Discussion in 'Starting & Running a Business' started by equityma, 24th Feb, 2020.
I'm looking for a suburb in outer Eastern Melbourne to establish a new nails shop.
Any ideas please.
Set one up next to a Bunnings store as the builders can just nip in.
I hope your buy price is good as Bunnings will try to undercut you.
Will you supply the power tools and nail guns too ?
Sorry a nails salon
We need context - tell us a bit about yourself, experience with running business(es), capital available, and reasons you are wanting to do this....
Do you have a business plan?
Are you buying a franchise? Eg Jim's Nails
An existing business?
Starting from scratch!
Do you have the capital for the fitout?
Retail Lease negotiation skills?
Do you have a solicitor & accountant who can advise on the lease?
What sort of premises are you looking at? Inside a shopping centre, strip shop or standalone site?
. Tired of being as a factory worker with a gross income 1k/wk
. Tried other jobs as Pathology, Trash&Treasure attendant, Coffee maker, Cookwares consultant.
. Attempted to open a Cafe shop but the business was risky due to expensive rental fee in a standalone site.
. Got a special deal under 10k from a closing down nails salon in the city valued at 60k. The owner got the buyers but the sale didn't happened due to some problems with the landlord.
. To open my own business and to establish a new nails salon in a strip shop in Melbourne outer Eastern suburbs.
. To hire 1 or 2 highly experienced staffs with two assistants.
. To turn my hobby interest into a trade.
. Got a 3 months training in an existing nail salon and some training in a school in my country.
. Currently working in the nail salon and working for friends outside work hours.
Accounting and related field
. Had an accountant to advise on my previous attempt in a Cafe shop.
. Having another better accountant in mind
. No retail lease negotiation skills
. Paying mortgages for 1 IP and 1 land. Debt is about two third of my 100% equity in my current house.
. Eligible to apply for another house for 500k if needed.
. Unable to pay mortgages if there's only one income when I decide to get out the workforce.
. Ready to sell the land to compensate for a loss of income after a few months involved in the new business.
. Had some money for redraw in a housing account.
Not sure where to start...... while I applaud your entrepreneurial spirit to go and do something...
is a really bad driver to start a business IMHO.
That's pretty ambitious in my books ~ I'd be really super happy for you if you can get $52k pa paid to you by your business ... but that's going to take a lot of doing.
Again, you would be welcome in one of the shopping centres I have money in, but the rent can be very high:
$1,000-a-day rents see small retailers flee shopping centres
On the other hand, if your shop is in some strip somewhere, you could be in dire straits in terms of foot traffic.
What do you offer that other nail places do not?
I missed this bit - talk to your friends! Get figures from them - how much turnover per year (allows seasonal variation), profitability, etc.
Do you have any reliable numbers? Revenue, costs?
Experience managing staff?
why is the current owner selling and what will you do different? You want to know exactly why the other buyers fell through.
My nephews wife runs a successful nail business in the UK . . . . but she started from home and built it up from there slowly.
Its now reached the size where she has an extension on her home and rents out the extra spaces rather than doing much herself.
If you have already got some private clients that seems a safer way than needing to sign leases and do a shop fit out.
Don’t do it.
Well said!! Took the words right out of my mouth.
Except the last line, as there seems to be a generic asian run nail store on each corner (which is where I assume op is from)
What was the rental on those premise ?
When you do your numbers calculate down to the hour to see how much income you need
Five staff plus premise could be $300k pa say $6k pw $1k per day $150 ph
What are your realistic sales per hour every hour ?
You could need $150ph every hour
I'm a Nail Tech & have previously owned & operated my own nail & beauty salon.
I think you will need a lot more experience in doing nails than 3 months, people are pretty fussy with their desired outcome of their nails & it takes a lot of practice & experience to get it right on the different needs of clients.
Also you would want to build up quite a large clientele first before you venture into a commercial property, as you'll soon find out there are a lot of expenses that eat away at your profit.
You'd also want to lease chairs in your salon to other nail techs, beuticians & hair dressers to put towards your monthly bills & cross clientele.
I ended up selling my salon as the hours I was putting in & the stress of having to do the books & all of that was not worth the income I was bringing in. Much easier to work from home or for an employer.
I'm not saying don't do it, but the most important thing is having the regular clients beforehand.
the mindset I tell people to go into these sort of small ventures, is to expect, virtually zero sales for the first 1 month, and never to rely on expectations such as "I think I can do 10 clients per day"
let alone rely on the income to pay mortgages etc. etc.
Four questions for the OP from their Business Plan:
When is your first break-even week (when the revenue for the week equals/exceeds the expenses)?
When is your first break-even month (when the revenue for the month equals/exceeds the expenses)?
When is your first break-even year (when the revenue for the year equals/exceeds the expenses)?
When does the business truly break-even for the first time (when the revenue since opening equals/exceeds the expenses since opening)?
I think they're a goer.
I get my toenails cut at a salon and for a bit extra they throw in a massage.
Place is always full but there is that strong acetone smell that must be a health hazard.
Does it back onto the Chemist?
No. It backs onto a carpark.
I once did a business plan for a hairdresser
When I broke down the cost per hour based on a normal working day the hairdresser was shocked to see even working every hour of the business day she couldn't make even a normal salary ..needless to say she did not open the shop!
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