Starting a hair salon and think I need a reality check ??

[Dream79]

Hi All,

Just joined today!! Bascially I'm thinking of opening a hair salon with a friend. Im in the process of writting a busniess plan. We havent set any dates yet but hopefully in around a years time (gives us time to save)/research/plan. I am not in the hair/beauty industry myself but find the concept of starting a business in this sector to be both exciting and a challenge.

We plan to open a salon in the same area as my friend currently works in the hope that he will bring with him most of his current clientele as well as another employee from the same branch, he seems pretty confident about his current clientele and thier loyalty to him especially as he will be providing the same service for a cheaper price but, this is business and i cannot rely on his word. We also plan to employ another 3 senior stylists. Now, im trying to forecast financial results and am confused about how to predict what the salon will earn. I know what my friend earns now as well as the other employee but how can i translate this to our salon. He works for a HIGH standard salon and we plan to undercut the competition (slightly) while manitaining if not exceeding the same standards.

The reason i title this "reality check" is that no matter how many times i try to calculate i keep coming out with earning a profit and thats with both employees earning half as much for our salon as he is now for his current salon.

So i guess my question is what can i assume about his/their current clientele and has anyone had any experience of this.

Thanks for any help

Dream79

 

[V2008]

Hi,
I am in the same position as yourself... I recently completed an NVQ Beauty Therapy course in college and am in the middle of writing up my business plan... No matter how much I research I cannot predict the income!! Especially with this recession going on.

I plan on opening just in time for Christmas and am in the middle of researching everything I can so I don't get any nasty little suprises!!

Anyway sorry I couldn't help but Good luck with your plans!! : ) x

 

[fozzyo]

Talk to your local Business Link and also your your local Small Business Manager at your bank - both will be able to help and offer guidance.

 

[angone]

I am in this position as well - i'm in the process of opening a beauty and tanning salon situated in a popular shopping centre in my area. I was lucky enough to have the money to do this upfront due to the sale of a house. So even tho i dont need a lend of money i still needed to do a business plan to ensure the money would last.... needless to say i have just discovered that there is a possibility that it wont last. The shopping centre wants a rent deposit plus a years rent which is almost 150k plus we have to do a total shopfit - about 50k - its crazy money - you just never know if you are going to make it as you dont know if you will get the customers. I have done a worst and best case scenario and another one where my therapists will have to reach targets! And yeah, i kept getting results that i would make a profit until my accountant looked at it and said "what if you dont get the customers". Its a lot of money to throw away! So dont know what to do now!

Anyway hope it works out for you!