Shut shop or look for cheaper premises

[Popart]

Hey geeks!

After a little quieter Christmas than last year I decided to sit down and go through accounts etc. Overheads are ridiculous, I live in a very small town which has one of the highest unemployment rates. For my salon rent is 200 per week and rates 6,500 a year. A girl across the street (first floor) is paying 40 per week rent and 473 rates a year!!!!!!! Shocking difference.

I established my business here and would be scared of the move, but if you are good enough ur clients will follow.

What I want to know has anyone moved premises to help out their own pocket? Changes are needed or I will give up.

People in cities may think my rent and rates are cheap compared to theirs, but my prices re cheaper and given the towns reputation I have to be realistic with prices...

Xxx

 

[pinkfairy]

Whereabouts are you? Are there any other premises in the town up for rent? Do you drive?
Also, is working from home or going mobile an option? x

 

[Popart]

Its a partnership business including hair and beauty so needs to be a salon. I started my beauty from home before opening the salon 3 years ago but my house was never my home if u know what I mean.
January blues are not helping either lol

 

[pinkfairy]

Are the hair side prepared to move too? Are there any suitable premises in the town? x

 

[BlushBeauty1]

Would anyone in the hair side be prepared to take over and you could just pay rent for your room? I had a salon but gave it up when I bought my house I just couldn't cope with all the bills every month so I moved into the hairdressers two doors down and now rent a room, most of my clients have followed me and I'm a lot happier

 

[Popart]

Yeah the hairdresser wants to move because she can see its stressing me out. Obviously her prices are much greater than mines. I have seen one building for rent which means I could be going upstairs.

I'm a single mother as well and instead of working every hour of the day I would love to go part time so I can spend quality time with her, I'm missing out on too much. Its def hard

 

[Rinn]

Your rates sound ridiculously high .Do you have a huge premises? Have you got onto the council to have a review? I would see if that can be looked at anyways.

 

[Bluerinse]

Hey geeks!

After a little quieter Christmas than last year I decided to sit down and go through accounts etc. Overheads are ridiculous, I live in a very small town which has one of the highest unemployment rates. For my salon rent is 200 per week and rates 6,500 a year. A girl across the street (first floor) is paying 40 per week rent and 473 rates a year!!!!!!! Shocking difference.

I established my business here and would be scared of the move, but if you are good enough ur clients will follow.

What I want to know has anyone moved premises to help out their own pocket? Changes are needed or I will give up.

People in cities may think my rent and rates are cheap compared to theirs, but my prices re cheaper and given the towns reputation I have to be realistic with prices...

Xxx

Have you only just sat down and gone through your accounts and found this out?

 

[Macoroni]

I have done it twice last time last week ! Lets wait and see early days have got a percentage not fixed rent with a lot of costs absorbed. Early days though I really feal for you I've always been a single mum and had one day maternity leave and was back at work within two weeks after birth it's difficult. Wishing you loads of luck xxx

 

[Popart]

No I haven't just noticed this now.

We had rates reviewed but nothing can be changed. Its not a big building, rates are just ridiculous here. However, I looked at a premises today and it is perfect and saving men alone just over 4500. Fingers crossed now xx

 

[sjmand]

Hey geeks!

After a little quieter Christmas than last year I decided to sit down and go through accounts etc. Overheads are ridiculous, I live in a very small town which has one of the highest unemployment rates. For my salon rent is 200 per week and rates 6,500 a year. A girl across the street (first floor) is paying 40 per week rent and 473 rates a year!!!!!!! Shocking difference.

I established my business here and would be scared of the move, but if you are good enough ur clients will follow.

What I want to know has anyone moved premises to help out their own pocket? Changes are needed or I will give up.

People in cities may think my rent and rates are cheap compared to theirs, but my prices re cheaper and given the towns reputation I have to be realistic with prices...

Xxx

Have you contacted rates to see if you qualify for small business discount? You will be amazed at the difference they won't offer you it you need to apply shame really as its the cause if a lot of businesses folding. Most businesses qualify unless you have a few businesses

 

[Urbanspa]

My rates are 12,200 a year! And that's just the ground floor premises I took over when the previous tenant moved out and wanted to take on the downstairs area from my beauty salon. It is worth it for me as we have a corner location and wrap around windows so huge savings on advertising that way.

The government and councils only give rate free to premises valued at 5000 or less. They need to re-think a new discount rate relief tier system that would help small business that need slightly bigger premises like hair&beauty salons but would mean the difference between better cash flow and doing well than having to look at closing or possibly taking smaller premises at the risk of not being able to carry on growing, but taking a few steps back.

Have you tried appealing against the rateable value of your premises?

 

[Easydry]

Could you negotiate with the landlord? Let him know that you have researched rent for similar properties and are prepared to move if necessary. If you do this nicely you never know what might happen?


Are there any other bills you could look at? Electricity? Water? Phone? etc?


Good luck with it. Let us know what you decide to do ...

 

[zonebeuauty]

Have a look a VOSA it will tell you business rates in your area,also see if you can get small business rates reduction I get this for my salon and really helps...

 

[Bluerinse]

Have a look a VOSA it will tell you business rates in your area,also see if you can get small business rates reduction I get this for my salon and really helps...

Got a website? All that comes up is MOT's

 

[zonebeuauty]

Sorry VOA, some how put a s in...
www.voa.govuk/business
Also look at your council tax at home I was paying £35 a month to much and got a rebate for past 3 and half years!!!

 

[Popart]

We did get 1000 off the rates last year but they are still huge. Tried the landlord her is not budging, he said its cheap enough.

If we go ahead with this new premises we are going to loose or 2k deposit

Rates are the killer, then they wonder why businesses are closing! Our tax money is good enough to pay every tom, dick and harry but not good enough to keep our heads above water. Its sickens me.

Thank u all xx