Opening a Hair Salon. Part Four

The All Important Lease Part Two

• Whatever they’re asking for rent, take 20% off, but always say you’re negotiable; this is what it’s going to cost you !!!!!!!!!!
  
• You can set a commencement date to stretch things out and pay the security deposit first then the rent when you commence your lease.
• Don’t be put off if your agent hasn’t got back to you but keep ringing. You might know someone he knows so try everything to find out who the owner is: talk to the neighbors, make them your friends so they want you there as well. You are going to make it pumping for everyone, the owner is getting a great long term tenant – be pushy!
  
• Lawyers are over rated, but well if it’s your first lease think about it. Cost aprox $500-750.00
• You only want the standard commercial lease relevant to your state/ country minimal yearly increases in rent, it’s all negotiable.
• Your rent free period is in essence what gives you the ability to build a salon with not to much else. (except your scissors which you can get for less from www.scissorsforstylists.com.au)

Cheers
Jeremy

Open a Hair Salon. Part Three

The all important lease

The lease is the cornerstone of your new business. Without a good lease you’re only building yourself another job to go to.

• Ok, you have to put a proposal to your new agent/best friend. It’s all about what you want!!!
• Propose a 3 year lease with another 3 yr option and another 3 yr option as a minimum, or 5 yr x 5 yr and more if you can.
• You only want to pay between $1200-$2000 per month rent.
• You want 3 months free rent for the fit out period, after all, you’re going to spend money improving the space so you want compensation.
• You’ll pay one month’s rent up front and another month as a security deposit. Try and have the security deposit held in an interest earning account.
• In your proposal, say you are going to spend $30,000 on the renovations and fit out but do not put a time frame on this as it could take a year or two. Time is your best friend and you can make it work for you.
• The agent will want references – really they just need boxes filled out and some people to ring so this could be virtually anyone.

The lease, to be continued…
Cheers
Jeremy

Open a Hair Salon Part Two

The key point from my last post was…

You want to build a business not only a job. All your hard work should create a business with value.

Getting Started!

• You’ve got to have the ‘want it’ attitude!!!!!
• You’re a hot stylist, colourist or beautician who wants to build a business and be your own boss.
• You’ve got a few loyal clients who will follow you!

The Space!

• Find a cheap shop: size is important! Even more important is location – does the foot traffic flows well? Is there parking nearby? If in doubt: Location Location Location!!!!!!!!!!!!!!!!
• Check the areas demographic. You can check this out online usually through the local council or government.
• Found a shop you love? Floors ok? Check. Has a hot water tank? Check. Got a sink? Check. Maybe toilets, too?
• So now you’ve met the landlord/agent. Time to make him your best friend, after all, you need to cut a good deal with your lease. This is a very important part of what you need to do to make this a profitable business not just a job. Don’t skimp on the charm!!!

Cheers
Jeremy

Open a Hair Salon With Only Your Scissors

My name is Jeremy Hoolihan I am a hairdresser. I’ve been building salons in Australia for the past 20 years. I’ve had successes and failures but I can build a salon from next to nothing so I’ve always bounced back from any setback.

Through practice I’ve found out the easy and cheap way to build a salon that is not only a job but a business.

The trick is all in the lease you sign. It can either make your salon a saleable business or it can mean a lot of hard work for nothing. Sign a lease for the long-term and negotiate a great deal. Follow your gut and don’t listen to doom and gloom. I hope the tips I provide over the coming weeks give you the ability to realise your dream.

Go for it! Wait for nothing!

The earlier two posts were written by my friend

• Introduction I thought I should also write my own.
• Getting the Cash Together That’s good advice, but you know what, I always found my salons first and worried about the money later. You decide what’s best for you.

I decided I should completely take over and will post my tips in my style.

Jeremy

Step One: Getting the Cash Together

How much cash do you need saved up to open your own hairdressing studio? Less than you’d think. I’ve opened five hairdressing shops and never once has it cost me more than $20,000.

One of my hairdressing salons only cost $5,000 to get in the door and I borrowed every single cent of that money.

Yes, I opened my own shop with no money down and you can too.

How much have you got saved now? None? Twenty grand? Come on, seriously take stock and figure out how much money you have saved or squirreled away. Now go get a kid’s exercise book and write down that amount. You can buy a book for less than a dollar; I buy mine on sale at Kmart for eight cents! It will be the best dollar you’ve ever spent. From now on I want you to write down everything about your new hairdressing studio in one book.

Go on, write down how much you have saved. “I have X dollars saved for my new shop.”

Now how much could you borrow from family and friends? Figure it out and write it down.

Finally how much can you save every week? Figure it out and write it down. Then double that amount and write that down as your weekly saving target. Did you first think of $100 a week? Then your target is $200 every week. If you really want your own shop $200 a week should be easy. Just keep thinking about the shop and reading this series and you’ll be styling hair in your own hairdressing studio before you know it. Stop letting your money go down the drain each week!

To help get you in your own studio grab a copy of this Free Excel Spreadsheet for managing you initial start-up expenses and capital.

If you start saving now and work along with this series you should be in your own shop within a year. If you already have most of the cash saved or can borrow it then you could be sorted within a few months.

to be continued…

30 Steps to Open Your Own Studio

I’m really excited. I finally manged to get Jeremy Hoolihan to share his expertise gained from opening five hairdressing studios. Jeremy is going to share his secrets on how to get into your own shop as fast and successfully as possible. He’ll tell you how to save money, how to find the best location, how to negotiate the best deals and how to avoid the common pitfalls.

Whether you’ve got no money saved or are already looking around for a shop this series will save you money and hopefully help motivate you to take control of your own destiny.

I’ll add the links here as Jeremy writes the articles, so you can bookmark this page or better yet subscribe by RSS (Click the Orange Circle to the right above)

• Step One: Getting the Cash Together
• Step Two: Location Location Location