Starting out ..... help!!!

[Dongybear]

Hi everyone,

A quick brief:
I was a hairdresser and beauty therapist for 8 years before deciding I no longer wanted a minimum wage job and retrained as an accountant. I have now decided I want to go back to the career I was more suited too but I want my own salon.

I'm just wondering how people survived/lived with other financial responsibilities as well as the new business costs? I'm a single mum to two children and I'm pretty much debt free apart from my car finance but do have 2 credit cards free with a total of £4000 available to use if I need it on them. I have also applied for a business start up loan but it all seems a bit daunting at the minute. I'm just wondering how I'll pay my rent and buy food etc in the first few months that are bound to be hard.
Did anyone lese feel like this? How did you all manage?

Thanks
Melissa

[Fulcrum]

I don't know the rules in your area, but keep your day job and start cutting hair from home in the evenings if possible. This will help with keeping overhead down maintaining some income during your start up.

[Dongybear]

Thanks Brad, I have been doing that anyway for the last four years but its too much doing both so I was thinking of just plucking up the courage and taking the plunge. :confused:

[MyITGuy]

The recommended way to go out on your own would be to have the cash reserves to sustain your personal spending/bills while you build the business, in addition to your business expenses.

I'd recommend at least 1-2 years of expenses as a reserve.

[Dongybear]

:( I don't think I'd ever be able to save that much money! I've not even been able to save for a deposit for a mortgage with a nine year old and a four year old. It seems like you need to have money to try and make money in the first place. Although I do understand that its very risky to lend to somebody who has nothing to begin with.

[MyITGuy]

:( I don't think I'd ever be able to save that much money! I've not even been able to save for a deposit for a mortgage with a nine year old and a four year old. It seems like you need to have money to try and make money in the first place. Although I do understand that its very risky to lend to somebody who has nothing to begin with.

Unfortunately that would be the case if you're wanting to obtain a loan from a financial institution. Banks aren't in the habit of giving away money, so considering that 80% of businesses fail in the 1st 18 months, banks need to do what they can to protect their profit/investors by ensuring you either have assets in place to protect their investment or a good/strong history of revenue that they can use to justify the risk.

To do anything else would be a risk and would force your hand if you don't have the financial reserves and ultimately you could find yourself in a position that is worse than it is today.

Are there ways to mitigate this risk? Sure, but you have to be the driver/decider in this.

I.E. Its my understanding that most/all hairstylists are contractors who pay $x/Day to rent a chair.
Do you have any colleagues in the business who would commit to X Days per month on an annual agreement (I.E. I commit to 12 days a month for 1 year) ?
Would these commitments/agreements be enough to cover a lease/utilities, supplies and marketing for the physical location(s)?
Can you maintain your existing job to pay for your bills (and any uncovered bills from the business) until the business generates enough income on a steady basis for you to leave your current job?

[Dongybear]

Thanks Jeff, they are certainly some good points to think of!!! In England rent a chair doesn't seem as popular as maybe it is in the US but its definitely one way of looking at some guaranteed future income! Great idea ;) Unfortunately I couldn't stay at my current employment if I decided to try my business venture, but maybe I could take on a few bookkeeping jobs or use my accountancy skills in someway.

[moneyisgood4U]

maybe you could find a salon that you could buy into maybe one that needs help. Or find one where the owner wants to retire or maybe you could take it over and they can start another one. I know of people in the states that start a salon it gets going and they want another. Also I would think that building a following would be extremely valuable. Then you would have something to bring to the table.

[Business U Consulting]

Hi everyone,

A quick brief:
I was a hairdresser and beauty therapist for 8 years before deciding I no longer wanted a minimum wage job and retrained as an accountant. I have now decided I want to go back to the career I was more suited too but I want my own salon.

I'm just wondering how people survived/lived with other financial responsibilities as well as the new business costs? I'm a single mum to two children and I'm pretty much debt free apart from my car finance but do have 2 credit cards free with a total of £4000 available to use if I need it on them. I have also applied for a business start up loan but it all seems a bit daunting at the minute. I'm just wondering how I'll pay my rent and buy food etc in the first few months that are bound to be hard.
Did anyone lese feel like this? How did you all manage?

Thanks
Melissa You should start out by putting together a business plan.

[webfanatic]

Starting a business that has high start-up costs, upkeep etc.. when you're barely making it as it is, is not the best thing to do. You may not be profitable the first couple of months or so. Expenses continue on whether or not you're making enough money as a hairstylist.

I suggest that you do continue your accounting career, but get more clients, higher paying clients, etc. and just save up for your business.

[Enock Machodi]

Hi everyone,

A quick brief:
I was a hairdresser and beauty therapist for 8 years before deciding I no longer wanted a minimum wage job and retrained as an accountant. I have now decided I want to go back to the career I was more suited too but I want my own salon.

I'm just wondering how people survived/lived with other financial responsibilities as well as the new business costs? I'm a single mum to two children and I'm pretty much debt free apart from my car finance but do have 2 credit cards free with a total of £4000 available to use if I need it on them. I have also applied for a business start up loan but it all seems a bit daunting at the minute. I'm just wondering how I'll pay my rent and buy food etc in the first few months that are bound to be hard.
Did anyone lese feel like this? How did you all manage?

Thanks
Melissa
I'd suggest that you sit down, compose yourself and analyze whatever it is that you want to pursue. What is it that you love doing with so much passion? It's better following this route, otherwise trying to pursue several things at once will get you nowhere. Find that one thing, pursue it to the max.

[veritasvisions]

Hey Melissa, I've owned my business for almost 4 years now and on my way to about 200k in revenue. The way i started my business is no different then the way you should start yours.
Here are my thoughts:

1) in order to be successful, you are going to have to humble yourself and do things others just won't do. YOu are going to have to make calls, do a ton of networking, pass out flyers, and just work work work until you can start hiring other people. Then you can be more efficient with your time.

2) i want you to let go of any notion of "annoying" people. Don't even let that mindset sliver into your thoughts. It will absolutely destroy you. Also, listen to me, do not do not do not allow people to tell you that things will not work and that you shouldnt do them. For example, if people tell you that you shouldnt make cold calls, don't listen. Try everything out.

Here's what i would do if i were you

1) i would go to very populated areas, pass out flyers, bring a chair and tools, and start giving haircuts right there and then.

2) I completely support you getting a business loan but not in the beginning. A business loan should only be taken out to grow an existing business NOT TO START ONE. Trust me on this. You are going to have to hussle your way to the top at first. Getting a business loan will simply not help you in my experience. It will create a false sense of security. Real security comes from a skill set you have gained at building a business. If, however, you have the skill set and want to invest in a new method of advertisment, i fully support you getting a business loan and actually encourage it.

3) Melissa i felt like how you feel. Trust me everyone does. Everyone is cut from the same cloth. What you have to realize is that you HAVE to make it happen for your children. Not only financially but to show them anything is possible. If you work your ass off, eliminate all distractions( and i truly mean ELIMINATE), you will find a way to make it work.

4) Always keep a positive attitude and KEEP LEARNING NON STOP.

[Alexcook]

I want to go back to the career I was more suited too but I want my own salon.
I don't understand why are you putting conditions for the work you love to do. Well, if you are looking forward for returning to the work which suited you the most then what is the need to own that business why not to first employable to some place & then go for it.

[Harold Mansfield]

Also, listen to me, do not do not do not allow people to tell you that things will not work and that you shouldnt do them. For example, if people tell you that you shouldnt make cold calls, don't listen. Try everything out.
.

Do you realize that you keep telling people not to listen to anyone else except you?

Your advice to a salon owner is to cold call people? How exactly does that work? You just pick up the phone book, call random people and say "Hey, do you need a haircut"?

I'm honestly asking. You keep saying that cold calling is the best marketing for everyone. So how exactly does the OP use your advice to gain new customers to her hair salon? And how does she implement this while she's busy actually running her salon and serving clients during business hours?

If you're going to keep telling everyone that this is what they need to do, eventually you're going to have to back it up with some specifics on how this supposedly works for everyone.

[veritasvisions]

Do you realize that you keep telling people not to listen to anyone else except you?

Your advice to a salon owner is to cold call people? How exactly does that work? You just pick up the phone book, call random people and say "Hey, do you need a haircut"?

I'm honestly asking. You keep saying that cold calling is the best marketing for everyone. So how exactly does the OP use your advice to gain new customers to her hair salon? And how does she implement this while she's busy actually running her salon and serving clients during business hours?

If you're going to keep telling everyone that this is what they need to do, eventually you're going to have to back it up with some specifics on how this supposedly works for everyone.

Sure i can. I personally hate making phone calls and i dont even suggest that she has to make them herself although it would be optimal. Obviously, once you have relationships, you won't have to do as much due to repeat business but it's always helpful in my opinion.

What i would try if were in her position is two things. I would try to find big park or place with a ton of traffic, or kiosk at a mall, and offer my services, but i would look professional as possible. With regards to cold calls i would provide some value add that will entice people to come by. I would say something like ' Hey my name is michelle, I don't thinnk we know each other personally, but i just started a salon business and i'd love you to come by for a haircut and free 15 minute massage, when is best for your haircut?". Or i would try to target familes that have multiple children and offer a buy two get one free discount with all phone calls. Michelle, i'd venture to guess, if you got good, you could set 1 appointment in every 30 calls you make.

Other then that, you could do event marketing. You can add an account on meetup.com and have weekly events.