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