Leasing an existing salon

[BannerPenguin]

Obviously I don't know what's there but for someone who's just re starting from home and more than likely taking 90% of the business away from the salon she's selling it's silly money.

It's not worth much I wouldn't of thought if she is just moving to home. She isn't really selling... more like relocating.

She can show you the books and even if they show a good profit that's fine but as it's her doing the clients they will follow her more than likely. It's not like someone owning a salon or is a manager with a few staff all bringing in money. In my opinion - she leaves, the profit leaves.

 

[persianista]

From the other perspective, I'm in the process of selling a lease for more than that right now.

 

[lashed11]

Hi geeks,

I have an update. I explained to the owner that I'm really looking for a "shell" that I can make into my own clinic, and asked what the premium would be for the client base. Her reply was that the rental would increase to £13000/year, and client base £15000. Which is definitely more manageable.

However. On my way to the salon to have another look, I actually stumbled across another property for lease. This property is actually on the main street where lots of people walk up and down for work, and lots of cars drive past, and it is close to big offices and connects the shopping district with another very affluent area. Space wise, it's actually bigger than the salon I have been talking about. The rooms are more spacious, and potential reception area a lot more spacious.

I'm going to check out this place tomorrow, thoroughly. If it all looks great then I will then potentially have the dilemma of do I go with the salon that's been there for 30 years and pay £15000 for client base, or do I start from scratch and have an extra £15000.

With this property I've spotted today, there is a salon across and up the road that offer nails, facials and massage. I see competition as a good thing, it shows demand but at the same time it makes me nervous. I really need to hone in on what my USP will be. I really want to provide therapeutic treatments, i.e. my sports massage to treat migraines and repetitive strain etc, but I want to provide it in a really relaxing and "trendy" environment. Most of the places I've been to for massage are either girly beauty salons, or really clinical and dull therapy centres. I'd really like to create a calming and welcoming atmosphere. Could this be my USP or does it need to be more treatment focused?

If anyone has any pointers, I'd really appreciate them.

Thanks geeks

 

[Beckybee]

Goodwill and client base is all well and good, but there is no guarrentee they will stay.

For the money offered for them, you could spend on fixtures and fittings, or even advertising to start off your On my way! client base.

As mentioned before normallywhenbuying a company it's written in the agreement that the seller doesn't work in the same field again or not start up for a certain period or do not start up again within say 5 miles

Personally I'd start from scratch

 

[Cheshire_Gal]

You may be taking over an existing salon, but from a customers point of view its a new salon. Some may go with the owner, some will try another new salon, some will stay with you. You can pay for goodwill but its not guaranteed. Save your money and start afresh.

 

[kimi1101]

Erm so how did £38k go to £15k? You will pay £15k for a client base she is planning on taking some from (guess she's still not owned up to that yet?)

You need proper legal advice. I have just been through this, I bought a salon and basically paid what I would have cost me to kit out an empty shop and buy all the stock. I wouldn't have paid any more. Clients are people, they do not belong to the salon, they are not obligated to continue visiting the salon, especially when nothing will stay the same. Maybe her clients like the way things are? Maybe the new look, treatments, products won't suit them? Why pay for a clientele of a business you don't rate?

I'd recommend the empty shop. As a side note, the last salon I bought the owner originally wanted £20k. I paid £5k, and that was for fixtures and fittings. I have about ten clients from before we took over.

All the best.

Please do take legal advice if you go any further with this woman.

 

[lashed11]

Hi Geeks,

Another update. Just seen the second place that I mentioned. It's amazing, SO much more spacious, 3 rooms plus a massive room at the back (4 rooms in total), separate wc and kitchen and spacious waiting area...On the main Street with good footfall, and all for the same rental that the first salon was wanting.

Only thing is, because it's through a commercial agent instead of the property owner, the application process will be more complex from what I've just heard. I know I need to get a solicitor involved and references. Which I am a bit nervous about because I stay in my boyfriends house so I can't use him as a ref, so I'm not sure how that will work. Could I use my landlord from one year ago?

So now, in comparison to the first place, I would much rather spend £15000 marketing my own place than potentially spending £15000 on air.

So I think my mind is becoming clearer with what the best thing to do would be. Now I'm just bamboozled because I've never leased a commercial property, only residential and I know the whole process is different.

Does anyone have any tips for my application? Thank you geeks

 

[squidgernetball]

I leased my property through an agent, but didn't go with a solicitor. I read all of it through, and made sure I understood what I was signing - break clauses, responsibilities etc. I found it pretty straightforward. I luckily had a sort of mentor at the time who was a qualified solicitor but wasn't practising, so he gave it a thorough read, and advised me, in exchange for a full English - it worked for us!

I was able to also get help from the letting agents on areas I wasn't clear about.

My landlord is responsible for the exterior of the premises, and I'm responsible for the interior, which suits me as it's a very old building.

It sounds like you have found just what you're looking for.

Good luck

Vic x