New Beauty shop advice

[jamie_h]

Hello, i am new to the forum and i was looking for some advice. I have been left some money off a recently passed away relative. I wanted to put this money to use so i had a talk with my sister who does beauty, nails, eyelashes, spray tans and all the rest and she said i should rent out a shop and she would do the beauty, theres a local shop up for let in quite a busy area for £50 a week which seems really cheap. Is there any tips or suggestions any of you could give me on opening a new business i am only 18 and just want to put this money to use and not spend it on stupid stuff. Thanks.

 

[gemd89]

Theres a shortage round this area of mobile beauty therapists and hairdressers, with 2 young kids i find it a nightmare to get them into town or shop while i have hair/nails/eyebrows etc done and alot of other mums i know would love someone to come to their house. Have you looked at netmums etc to advertise on their for free for mobile services, would keep your overheads down.

Gemma

 

[jamie_h]

My sister already works at a hair dressers doing nails, eyelashes, spray tans but she would work in a shop on her own if I rented the shop out and I think she does like a home care service already to certain customers, but thanks for that recommendation its give me a good idea I could print some flyers offering a home beauty service and posted them around my town. Just a question. What other costs is there to pay if I opened this shop apart from the obvious ones like gas and electric?

 

[Pete31]

Hello, i am new to the forum and i was looking for some advice. I have been left some money off a recently passed away relative. I wanted to put this money to use so i had a talk with my sister who does beauty, nails, eyelashes, spray tans and all the rest and she said i should rent out a shop and she would do the beauty, theres a local shop up for let in quite a busy area for £50 a week which seems really cheap. Is there any tips or suggestions any of you could give me on opening a new business i am only 18 and just want to put this money to use and not spend it on stupid stuff. Thanks.

Are you sure the shop is £50 per week? Sounds very cheap? You will need to budget for a rental deposit, monthly rates, utilities including telephone, insurance, credit card machine and also have something in the kitty for when you don't break even. Agree with Gemma look at the mobile route, just so you can get some clients (if your sister hasn't already got any) and you can learn the industry, if you do well then you can look into moving into a shop. You don't want to sign a lease for a shop unless you are 100% certain that you will start earning from day 1.

 

[jamie_h]

Are you sure the shop is £50 per week? Sounds very cheap? You will need to budget for a rental deposit, monthly rates, utilities including telephone, insurance, credit card machine and also have something in the kitty for when you don't break even. Agree with Gemma look at the mobile route, just so you can get some clients (if your sister hasn't already got any) and you can learn the industry, if you do well then you can look into moving into a shop. You don't want to sign a lease for a shop unless you are 100% certain that you will start earning from day 1.

Thanks for popping in yes 100% its £50 a week my sister knows the shop owner , how much does insurance and the credit card machine cost?

 

[Rhodes100]

Starting business minus business plan equals disaster.

There is the old saying inherited money burns holes in pockets, you have had a windfall, your relative has given you a chance dont waste it.

Talk to your local business link they will be able to give you advice so you can be sure that you are setting yourself up for success.

An alternative is to buy a business in your area (I.e someone who would normally be a competitor), google it and you will find the websites. You still however have to be careful with nail and beauty businesses as most of the goodwill may be personal goodwill (customer base) that may disappear when you buy.

So look before you leap.

 

[sri_130]

Do you plan to work in the shop? what is your input? what are you taking out as a wage?

Basic costs taken from my wife's example:

Rent
Rates
Liability Insurance
Buildings insurance contribution
Water
Electricity

Stuff your sister will fork out for:

Phone line rental + calls
Stock + retail stock
Furnishings + tools of the trade
Card machine rental + transaction charges
A till?
furnishings + tools of the trade
marketing

Be crystal clear what your return is and where you fit in with this business before undertaking anything. The £50 a week lease, what does it actually mean? what are the break clauses, how long is it for...

Plenty of research to be done, but start one at a time (and take your time).

Best of luck to you.

 

[sri_130]

Starting business minus business plan equals disaster.

There is the old saying inherited money burns holes in pockets, you have had a windfall, your relative has given you a chance dont waste it.

Talk to your local business link they will be able to give you advice so you can be sure that you are setting yourself up for success.

An alternative is to buy a business in your area (I.e someone who would normally be a competitor), google it and you will find the websites. You still however have to be careful with nail and beauty businesses as most of the goodwill may be personal goodwill (customer base) that may disappear when you buy.

So look before you leap.

Excellent advice.

 

[jamie_h]

Do you plan to work in the shop? what is your input? what are you taking out as a wage?

Basic costs taken from my wife's example:

Rent
Rates
Liability Insurance
Buildings insurance contribution
Water
Electricity

Stuff your sister will fork out for:

Phone line rental + calls
Stock + retail stock
Furnishings + tools of the trade
Card machine rental + transaction charges
A till?
furnishings + tools of the trade
marketing

Be crystal clear what your return is and where you fit in with this business before undertaking anything. The £50 a week lease, what does it actually mean? what are the break clauses, how long is it for...

Plenty of research to be done, but start one at a time (and take your time).

Best of luck to you.

Im at college 2.5 days a week but i will work there the other days. We havnt really discussed all the costs and what im going to take out and what shes going to take out as a wage yet i just wanted to see what other people thought about the idea. Shes already got everything apart from the spray tanning machine which i will buy, which will cost about £200. How much does Liability Insurance and Buildings insurance contribution cost?

 

[sri_130]

Im at college 2.5 days a week but i will work there the other days. We havnt really discussed all the costs and what im going to take out and what shes going to take out as a wage yet i just wanted to see what other people thought about the idea. Shes already got everything apart from the spray tanning machine which i will buy, which will cost about £200. How much does Liability Insurance and Buildings insurance contribution cost?

As an idea, it sounds fine. Its what you do after the 'idea' stage that will determine whether it has a chance of working. You need a business plan now and help from whoever you can get it from, before you spend any money.

Building insurance, depends on what your lease agreement is. You may have to pay a contribution or all, or whatever is written/agreed. You haven't seen this yet, so seen as though the 'shop' is the staple of your idea, get a copy of the proposed lease agreement from the landlord or property agent.

Liability, I think basic public liability for statups in beauty/hair was about £15 per month - but that was 3 years ago, when I last researched it.
google is your friend.

 

[deniser]

These questions have been asked many times on this forum.

I suggest that you take a day out to read this forum - there is more advice on here than you can imagine.

 

[jamie_h]

These questions have been asked many times on this forum.

I suggest that you take a day out to read this forum - there is more advice on here than you can imagine.

Thanks will do that today.

 

[Pete31]

Insurance will be approx £30-50 per month (maximum) - liability and buildings insurance. You can get a quote for both these before you start up so you know exactly how much you'll be paying. Credit card machine budget approx £35 per month it will increase as your business takes off (some plans are relative to how much you take on cc machines).

 

[Simply Business]

Hi Jamie H,

Just to give you a bit of guidance regarding public liability (PL) insurance - I work for a small business insurer and PL covers you if a member of the public gets injured whilst they are on your premises. PL cover can be included in the overall shop insurance which can also protect your shop fittings, stock, furniture and shop front. I speak to lots of shop owners that rent their premises and it's in your interest to find out if the £50 a month has any additional cost's - the estate agent should be able to give you some figures to work with.

Kind Regards
Tim

 

[cautiouscapy]

Have a search and read of this forum too:

salongeek dot com

(I am not allowed to post the actual URL)

there are lots of UK beauty and hair professionals on here, from those starting out and asking similar questions to yours to those that have already built really profitable businesses who can answer those questions.

A hint - search the forum first before asking a question as similar questions have been asked many times. Just spend time reading.

CC

 

[bjbellchambers]

Hi Jamie H,

For a shop you would need a shop policy (this could be extended to incorporate any mobile work you might do) You should budget around £300 a year for this and that would get you cover with around the following sums insured:

Contents £10,000
Stock £5,000
Business Interruption £500,000
Business Money £2,000
Employers Liability £10,000,000
Public and Products Liability £2,000,000
Legal Expenses £50,000.


This is, of course, an indication of what you can expect, if you pm me some brief details or a contact number I can provide a quote.

 

[Drpepper]

Try posting this in the new retail section.

I 100% disagree with buying a business, you'll be paying heavily for someone else's "vision" and probably just want to change 70% of it all when you move in anyway.

Cost - roughly:-

500sq ft retail area (as an example)

Insurance inc public liability, £1k cash left in shop overnight, basic contents (i.e tills, credit card machine, £30k stock, £20k fittings) £250 -£300 pa. Buildings obviously vary vastly but approx £300, doubt they are included in a £50 lease.

Credit card machine - join the FSB for £100 pa then you'll pay £15 a month rental instead of £28 (about!) and get a cheaper %, plus have the benefits of free legal advice etc (not that I've ever used any of their other services!)

Legal fee's approx £1,500

Shopfitting - anything really, but laminate flooring about £2k.

Signs - again variable but approx £700 for a alli' 8ft x 2ft

Rates - check these carefully, at £50 a week you rates will probably be more than this.

Stock/product cost - only you will know this

Advertising - essential to run regular campaign for a minimum of three months so people know you are there, and then remember you are there. Don't skimp on this. Cost - check with you preferred provider, but a weekly ad 3 columns x 10 cm's in a local rag will probably cost about £90 a week.

VAT - kicks in at about £70k mark.

Most important - DO NOT expect to take any money out of the business for a least three months, best to budget for a year with no income. If you can't manage at least three months don't start the business.

I think that's the basics, and as I said only a very rough guide. Hope it all goes well.

 

[PhilWarman]

Make sure that the liability insurance includes "treatment risk" which means any damage or injury caused by the treatments being performed - don't always look for the cheapest cover as it could come back to bite you.

 

[bjbellchambers]

I quite agree philwarman. That is just another reason why it is well worth using a good broker. My premium indication took this cover into account.

 

[PhilWarman]

I'm not doubting for one moment it did - just giving some advice.

 

[Benn]

Hairdressing and Beauty Salon insurances are generally quite cheap, however, the more facilities you offer, such as spray tanning etc, increases your liability premium.

Please feel free to send me a message and i shall be able to help you and give you some advice on what the risks are for you, as well as what you need to cover and some example prices.