on the condition i take my own personal client the ones i have done forever how would i approach her as if she said no that cat is out of the bag that I'm unhappy. i also feel is it just the grass is greener and should i stick with it as i have worked my butt offt o get it were it is. thanks for reading really appreciate any advice xxx

 

[BannerPenguin]

Firstly, congrats on the little one

The business isn't profitable. If it takes you working full time to make a profit then something is wrong with the fundamentals. Overheads too high, wages too high, prices too low etc. All you'll end up doing is working yourself into the ground and not really earning anything. I think we all dream of getting to a place where someone else runs the business while you have your feet up on a beach somewhere collecting your profits... just me?... lol.

Did the receptionist approach you seriously or say it off the cuff? Reason being is on the face of it, you probably look like you're making a fortune and she just wants in on it. Obviously, if she goes through due diligence to buy it, she will quickly see this isn't the case. Does she seem the type to have a lot of cash in the bank?

There is a reason so many people work from their own outbuildings or just on their own etc. (which then causes staff shortage in the industry) and it's because it's stressful with sometimes not much reward running full on premises. This will give you a better lifestyle and in theory you can work as much or as little as you want as your overheads should be minimal.

I can't think of a way of speaking with the receptionist without the cat getting out the bag but hope someone else can chip in

 

[loulou2017]

Thank you for your advice,do you work from home im just worried to take that step as you cant go back once i have done it.Also worried although i have a very good relationship with my top customers im worried they like the salon experience ... although i would do my best to do that at home.
To be honest im not sure on the reception she just said she has a large amount of money but not big enough to invest in property so if i was ever interested she would be interested in investing i think she was talking more if i needed a loan to get bigger.. haha no thank you!!! Thanks feeling better for talking

 

[BannerPenguin]

Obviously, I'm not in the same industry as yourself (I'm a web designer) but yes, I do work from home. I make no secret of the fact. I have a bedroom converted to a full kitted out office. I've had premises before and gave them up as it was pointless having a shop. It didn't bring me any extra business just added the overheads so I've been there, done that.

You may lose some clients but you may gain new ones. The difference is you'll have more going directly into your pocket so even if initially, you're doing less, you should be earning more.

 

[AcidPerm]

Staff don't generally manage themselves very well if they're used to the business being tightly managed. Are they actively running the business in your absence or just chit chatting, and looking after their regulars? You could do with a friend or family member popping in and making an appointment incognito and reporting back.

Do any of them have management potential?
Could you promote one of them on a temporary basis as acting manager on the days you don't go in to see if takings improve?

If you decide to sell, you need to check out whether renewing the lease is likely to be straightforward as no buyer will be interested in a 2 year lease. I also think it unlikely that a genuine buyer would accept your competition terms unless they're completely naive. However, if you agree to no direct poaching, you should still be able to open up from home a few months later and advertise through social media etc.

 

[loulou2017]

the receptionist is employed but therapists are on a 60/40 so not sure how the manager part would work they do run the salon ok with out me but it doesn't stop the stress of covering holidays, keeping the staff happy and just the general worry about bills etc... I think its just the more the financial side of it that I'm fed up with I think our prices are too low and overheads are high ( put my prices up last nov most things by £2 so don't feel I can do it anymore for a while) When I first started the salon I started the prices way too low as I was inexperience in business so gradually been trying to increase them.
My landlord is very nice and think he would renew the lease if I found a good buyer that would look after the shop well,if I waited a few months to set up I would lose most of my clients base ... so do you think if I was wanting to start from home which is 10min away its very unlikely I would be able to sell on.. I was thinking the price to be just my money back on all the stock and assets inside and I would leave the salon how it is I wouldn't want to be greedy just seems a waste to not get anything back.

Thanks so much for the advice xxx

 

[Cindy2021]

I currently have a home salon and there are pros and cons.
I love it and it suits as my children are older so I can work but still be there when needed.
The downside to a home salon is that I feel there is no cut off.
Work and personal life just have blended together.
I intended to work part time and now work longer hours than I ever have.
Clients can also arrive very early or get their dates mixed up at times!
Lately I'd love to be able to lock up at 5pm and go home.

 

[BannerPenguin]

the receptionist is employed but therapists are on a 60/40 so not sure how the manager part would work they do run the salon ok with out me but it doesn't stop the stress of covering holidays, keeping the staff happy and just the general worry about bills etc... I think its just the more the financial side of it that I'm fed up with I think our prices are too low and overheads are high ( put my prices up last nov most things by £2 so don't feel I can do it anymore for a while) When I first started the salon I started the prices way too low as I was inexperience in business so gradually been trying to increase them.
My landlord is very nice and think he would renew the lease if I found a good buyer that would look after the shop well,if I waited a few months to set up I would lose most of my clients base ... so do you think if I was wanting to start from home which is 10min away its very unlikely I would be able to sell on.. I was thinking the price to be just my money back on all the stock and assets inside and I would leave the salon how it is I wouldn't want to be greedy just seems a waste to not get anything back.

Thanks so much for the advice xxx

Have you thought about moving the therapists to fixed rent? Then you are just their landlord. No stress, you pay the bills, they go on holiday etc. it's none of your business (up to them to sort out their clients) you just take the rent.

 

[loulou2017]

Thanks for advice ciderella, i did think it must b a pain if they turn up early ( why do some clients come 30min early!!!it makes u feel pressured to start!)or wrong day.. as on days off i like to wear old clothes and do housework so wouldn want to feel on edge.. do u not feel relaxed in your home as much when off?Do you find the money is better as less overheads? Every job has down sides but would you say the pro out way the cons with home salon?
Xx thank u

 

[loulou2017]

Thank you for input i really appreciate the ideas.. but i am a control freak and like that i can still control what they wear what products we use how the treatment is done etc..

 

[CFBS]

There's some really good advice given in the above

 

[AcidPerm]

Thank you for input i really appreciate the ideas.. but i am a control freak and like that i can still control what they wear what products we use how the treatment is done etc..

Oh dear, it sounds like you're treating your therapists as employed staff but paying them as self employed. You'll have a much bigger headache to worry about if HMRC decide to investigate your set up.

Read through the guidelines and then have a think about how to move forwards positively and reduce your stress levels.

http://www.salongeek.com/threads/hmrc-guidelines-for-determining-self-employment.295298/

 

[salonfrog]

Hi LouLou

Really sorry to see any business owner go through this stress.

There are some really good points offered above and I agree with most of them.

Other than those points above, my advice would be to take a step back, read this book: "The e-myth revisited" and re-evaluate what you really want. Can't recommend it enough. It takes you on a really practical journey and after reading it, I completely changed my business operating model.

https://www.amazon.co.uk/gp/aw/s/ref=is_s_ss_i_0_6?k=the+e-myth+revisited&sprefix=the+e-

 

[salonfrog]

One other point is to watch out for any capital gains tax implications of having a dedicated salon at home (should you ever consider moving house).

 

[Bettyboobumpkin]

I would seriously look at selling to your receptionist. I have 3 salons now but when my children were little I worked at home until they started school. It's very difficult being torn between the 2 and you could always go back to having a shop when they're older. I still have the Mummy guilt now about not spending enough time at home but couldn't have done it when they were babies.

 

[BannerPenguin]

Thank you for input i really appreciate the ideas.. but i am a control freak and like that i can still control what they wear what products we use how the treatment is done etc..

Yeah even on 60/40 split you really shouldn't be doing that... you could land yourself with a big fine from HMRC as you are basically treating them like employees. Percentage split or flat rent, regardless it's the same setup, you're just a landlord to them. Legally they should be handling all their own client cards due to data protection too.

 

[RED STAR]

I currently have a home salon and there are pros and cons.
I love it and it suits as my children are older so I can work but still be there when needed.
The downside to a home salon is that I feel there is no cut off.
Work and personal life just have blended together.
I intended to work part time and now work longer hours than I ever have.
Clients can also arrive very early or get their dates mixed up at times!
Lately I'd love to be able to lock up at 5pm and go home.

Been there and got the 'T' shirt!
It sounds perfect on paper...BUT......
There are pro's & con's to both.

Personally, I think the ONLY WAY is to buy a freehold investment.

There is not enough money to be made in this industry, to then be paying for a lease and rent!

 

[loulou2017]

Hi LouLou

Really sorry to see any business owner go through this stress.

There are some really good points offered above and I agree with most of them.

Other than those points above, my advice would be to take a step back, read this book: "The e-myth revisited" and re-evaluate what you really want. Can't recommend it enough. It takes you on a really practical journey and after reading it, I completely changed my business operating model.

https://www.amazon.co.uk/gp/aw/s/ref=is_s_ss_i_0_6?k=the+e-myth+revisited&sprefix=the+e-

Thank u i have ordered the book

 

[Cindy2021]

Been there and got the 'T' shirt!
It sounds perfect on paper...BUT......
There are pro's & con's to both.

Personally, I think the ONLY WAY is to buy a freehold investment.

There is not enough money to be made in this industry, to then be paying for a lease and rent!

That's what I'm considering at the moment.
My ex has offered to help me fund business premises but I'm not entirely sure it's what I want just now.

 

[salonfrog]

Thank u i have ordered the book

I'm so pleased.