Starting a business with the credit crunch.?

Question

I am a beauty therapist and have found a great salon to rent. There are seven treatments rooms, though it would be only me from the start, and possibly my sister on reception. I would have the option of employing more staff, or renting out to holistic therapists, leasing a sunbed, etc.

The rent and rates work out at £11,200 per annum, there are obviously other things to consider such as insurance, pdq machine, banking, etc - I have most of my equipment and products ready to go, just need a few bits and pieces so there isn't too much needed for that.

The salon is apparently ready to go (haven't view it yet), with the reception area all ready.

My question is (and the reason I haven't seen it as, if I do, I'll probably fall in love with it and want it!): is it a totally stupid idea to try to open a business at this time? Especially in the beauty industry?

It's just down from the railway station, just off the high street and right next to a newish (around 2-3 years) shopping centre, which is basically the new town centre.

Thanks in advance.

Answer 1

entrepreneurs and experts give business advice and information http://www.businessempiremag.com/toolkit... you may find that site helpful

Answer 2

You are the expert. You have the saloon to rent as a back up support for your business. Why not take the first step, all business have risks to undertake. I think you have the expertise and the positive attitude and the risk management qualities to make your business a success. Take the credit crunch as a challenge. If you think your venture will succeed you have to work very hard to reach your goal.

Answer 3

If you do your research and plan things from the outset the financial climate should not impact on your ability to make a success of the business.

Business Link may help with getting you going and provide financial assistance if you need to have web site, book keeper, business coach etc.

Good Luck

Answer 4

You wouldn't be asking if you were sure, the rent is £233.33/week and the rates have a chance to be high based on prime location. You physically couldn't manage on your own even with possibly your sister, you couldn't be working non stop. You have to eat,use the toilet and prep/clean the treatment room between customers.

You would have 6 empty rooms, but could you attract holistic therapists and would one sunbed be enough if you are advertising the facility.

What's you catchment area and will customers leave their current provider to come to you?

New business makes or breaks in the first year of trading and spending patterns as we enter a recession will change drastically till people can calculate their new budgets. Opposition salons will run special offers to keep their customer base against your competition.

Dream high as they say, but I think you might be over extending yourself with too large a property to begin with. You have to get bums on seats and you and your sister aren't a big enough operation, but staff wages is a big gamble.

Not to say don't do it, just give it a lot of thought first.

Answer 5

If your business idea is sound it will work, credit crunch or no. You need to find out if there is much demand in that area for the service you're offering. Everything else sounds perfect though.

Answer 6

DON'T BE LAZY!!, DO YOUR CALCULATIONS!!

work out your costs to a realistic margin. ask your self if you have plan B that will assist in meeting COSTS. my mother always said that once you have trading space for your primary business, you can always stick a vending machine in the corner, selling cold-drinks. now that is not to say that you should be selling cold drinks. but the idea is to have a secondary prospect that may help with meeting your costs or generate an extra income if your primary business does well.

don't leave anything to luck, because you'll be job hunting all over again, except you'll have debts to pay. NASTY.

but generally, to start a business, you need to be smelling the profits/seeing the demand and not debating whether you'll have enough business.