Salon. Our desire will be to create a self supporting salon with renters to offset the cost of the startup capital needs as well as the sustaining growth of the salons present needs and future growth.
Each full time renter will be required to pay monthly rent of $550. 00 per month. They will be required to carry their own liability insurance as well as, file their own taxes. We will have one credit card terminal that they will be allowed to have an account on so they can accept credit card payments for their services.
The salon will provide back bar ND towel service for each renter. The esthetics's will have a private room for his/ her services. We have found a building that would fit the need and it is only $650. 00 per month.
We have secured a $20,000 loan with a 10 year repayment structure at 7% interest rate to use as start up capital to transform this 700 square foot area into a beautiful and stylish salon ; spa. Here is a 10 step process of what we will need to do and have already done. 1. Find a location (hopefully with plenty of visibility and potential walk in clients) 2.Contact the building owner (future landlord) 3. Meet with Landlord to negotiate a lease ; terms 4.
Hire a designer to layout the salon 5. Take design ; layout with lease agreement to the City Planning Commission to get a building permit 6. Use temporary building permit to start work on building and Implement all requirements from the City as well as any DAD Improvements 7. Hire contractors to install plumbing, flooring, and DAD improvements 8. Hire a Asphalt company to improve parking lot and make handicap accessible 9.Gather as any friends and relatives to help with all interior improvements, such as painting, cabinets, station set up, etc.
.. 10. When completely finished with all improvements, call City inspection department to set up a final inspection for certificate to occupy and begin the adventure! Here is a list of costs associated with implementing the tenant improvements to the building and how quickly $20,000 was spent to open the salon.
Layout ; Design $1 oho Permit ; City Fees $200 Plumbing $3500 Salon Equipment $5000 Fixtures DAD Requirements $1000 Flooring TechnologySignage $1 500 $1000 Website ; Advertising $1000 Miss Materials $1800 As you can see the money was well spent, but was used up rather easily. However, we saved another $20,000 Just by doing most of the labor work ourselves and using our friends and family. Our finished Salon is beautiful and tastefully decorated. While in the process of building we were able to get artwork from a local artist to hang on our walls in exchange for selling his work out of the salon. This enhances the beauty of the salon and keeps it fresh with the changing artwork.The last item to dress is how we have managed to keep this salon profit free and have used the rental income to cover all costs associated with this project.
As we indicated in our proposed business plan... We have 4 hairstylists and 1 esthetics's all paying $550. 00 per month for their stations.
This has generated an operating fund of $2,750 per month. Here is a list of how that money is being dispersed each month for the salon. $650 Lease $150 Insurance $1 50 utilities $300 products $500 Towel service $100 Alarm $50 Credit Card Machine$100 $41 5 Loan payment Advertising $100Salon Improvement $235 All this adds up to the $2750 per month of rental income. The last fund which is more or less a savings fund for the salon is also an emergency fund in case a renter decides to leave unexpectedly.
This will help to offset that loss of revenue until a new renter comes in. In closing we would like to say thank you to all the family and friends that have helped us with building this beautiful salon. We would also like to invite you to come and see this new salon whenever you would like and enjoy a glass of wine, some cheese, and soak up the ambiance.
