Work from home or rent premises?

[Freelancetrainer]

[emoji112]Hello!

Now I realise the obvious benefits of both, no rent to pay out when working from home, especially whilst establishing oneself, is the single most attractive benefit to working from home. And being seen is probably the most obvious benefit to renting a salon with passing trade. However, fir those of you who have tried it both ways, have you found a preference or greater success of one way over the other? I’m nervous about paying out rent when there may be little coming in and the likelihood of running into debt as a result, especially as I have a family and need a reasonable income. It may be that I’m able to take over an existing small salon not far from home with a low rent but the thought of paying rent with no idea how successful I will be, I find daunting. Any advice?

 

[KayleighWilson]

I have been working from home but as my business is expanding i feel the most logical step is now for a premises. It is a hard decision to make though and finding something which is well placed, not going to cost a fortune and looks professional is proving tasking.

 

[Freelancetrainer]

Have you been working from home for long and were you reasonably busy? Would you say there are any real negatives to working from home?

 

[KayleighWilson]

I have worked from home for the last couple of years. Whilst it is great in terms of low overheads, can just nip into the house when have a free hour etc. It can and this is purely my opinion, not look as professional as those with a fully commercial set up. This is my concern as my brand grows and i expand with other people coming to work for me. I need to expand and provide a professional premises as a base.

 

[Freelancetrainer]

I can see why you’d want to do that. I don’t intend on having staff but if I did have premises I’d perhaps have some self employed people who specialise in areas I don’t to use the premises during the hours I’m not there. At least then a % from them could be useful towards rent.

 

[stefarama]

I imagine it really comes down to how you define success, and how disciplined you are with your time. If you enjoy building solid relationships with a steady and loyal clientele, have good time management skills and strong work ethic, I think a home salon is a great thing. But if you prefer the thrill of new and changing clients wanting the latest trends (there will still be some loyal clients of course), love teaching and moulding new stylists, and want to grow your brand someday to be bigger than you, a commercial space would be worth the investment early on, I think.

I went through this same debate myself and here was my conclusion: -it's long so you can skip it if you like.

I've had a home salon for 18 years. I find that not all people want to go to a fancy / busy salon. I have not found that clients don't think my salon is professional. I present myself professionally, but my clients like that they don't have to dress up to go to the salon. They feel comfortable and relaxed right from the start. Before my son was born I worked 10 hour days 6 days a week and loved every second of it! Then, while he was young, I cut back to just 2 days a week and that was great too. Now that he's older I'm going back to full time and debated moving outside the home to rebuild my clientele. Ultimately I decided to stick with the home salon for several reasons:

1. Money. I make more money in my home than I would if I paid rent somewhere or was an employee, or even if I owned a salon outside the home. I can control my income by deciding my prices, when I raise them and when I don't. I can also control my expenses. No boss, no rent increases, etc.

2. Culture. At my home salon I can create a salon culture that I thrive in and my clients enjoy. If I bought a salon, I could also create that culture, but with employees comes more stress and it could take time. I have found that not all clients prefer a busy posh salon. Many loyal bread and butter clients prefer the relaxed atmosphere of a home salon.

3. Stress. So much less stress at home. Of course not having employees, but also it's such a nice work/life balance (for me). I can take vacations and family time when it suits me and I still have the freedom to fit in clients around that. (So long as I average the same number of hours per week with a few weeks off for vacations per year, clients don't really mind which days I'm on or off.)

4. Relationships. I find that I have closer relationships and my clients stay with me longer (78 of them have been with me for 16+ years) in the home salon than I imagine they would at a commercial space. Over time some have kids who grow to be teens and then we do fun, trendy styles (which keeps my skills fresh). Even the teen relationships are so fun. I have clients who's hair I've been doing since they were little kids, and now they have babies of their own! I did their funky teen years, I did their wedding, and now I'm doing their kids... all the while, still doing their mom's hair. I can't even express the joy of that!

Hope some of that helps! Again, I think it boils down to what success looks like to you. Good luck!! Either way, it's a fun decision!!

 

[Patricia Bearcroft]

Oh my I love the awnser above!

I personally have had this debate aswell,

I have stuck with it at home and going around to clients because when I was thinking of it I spoke to a women who had a salon And now does freelance and she was so much happier and less stressed,

As much as i would LOVE to be back in a salon environment I would struggle to be an employee I have worked for myself for 7 years now... so it would mean doing it for myself which would be fine but I can only work 3 days a week with the little one at the moment and weekends are a no go,

I am just about to go on a pop up shop course as I also do nails and make up and sell make up and facepainting

So I will see how I can incorporate the hair into it, it may just be hair up and cutting but they will then have my details to book colouring in if they wanted which will bring more new exciting clients to me

I may be able to set up a total hair shop (as I have ALL the equipment I need like portable basins hood dryers like everything you could think of but portable!) So I will look at that one day

That way I wouldn't be tied into a contract which will be a HUGE thing off my mind

 

[Freelancetrainer]

I’m glad to hear others think the same way as me, it reassures me that it’s not necessary to have premises to be successful. It’s difficult for me as there may be the option of a very small salon, walking distance from home which I missed out in last time whilst going through a divorce with 3 very young children. It may be about to become available again and my children are now all in secondary so I’m much more free. I’m a single parent, financially dependent on my ex and desperate to get my independence back. I have however, spent a couple of thousand pounds on products and upskilling etc and already had other debts to consider. All budgeted for and can be clear off one year from now. My worry is, if I had premises and I didn’t have enough income coming in to clear the rent and bills etc then I could find myself never clearing the existing debt, or worst still, adding to it. I don’t have any other income to rely on and as a mum of 3, I just can’t ignore that could happen. I’m very good with money and the thought of losing control over that due to rent and utility bills does fill me with dread. I also have other commitments and at home, at least I am there to tend those. With a salon I’d feel I had to be there even if there were no clients booked in. Also, I’m not looking to employ anyone and in a salon, I’m not sure it would be professional to have people wander in from the street to ask questions or get information and I’m in a back room carrying out a treatment. I’d either have to interrupt what I was doing to tend the visitor (and there could be many) or I lock the door to avoid interruption and risk bad reputation. I know I could put an enquiry book out with an explanation on the front desk and call visitors back but I think it would put people off and they might not bother. Id also worry about stuff being stolen at front of shop. I can also work much much later if based at home, from a safety point of view. Despite all that, I’d still very much like to have a ‘proper’ salon. But I can’t help but think working from home makes sense as I have a dedicated room and can always move to premises in a few years time once I’ve cleared existing debts. I think it will be far less stressful working from home and will allow me a better work/life balance. With a salon I’d feel I always needed somebody in it every day which means either I work 6 days a week (fine if I’m busy but not if I’m not - just a restricting commitment otherwise) or I employ others etc. But I do worry that I’m going to lose out in those premises for a second time and if I’m not successful from home, I’ll always wonder if I should have gone for the salon.

 

[Patricia Bearcroft]

I’m glad to hear others think the same way as me, it reassures me that it’s not necessary to have premises to be successful. It’s difficult for me as there may be the option of a very small salon, walking distance from home which I missed out in last time whilst going through a divorce with 3 very young children. It may be about to become available again and my children are now all in secondary so I’m much more free. I’m a single parent, financially dependent on my ex and desperate to get my independence back. I have however, spent a couple of thousand pounds on products and upskilling etc and already had other debts to consider. All budgeted for and can be clear off one year from now. My worry is, if I had premises and I didn’t have enough income coming in to clear the rent and bills etc then I could find myself never clearing the existing debt, or worst still, adding to it. I don’t have any other income to rely on and as a mum of 3, I just can’t ignore that could happen. I’m very good with money and the thought of losing control over that due to rent and utility bills does fill me with dread. I also have other commitments and at home, at least I am there to tend those. With a salon I’d feel I had to be there even if there were no clients booked in. Also, I’m not looking to employ anyone and in a salon, I’m not sure it would be professional to have people wander in from the street to ask questions or get information and I’m in a back room carrying out a treatment. I’d either have to interrupt what I was doing to tend the visitor (and there could be many) or I lock the door to avoid interruption and risk bad reputation. I know I could put an enquiry book out with an explanation on the front desk and call visitors back but I think it would put people off and they might not bother. Id also worry about stuff being stolen at front of shop. I can also work much much later if based at home, from a safety point of view. Despite all that, I’d still very much like to have a ‘proper’ salon. But I can’t help but think working from home makes sense as I have a dedicated room and can always move to premises in a few years time once I’ve cleared existing debts. I think it will be far less stressful working from home and will allow me a better work/life balance. With a salon I’d feel I always needed somebody in it every day which means either I work 6 days a week (fine if I’m busy but not if I’m not - just a restricting commitment otherwise) or I employ others etc. But I do worry that I’m going to lose out in those premises for a second time and if I’m not successful from home, I’ll always wonder if I should have gone for the salon.

Can you make a salon in your house??

Like a room what you can make look professional with all the fixtures and fittings??

Or a wood cabin out the back??

A dining room maybe? Or utility room?

If you go into this premises do you have the clientele to cover the expenses straight off the mark? You say you depend on your ex's money which says your either not working the amount that you want or your prices arnt high enough to cover your bills,

Personally try and do anything you can in your own home around your family you say you have teenagers,tbh this is the time they will need you the most but actually won't ask for help, so you have to be there to notice any changes, (personal experance) and one of the many reasons I know I will never be able to have or work in a salon

Can you get a shed and put it on the side of your house and run gas electric and water into it? It would cost the same amount as starting a salon And you can do it at your own pace,

This is what I will be looking at once I move to my forever home and won't move anywhere I can't for that in. X

 

[AcidPerm]

What about the third option of renting a room in an established (or new) salon?
Your rent commitment will be reasonably low and therefore less risky but you have the benefit of passing trade and having colleagues around for company and support.

Running a salon single handed without any additional staff makes no sense to me as you’re not going to be able to earn any more money than if you were renting a room but you’d have all the additional expenses to cover by yourself so you’d effectively be earning much less.

Realistically, it usually takes around 2 years to establish a new salon business with a decent percentage of repeat clients. If you’re starting from scratch with a limited clientele then you need to set aside a decent lump sum to cover at least the first 6 months of the salon rental and all the bills and then assume that the following 12-18 months, you’ll cover your bills but not necessarily realise much profit.

...But I do worry that I’m going to lose out in those premises for a second time and if I’m not successful from home, I’ll always wonder if I should have gone for the salon.

I’m not a psychologist but I’m concerned from what you’ve posted that you’re equating owning that particular salon as a measure of success in your personal life. It comes across to me as emotional rather than rational thinking. The reality is that it’s just another shop.
My apologies if I’ve got that completely wrong.

 

[Freelancetrainer]

Hi. No, I just mean what I said, that if I’m not successful with the home salon then I’ll always wonder if I made a mistake and might have been more successful with the street salon. I already have a room set up at home which is dedicated to being a treatment room with everything in it. I’ve spent quite a bit setting it up. I haven’t started yet and have no clientele. It’s the practical reasons (set up costs still to be cleared, rent with a salon and other overheads) that are stopping me going for the salon. I just can’t help but wonder if a home salon will be as successful as a salon on a street, that’s all. But in all honesty, i don’t see me taking on a salon with rent etc whilst still paying off my start up costs and no clientele yet so the likelihood is that I will continue with the plan to work from home. It just happens that the salon has become available at the same time I’m setting up a room at home. I’m just hoping I still get a reasonable clientele at home given there’s no passing trade that you’d get with a salon.

 

[Freelancetrainer]

As far as that particular salon is concerned, it’s literally 5 mins walk from home and much cheaper than most salons. I guess that’s the ‘emotional’ bit your seeing in my writing so that’s true.its close home and handy for the children if I was needed urgently etc and means my premises are in a village I already live and am recognised in. So it is much more attractive to me than one of very many salons that are currently in our closest town.

 

[Freelancetrainer]

Can you make a salon in your house??

Like a room what you can make look professional with all the fixtures and fittings??

Or a wood cabin out the back??

A dining room maybe? Or utility room?

If you go into this premises do you have the clientele to cover the expenses straight off the mark? You say you depend on your ex's money which says your either not working the amount that you want or your prices arnt high enough to cover your bills,

Personally try and do anything you can in your own home around your family you say you have teenagers,tbh this is the time they will need you the most but actually won't ask for help, so you have to be there to notice any changes, (personal experance) and one of the many reasons I know I will never be able to have or work in a salon

Can you get a shed and put it on the side of your house and run gas electric and water into it? It would cost the same amount as starting a salon And you can do it at your own pace,

This is what I will be looking at once I move to my forever home and won't move anywhere I can't for that in. X

Hi. I’ve just set up a treatment room in what was my unused dining room. All kitted out. Just got a few final bits to sort out before I actually start advertising and working.

 

[stefarama]

Can you talk to the owner of the street salon you want? Would they be willing to let you set up a treatment room there right away and maybe stay on a bit longer to help you get through the first year or two? What kinds of treatments do you do? Would clients feel more comfortable in a street salon or in your home?

 

[Patricia Bearcroft]

Hi. I’ve just set up a treatment room in what was my unused dining room. All kitted out. Just got a few final bits to sort out before I actually start advertising and working.

I think after reading your comments just forget about that salon, if you have kktted out your home its the same as you having your own salon anyway, if anything more private which alot of clients do like,

So why dont you just advertise on social media, get some clients in and crack on doing what your doing, you have put the capital into it don't change it mid way you will end up loosing LOADS of money,

Stick to your original plan hun!

Advertise advertise advertise get your regular clientele and stick with it, because success isn't a shop unless you really want it to be, in which case in another 5 years that shop may come up again, (then you should be questioning why it isn't doing so well)

I have a problem with "fluttering" and I need to stick to a plan aswell lol its the only way to make money x

 

[Freelancetrainer]

I think after reading your comments just forget about that salon, if you have kktted out your home its the same as you having your own salon anyway, if anything more private which alot of clients do like,

So why dont you just advertise on social media, get some clients in and crack on doing what your doing, you have put the capital into it don't change it mid way you will end up loosing LOADS of money,

Stick to your original plan hun!

Advertise advertise advertise get your regular clientele and stick with it, because success isn't a shop unless you really want it to be, in which case in another 5 years that shop may come up again, (then you should be questioning why it isn't doing so well)

I have a problem with "fluttering" and I need to stick to a plan aswell lol its the only way to make money x

Yes I think you’re absolutely correct. I think it’s just because deep down I’ve always planned on having my own salon and if u was going to have a salon, this one would be ideal. However, the timing isn’t ideal, for the second time round. First time I was just going through a divorce and now I’m in a position to start working again now my youngest is in secondary, I don’t have the financial security of such a commitment to rent, especially with the start up costs already accrued and needing paid off. I think sticking with my original plan is the way to go otherwise I’d be stressing over meeting the rent on top of paying back the start up costs on top off the ‘time’ I’d need to spend on those premises when I may not have clients. Plus, if I’m honest, it would feel I was rushing into things and end up not spending the time to do things properly and to the standard I’d want. Always interesting to hear others views and I’ve been reassured I’m doing the right thing by working from home for now. I don’t even like going into salons and I worked in them for 15 years on the trot! So I agree many clients do prefer to visit a home salon. Thanks for your insights!

 

[Freelancetrainer]

Can you talk to the owner of the street salon you want? Would they be willing to let you set up a treatment room there right away and maybe stay on a bit longer to help you get through the first year or two? What kinds of treatments do you do? Would clients feel more comfortable in a street salon or in your home?

The salon is teeny tiny. A reasonable sized reception area and just one room behind it. The girl in there is planning to pack it in. The premises aren’t hers though. I’m sure she pays a lease/rent for the premises. I’m happy and reassured now that working from home is the way to go for now, and maybe always.

 

[Trinity]

The salon is teeny tiny. A reasonable sized reception area and just one room behind it. The girl in there is planning to pack it in. The premises aren’t hers though. I’m sure she pays a lease/rent for the premises. I’m happy and reassured now that working from home is the way to go for now, and maybe always.

I'd be questioning why she's closing already??? You'll never know the real reason but it could well be the overheads are too high, there is not enough footfall to sustain the business, or maybe she's realised it's cheaper and easier to work from home too. Thriving business don't close down

 

[Freelancetrainer]

I'd be questioning why she's closing already??? You'll never know the real reason but it could well be the overheads are too high, there is not enough footfall to sustain the business, or maybe she's realised it's cheaper and easier to work from home too. Thriving business don't close down

Well there could be any number of reasons but since I’m no longer considering it, it doesn’t really matter.

 

[stefarama]

So glad to hear you've made your decision! You will love working from home, but it's good to consider all options thoroughly to let go of that feeling of missing out on something else. Very excited for you and wishing you great success!!!