Shocking naivety

[persianista]

I recently put one of my salons up for sale. I've had it 15 years, and as my second career is going nicely, I decided to cut back my hairdressing career, and retire.
It's been a salon 26 years, so the location has been proven to be a good one for a salon. There's been a lot of interest, as I'm not asking much for it.
Not ONE person has asked to see the books!!
Not one person has asked how much it takes, or how many clients per week come in. I have all that information to hand in isalon, but nobody seems interested.
I had one arrive yesterday, with 3 kids in tow declare that she didn't like the wallpaper, state that painting the staff room would be 'too much work' then proceed to tell me that a salon down the road which had nicer wallpaper sold for only £3000 more!
Now I know that my white, furry leopard print wallpaper ain't gonna be everyone's cup of tea, but I was truly gobsmacked that her criteria for judging a business was so....surface.
Bit like not buying a house because you don't like the colour of the living room walls.
I came to the conclusion that she thought that sneering and being condescending was her way of trying to negotiate. She seemed quite upset when I shut her down and ushered her out. She wanted to stay and slag off my stuff a little more I think. Probably hoped I'd beg her to take it off my hands..:zzz:

So. If you go look at a salon, try being nice, you'll more likely get a better deal. Look at the books, they'll tell you more about a business than the wallpaper.
Ask them about their clientele, look at their appointment book.
Be realistic, nobody will give you an established business for nothing. Nobody will hand over their client list, stock, equipment and furniture for nothing.
(I've had two now think they would get a tenanted flat, and a profitable, staffed, salon for free because they didn't read the particulars).

If you expect a top quality salon, with everything brand new, and everything pristine, expect to pay big bucks. Either that, or it's in the wrong place, and went tits up.
Nice wallpaper doesn't guarantee clients will come.

 

[jujojones]

I think your whole story is a good representation of why so many businesses fail! People think its easy, and want an easy life!
Read accounts pppftt to much like hard work!
Actually take advice from someone who knows how business runs.... No not a chance, I can do it better, I've just left college, I know it all!!

I recently got accepted for a lease, there where a few applicants for the property and since it is local council run they scored the application down to experience etc etc, anyway, long story short I found out another applicant was by one of the mums at the school, any way she collared me one day to express her annoyance that I had got the lease and not her! What amused me more was not that she obviously thought I had a master plan with the council to upset her, but she's not a qualified beautician yet ! Qualifies at level 2 in may! Baffles me why people with no experience feel capable! 8 I've been doing my job, managing salons, and I'm still not sure I'm ready to be on my own! Lol!!


Ps! Congratulations on deciding to retire! X x

 

[squidgernetball]

So true! I'm shocked by the naivete of people who think the whole world is just sitting round waiting for them to qualify. A sign out the front, and then confusion - I can't get clients!!! What can I do!!!

I have been in this business for many years and cannot understand the woman who told me about her failing salon. She ploughed thousands and thousands of her own money into it, only to close with huge losses!

As I have said on here before, I employ my own daughter and told her that the day her earnings don't cover her salary is the day I let her go. She never, ever forgets to get rebookings, always upsells, and her retail is phenomenal. Keep them hungry lol!

Vicki x

 

[persianista]

To be honest, the odds that two out of three salons fail doesn't surprise me, given my recent experiences. The sheer lack of business sense is astonishing.
One woman declared that she didn't want to buy anything at all from me, she just wanted the empty shop. Fine, until she realised that she couldn't fit a salon out for her measly budget! "But I want everything brand new" she wailed.
She planned to close for a couple of months, refit an enormous salon completely in Art Deco style, have all new retail/professional ranges, and pay all the bills during that time and after, on a miniature budget that she had to borrow in it's entirety. Madness. She had no budget for legal fees, lease deposit, or living expenditure.
Think it through.

 

[virtues2011]

You're not alone. I'm going through the same. Last week I had one potential buyer tell me he was shocked that I pay my manager £9ph and he could get a manager for £7.00... went on to tell me my coffee machine was impersonal.... then left.

Sent from my GT-N7100 using SalonGeek mobile app

 

[persianista]

I couldn't get a stylist for £7 per hour, not a good one.
I was staggered that this woman thought that painting a room amounted to 'a lot of work' though. Allan and I did it in an evening once.
Jujo, congrats on getting your shop, I'm sure you'll be fine.
I'm looking forward to cutting back on my workload to be honest. I've started getting RSI in my hands, so need to lighten the load before it gets to the stage that I can't do hair, which would be a disaster.
It's why I embarked on the-new-career-that-can't-be-named-on-here!

 

[virtues2011]

I have had some real timewasters. I hope you manage to achieve a swift sale.

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[jujojones]

I couldn't get a stylist for £7 per hour, not a good one.
I was staggered that this woman thought that painting a room amounted to 'a lot of work' though. Allan and I did it in an evening once.
Jujo, congrats on getting your shop, I'm sure you'll be fine.
I'm looking forward to cutting back on my workload to be honest. I've started getting RSI in my hands, so need to lighten the load before it gets to the stage that I can't do hair, which would be a disaster.
It's why I embarked on the-new-career-that-can't-be-named-on-here!

Gosh I paint a room in an evening just when I get bored lol!! Hard work to me would be stripping back, moving walls , plumbing etc!!

Ooh your new career sounds interesting !!

Although to be fair I have also bumped into a few salon owners trying to sell a pile of poop for a small fortune! One wanted 38000 plus fixtures and fittings for 12000 , for a salon, plus 14000 pa rent , (I'm up north , that is a reasonable price ) with 4 staff that according to the books barely broke even and the most valuable fixture was a dated (and need need of repair) caci machine and a spray tan machine that fell to pieces when I picked it up!! He he...... The stock consisted of st tropez that was out of date and some very questionable facial products I wouldn't have used on my dog!! oh and the nail varnish (had about 20to choose from) I picked up to test, wholesaler own brand, which was gloopy and she offered to 'thin it down' if I wanted to try it!!

I walked out bemused ! Then got a call to say shed let me have it for 25ooo for a quick sale, then reduced to 12000..... I think she knew she was flogging a dead horse!! He he he x x

 

[Martin Duffy]

To be honest, the odds that two out of three salons fail doesn't surprise me, given my recent experiences.

One of my clients is an exceedingly wealthy business woman who, besides other things, works as a business advisor. Once when we were discussing/despairing at how people run their businesses she memorably said to me that the real reason two out of three businesses fail is because two out of three businesses are crap! I think there's a definite element of truth in that!

 

[persianista]

I think what I find shocking is the people who think it should be free.
They say stuff like "I'll take it off your hands". Erm, don't think so. If I flogged it all off on eBay, I'd still get something for all the equipment and stock!!
Let's face it, if they can't read a balance sheet, they got Bob Hope of running a business. Do people TRULY believe someone's just gonna hand them a business, full of equipment and stock? Are they really that deluded?

 

[persianista]

One of my clients is an exceedingly wealthy business woman who, besides other things, works as a business advisor. Once when we were discussing/despairing at how people run their businesses she memorably said to me that the real reason two out of three businesses fail is because two out of three businesses are crap! I think there's a definite element of truth in that!

Agreed. In particular the trend for people who are unable to get a job to start a salon fresh out of training.
It's generally better to find your success first, then build a salon.
But then, what would I know?

 

[jujojones]

Agreed. In particular the trend for people who are unable to get a job to start a salon fresh out of training.
It's generally better to find your success first, then build a salon.
But then, what would I know?

This Is so true! I can't believe how awful I was once I came out of training, but thought I knew it all as I was qualified!!i feel embarrassed just thinking of it !

Anyway after years of hard work and continual training, I'm ok at what I do! ;-)

I once gave a trial to a girl, (I hadn't interviewed her the owner had so I could work with her and see how she got on) she didn't realise, nor ask if I was the manager, but within an hour had told me I was incorrectly doing a treatment 'in college we don't do that, you have to do this' and continued to do so for the rest of the day, I tried to teach her new tips and ways of doing things but she simply wouldn't have it! .... She didn't last a week, ended up renting a room some where, I saw some hideous photos of her work on Facebook.... I think she works in a fast food bar now???


IMO you need experience of what you do when you start a business , after all when your the boss and something goes wrong.... There's no one else to turn to!!

I do hope you have a swift sale, but I am secretly hoping for a few more funny stories about silly buyers!!! X

 

[persianista]

I have two viewing tomorrow, so who knows.

 

[KGsalon]

Wow people have no idea. And I get the feeling a lot people turn to beauty/hair for a quick buck and think it's easy and everything's free. No idea!!!!!

I have a salon in Bedfordshire and looking for one in Northampton. I viewed two, and one of my first questions was accounts, and seeing the books!
Why would you even be Intersted in a salon not knowing turnover and profit??? Doesn't make sense x

 

[BannerPenguin]

Wow people have no idea. And I get the feeling a lot people turn to beauty/hair for a quick buck and think it's easy and everything's free. No idea!!!!!

I have a salon in Bedfordshire and looking for one in Northampton. I viewed two, and one of my first questions was accounts, and seeing the books!
Why would you even be Intersted in a salon not knowing turnover and profit??? Doesn't make sense x

Exactly. If the figures aren't good or not what you are looking for then it doesn't matter how pretty the place looks.

 

[virtues2011]

You need to have your own vision when looking at any business, regardless. Most of us know there is no legal requirement to file accounts as a sole trader, (Ltd is different) the majority of hairdressers try very hard to make up their own accounts with little or no understanding of accruals, depreciation, stock valuation, nett profit and gross profit etc. unless you can read them they probably won't make much sense and are generally sexed up, there is nothing new here. Not many business are sold when they are making a great profit and if they are it is generally reflected in the cost of the salon. I've never quite understood why people look at a salon which is relatively cheap then say 'oh its not making much of a profit' ... and to try and explain what goodwill actually means seems fruitless. The principles of business are exactly the same whether you are a lone worker or a limited company with 1000 staff. How young inexperienced girls leave college and start up with no understanding of the commercial world is frightening. They have nothing but hope.

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[Nicolahayley]

I've had a good few years working in salons and big spas etc. I think I wouldn't be where I am now without my first boss. She was lovely but very very strict. To the point of embarrassment checking my clients thoroughly in the reception in front of other clients!!! I felt like crap at the time but now it's made me have high standards in my salon. But the point I wanted to make was that no matter if u have been in business 5 days or 50 years u always learn something new everyday and come up against new obstacles all the time.
But I do think u need to have experience behind u first before u start up!! Definetly!

 

[persianista]

I've had a good few years working in salons and big spas etc. I think I wouldn't be where I am now without my first boss. She was lovely but very very strict. To the point of embarrassment checking my clients thoroughly in the reception in front of other clients!!! I felt like crap at the time but now it's made me have high standards in my salon. But the point I wanted to make was that no matter if u have been in business 5 days or 50 years u always learn something new everyday and come up against new obstacles all the time.
But I do think u need to have experience behind u first before u start up!! Definetly!

The thing is, being a great hairdresser or therapist isn't enough. You also have to be great at finance, knowledgeable about business, and practical.
Anyone turning up for a business meeting with 3 kids in tow is laughable, let alone blanching at painting a room.
Doing great treatments is only a tiny part of it.

 

[laurakate]

I recently put one of my salons up for sale. I've had it 15 years, and as my second career is going nicely, I decided to cut back my hairdressing career, and retire.
It's been a salon 26 years, so the location has been proven to be a good one for a salon. There's been a lot of interest, as I'm not asking much for it.
Not ONE person has asked to see the books!!
Not one person has asked how much it takes, or how many clients per week come in. I have all that information to hand in isalon, but nobody seems interested.
I had one arrive yesterday, with 3 kids in tow declare that she didn't like the wallpaper, state that painting the staff room would be 'too much work' then proceed to tell me that a salon down the road which had nicer wallpaper sold for only £3000 more!
Now I know that my white, furry leopard print wallpaper ain't gonna be everyone's cup of tea, but I was truly gobsmacked that her criteria for judging a business was so....surface.
Bit like not buying a house because you don't like the colour of the living room walls.
I came to the conclusion that she thought that sneering and being condescending was her way of trying to negotiate. She seemed quite upset when I shut her down and ushered her out. She wanted to stay and slag off my stuff a little more I think. Probably hoped I'd beg her to take it off my hands..:zzz:

So. If you go look at a salon, try being nice, you'll more likely get a better deal. Look at the books, they'll tell you more about a business than the wallpaper.
Ask them about their clientele, look at their appointment book.
Be realistic, nobody will give you an established business for nothing. Nobody will hand over their client list, stock, equipment and furniture for nothing.
(I've had two now think they would get a tenanted flat, and a profitable, staffed, salon for free because they didn't read the particulars).

If you expect a top quality salon, with everything brand new, and everything pristine, expect to pay big bucks. Either that, or it's in the wrong place, and went tits up.
Nice wallpaper doesn't guarantee clients will come.

Persianista, you're an absolute legend and I've always appreciated your posts on salon geek. If you leave hairdressing I suspect it will be a loss to the industry but it sounds like you've had a good innings. I too am ultimately looking at not being in beauty for the rest of my career and I wish you luck with your new venture too. It's an enjoyable industry to be in overall but sometimes the input and output don't add up so I can understand why people don't stay in hair beauty forever.

Regarding the sale of your salon, even though you'll feel relieved to sell it I'm sure you'll want to see it go into the hands of someone who knows what they're doing because at the end of the day, you made it what it is today.

Maybe a lot of people expect to create their own business from scratch and are overlooking the fact that they could potentially have the advantage of an established business. Their loss really.

 

[MissyMuffin]

Who said joining the industry 'to make a quick buck' ?
£9 an hour for a manager? You can earn more than that sitting in a call centre. Ok not creative or fulfilling and nobody has a passion for it but passion doesn't pay the mortgage.