Thinking of Buying a Beauty Salon? here is a list of FAQs
Q: I am thinking of buying a beauty salon which is for sale. I have some beauty qualifications, but I am a holistic therapist and would like to offer the therapies in the salon. I have been working from home and don’t know anything about owning a business; how do I make the move from a home-based business to a salon-based business?
Answer supplied by Andy, Business Link:
“There are a number of issues that you will have to consider when making the move from home to a salon.
You do not say what type of premises you will acquire with the salon. Are they, for example, leasehold, freehold or rented? This will not only have a major influence on the price you will pay but also places different obligations on you for repairs, for example. Make sure you use a solicitor who can explain to you exactly what you are taking on.
If you are actually buying the business itself, and not just the salon premises, you will also need to satisfy yourself that you are paying a fair price for it.
The sort of issues you will need to cover include:
- If you are taking on existing staff what terms and conditions are they employed on?
- Are there any pending legal actions against the existing business or owner that could affect you?
- Are there any environmental issues, e.g. waste water disposal that could cause you problems in the future?
Having satisfied yourself on this the next step is probably to raise the finance required to allow the purchase to go ahead.
Don’t forget to allow for any additional costs that will be incurred in refitting the salon and new equipment that you might require.
Any lender will want to see your detailed business plan to satisfy themselves that the business will generate sufficient cash and profits to repay their loan. Indeed, you yourself also need to make sure the business will be profitable before risking the purchase.
The details you will need to include in your business plan include:
- An executive summary – this is an overview of the business you want to start.
- A short description of the business opportunity – who you are, what you plan to sell or offer, why and to whom.
- Your marketing and sales strategy – why you think people will buy what you want to sell and how you plan to sell to them.
- Your management team and personnel – your credentials and the people you plan to recruit to work with you.
- Your operations – your premises, production facilities, your management information systems and IT.
- Financial forecasts – this section translates everything you have said in the previous sections into numbers.
You are legally required to make sure that anyone either visiting or working in your salon is safe.
This will include:
- employees working at your premises, from home, or at another site
- visitors to your premises such as customers or subcontractors
- members of the public – even if they’re outside your premises
- anyone affected by products and services you design, produce or supply
To show that you have taken this into account you will need to have a policy on Health and Safety, if you will have five or more employees then this policy will need to be in writing.
You will also have to carry out Risk Assessments not only for the salon itself but also for any chemicals that you will be using in the business.
Lastly, you will have to meet with other legal requirements including:
- recording and reporting accidents
- consulting with your employees on health and safety matters
- making sure that your employees understand and obey any rules you might have regarding health and safety.
For further information visit the Business Link website and The Health and Safety Executive website.