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to be or not to be??? that is the question

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diesel1978

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okie dokie peeps i need the advice of many good or bad!!!!!
I am a mobile tech and beautician with 2 children (caitlin 5 and diesel 2)
and a very unsupportive partner!!!!!
There is a shop that is very close to me that i would just love to open up as a salon its in a perfect location and it is ideal for nails and beauty!!!!
i think so any way. I have spoken to all of my clients regarding this and they are happy to come to me should i decide this is the right way for me annd all my family and friends think it is a great idea. This is however my lovely :twisted: partner who says i should'nt do it because it is too much money to set up (i would have to get a loan) and the rent and business rates are far too high.The rent is £8000 per annum and the business rates are £7900 per annum. Is this too much? Am i just dreaming again????
 

Nailsinlondon1

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Right love,
Ask your self some basic Questions.............
Shop location??? " Children not a problem if they are at school but will need after School care...........That can cost money.......
and thats what it boils down to...............

I just added Rent and Rates up............ ok you need to take about £306 a week to pay just for this.............

Stock, your wages( yes you have to eat too), Electric, Heating, Phone, Loan Repayment................
Insurance on premises aso............... this all adds up...........

Now I am not saying you can't do it, but what I am saying is................
Write down all your figures, then expected income forcast............

Take some advice before you get stuck with a 15 years lease and no get out clause..................
You might be able to reduce the rates by having the shop remeasured and recalculated..........
Rent out space so you have some rent coming in.........
There are loads of other ideas.............

But what ever you decide, I wish you luck !!!!!!!!!!
 

Mandi

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I would go and get some advice from your bank. Mine was very helpful nd they can give you pointers on drawing up a business plan which, as Ruth said, should include some finance figures. It takes quite a bit of research to do..but well worth it...gives you vision into the future! But as you are already working in your chosen profession you will already have a lot of the data stored in your head and the paper work you already have. A bank will not give you a loan without a business plan. You do not have to be at any particular stage to get advice from your bank. They usually give obligation free advice and while they may not be able to answer all your questions they can point you in the right direction.

Sorry to hear that your husband is unsupportive :( Is he supportive of your mobile business too? Perhaps his "unsupportiveness" relates to being concerned about money. A business plan will be good to show him too. My husband has an MBA (masters in business administration) so you can imaginewhat he was like when I said I want to open a business...he turned into business mode and quizzed me!

HTH
 

Tickled Pink!

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hi there
sorry to hear your hubby is not too supportive - i know the feeling! I've only been doing nails on paying real live clients a couple of months and he was great a first, but now doesn't like being asked/told/begged to be home by say 7.00 to take over the children! what's a girl meant to do?

Anyway back on subject...i know round my way, there have been a few instances where shops have been vacant for a while and the landlords have been more than happy to accept no rent but just the insurances and rates paid for a specified period. I have a hairdresser friend who took a small shop on this basis for a year, built up a fab client base and then moved premises knowing she had enough clientele to cover rent/rates etc in a new shop.
 

ollieninh

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see.
That sounds like about $ 6,000 USD annual rent. Cheap for the USA. Shops in the single level shopping centers in good area (and many not so good areas) rent for $2,000 to $3,000 USD PER MONTH.
Then again that is not for a single tech - that is a nail business employing 5 or 6 techs to handle the volume required.
SO the first thing I was thinking is are you talking about just YOU ALONG opening a 1 nail tech business.
Makes a lot of difference.

There are many a book at libraries and many a book available on line to help you begin organizning for the possiblilty of opening a business.
Begin your research -- this is business --- this is serious.
In fact, (my opinion) I would not have said BOO to hubby until I had already done substantial research and had some facts and figures to give out and some answers for questions.
NOW
your figure for the other approx $ 6,000 USD per year --- that seems like that is your areas business license/operating fees ????
WOW that is huge compared to the USA. That would discourage small businesses in the USA like crazy.
 

geeg

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Got your sums wrong there, fella!!

@ 1.69 $ per 1 pound -- the rent would be approx. $13,500.00 per annum amd similar for the rates!! Making it $26,350 per year.
 

ollieninh

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Still, the rent itself (not knowing the actual comparision) would be much less than what is norm in our area of the USA
and
still, the business fees to the governement agencies are WAY higher than those here.
The point still stands that at some figure of rent and fees, a location is going to have to be a multiple worker operation to have the volume to meet fixed costs alone.
For example, in my town, we have like 8 nail shops. At store rental costs of $ 2.500 USD monthly (that does not even include utilities), a one or even two person operation is just not going to cut it.

So the first factor of rent and fees and store size for her would be the decision of how many X number of hair stylists and/or nail techs available how many X number of hours per week, capable of doing X number of clients in that time frame, X the average expected price of each number of estimated services perfomed ...... is required to just cover fixed expenses, Then also variable expenses, Then to provide a reasonable business profit.
Anyway, some estimates and projections need to start being written down and examined.
 
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