EddScott

So, before the FSA stops people borrowing beyond their means we need to raise capital in order to open a hair dressing salon for my wife.

Its early stages yet and she has to have a 6 month break before she can open a salon in town (contract of existing employer) there is a place we have in mind that has been empty since the previous tennants left (also a hairdresser where my wife worked) its not in the town centre but is very close to a new leisure centre so plenty of close by parking and plenty of people needing a style after being in the leisure centre.

The place has been empty for a while and I think there could be some sort of deal with rent to allow time to get established.

Does anyone have an tips or ideas with regards to starting a new business. My wife is in charge of pricing up the equipment thats needed because she wants it all replaced and refurnished as it was a bit tatty in the previous owner hands.

Jue M

Is you wife a partner/director of the current salon where she works? I only ask because I find it hard to believe that a clause stating she can't leave and set up her own salon within six months would carry any weight, even if they pursued it through the courts. I'm sure it would be deemed to be Restraint of Trade.

cookstar

iTrader: (6)

Very common in this industry, my ex had similar clauses in her contracts. I think it extended to working for competing salons as well from memory.

Jue M

Agreed, if it is common practice for this type of clause to used within the Hairdressing Industry to avoid competative disadvantage, then yes, it is probably enforcable and would be upheld by the courts.

mamoon2

First she needs to work out how much capital she needs and then do a profit and loss forecast. If you want, pm me and i'll send you over a copy of mine (without figures) and she can just adjust it. Its a spreadsheet with all the formula setup.

You should get a deal off the landlord at the minute, maybe a few months rent free. There are so many shops/units around here that they are going for peanuts.

She could use the 6 months to get all the work done and market the launch. There will also be loads of tradesmen willing to do the work cheap.

Never a better time than now to do it, people will always need their haircut!

fitzscoob

Tell that to Duncan Goodhew

Clarebabes

People will always need a haircut, but colouring and anything above and beyond a haircut such as treatments, styling etc. may take a backseat in these testing times. I wish her luck though and if she has a good client base already, then she shouldn't have a problem.

EddScott

We've looked into trying to get out of this clause but having read other cases it is enforceable.

One thing I'm not sure of is the distance between her current employer and the building we are considering. The restriction is half a mile and the building might be past that point. I think she still has to be careful (maybe even refuse for the period) with taking customers away from her current employer for the 6 month period.

Its the start up costs that were are not sure about. Going to speak to some suppliers and see what deals can be had.

mamoon2 - PM'd you ref the spreadsheet - many thanks

SwissTony

iTrader: (19)

Dont forget to factor in the costs of a Rav4, BMW Z3 and/or a MX5

j4ckos mate

Mil has a hairdressers will post later on

EddScott

I think the start up costs could have been covered by the cost of the Impreza I bought on Monday

I'm the one for wasting money on cars, shes far more sensible. She'll spend it on ***** so in a way, I win twice. She'll read this later so pray for me.

That would be great, any advice would be fantastic.

Kieran_Burns

iTrader: (1)

Audi TT surely?

+Doc+

If you need any advice or quotes on the fitting of the shop drop me a line, my company has supplied a lot of the big hairdressers with interior fitments and fittings.
We are just making one for a new build in Mansfield actually (very high spec)

With regards to starting it all, in these times make sure your taking a big chunk of clients with you! Even if it means postponing the opening and sowing the seeds for a bit longer.

Good luck with it all (my wife is a hair stylise by trade)

hodgy0_2

i didn't think those restrictive employment clauses stood up in court?

Lee247

Can't give any advice re start up costs but just a little comment to bear in mind.

We had a mobile Hairdresser, she was fantastic. She built up a very good client base, so much so, she decided to open her own salon.

Most of her clients went to her salon, myself included but her prices had to rise substantially to cover her overheads of shop/staff etc. She is now struggling, as most of us have not bothered going back.

Hope it all works out for you and your better half and best of luck if you do go ahead (oops excuse the pun)

EddScott

Thanks for the advice - Nat & Doc if we get to action stage I'd like to call on your advice if possible.

Went to have a look at the premises last night. The sockets are all in place for 6 to 8 stations and although the basins have been removed all the piping is still there for 3 basins. The landlord wants £2K a year with rates on top.

So we are planning for 3 washing stations, 6 styling stations and the reception area. Out the back theres a decent amount of space that was never used by the previous salon owners. Kelly would like to use this area for nails/beauty in the future if things were successful.

84of300 - I know what you mean, I've heard similar here. The biggest cost is going to be the equipment which we plan to lease if possible. The rent is quite cheap but water and electric will probably cost a fair bit. Kelly has existing clients but really "belong" to her current employer. Many people have said this 6 month thing is unenforceable but I've read a few court cases and the employee doesn't come off scott free.

She can really only take a sabatical, do some mobile to keep a bit of money coming in and then once her 6 month is up she can pretty much do what she wants and hopefully entice existing clients to her. There is also a half mile clause and I think the location is within half a mile so she may have to muddle through for say 4 months, take a couple of months getting everything in place and then at the end of month 6 open up with plenty of gusto.

At least thats the plan

j4ckos mate

ok ,
well our shop is old, and i would love to spend some money on it but its not my decision


we are on a main row of shops in an affluent area with a big car park behind.
make sure your landlord doesnt expect you to pay for this we have to !
ours is old and could probalby do with a refit, alot of the customers are old dears, the local pop are either asian or older, knowing that they come week in week out rain or shine, i would not make it mega trendy and make them feel uncomfartable, so market the salon to your local custom.
my top tips would be as follows.

dont make it too trendy for all the steady eddie old dears to come in,
get a nail bar put in, mega money in that,
try and rent the chairs out of you are struggling,
dont forget the power of targetted advertising,
we have a gents italian barbers rent of us upstairs, its regular income whether you are quiet or not.
any local office blocks nerarby leaflet it.
are there any nearby,there is a t/paul right near us and a couple of few trendy ones as well, thats why we wouldnt spend tens ogf thousands doing it up just to pinch one or two of their customers.
if there is any local ones, make friends with them not enemies, you will be surprised how many walkins get sent to us for the others, not only that you can nip and borrow stock off them when you need to.
get a good plumber make him your friend, you will need it at all hours of the day.

to be honest ours could be pushed alot more,
my mother in law has it and its purely to run for andrea and her sister and to fit in with the school day, sometines its shut at 2.30.
so we can pick the kids up form the school. but its made its money.

ideally i would have liked them to have one each and just come in and do a few odds and sods, and let someone else do the work, but we never ran down that route.
the downsides.

anybody remeber my christmas day night post about it being broken into on christmas day.

it regularly gets pissed up against as its next to an indian restaurent, and there are kids hanging around as there is a web cafe next door.
all in all its worthwhile, and its runs purely to suit us and the times of the kids school day, when they are older i dare say we will sell it.

EddScott

I think you can make it waht you want really. There is a couple of salons close by and I think Kelly knows them reasonably well. When the place was run as a salon before it lasted a good number of years and the two girls that ran it used it to pass the time in between drinking and having sex.

Its just a case of proper financing for it and although Kelly has been in managerial rolls before in restuarants and home caring she hasn't been in charge of a salon yet. She has only been qualified a couple of years. Her boss is expecting a baby and Kelly will be put into a manager role whilst the boss is on maternity. This will give her good grounding when she feels its time to set out on her own.