10-02-2005, 11:18 AM | #32 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Do a search on how well "partners" normally work out! She will feel she is coming in with the experience and name, she is building the clients through her hair side, etc -- eventually she'll be resentful of all "she" is doing to "carry" the business. Plus - would you now want more than "rent" from her, but instead, a total split of all profits and losses between the two of you?? You can't just split the upfront costs and rent but still charge her weekly! Does SHE take all the $$ from hair product sales - or do you get a "cut" on those? What about nail products? What if one of "their" clients buys a candle from "your" side -- do they get part of that or is that all you? What if they are working the salon when it happens and you are off playing tennis because this is just a "hobby" for you - do they get commission? Whether someone else helps you build it upfront, or you buid it all yourself, it doesn't change the picture of how well I think it will do when open. The question you must answer for yourself is what the totally monthly/yearly costs will be. Then, you have to estimate revenue and see if there is any 'profit'. Then apply the profit, if any, to the 'debt' you incur to build it. See how long your 'payback' period is before it REALLY might actually start making a "profit". Then ask yourself if a 70 hr/week, 363 day/year "hobby" is really what you want. Only you know that answer. |
10-02-2005, 11:21 AM | #33 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Agree with HBT6872 -- those are "low end" commercial quality. Nothing I would associate with a very high end, ritzy, pampering spa. They would be more "typical" -- back-of-a-hair-salon-throw-a-couple-of-beds-in-and-make-a-few-bucks beds. Not competitive. |
10-02-2005, 11:27 AM | #34 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | By the way - the rent you are intending on paying - the $950/mo. Is that AFTER counting on getting the $$ from the hair and nail techs each week? So is it really more like $2100/mo that you are "on the hook" for if they bail? |
10-02-2005, 11:54 AM | #35 (permalink) |
Join Date: Sep 25 2005
Posts: 56
Rep Power: 0 | It's hard to explain the area I live in. We are out in the boonies. I am from the city and know what you are talking about, however, eventhough this ia a country club, they still have that small town mentality. I never described this area as "High end". They are not like the city as far as being educated on bed levels. I felt I chose a solid bed that can give a good tan without breaking the bank. Investing in high end beds seemed risky. As far as the salon, you can provide a great service w/o it being ritzi or pricey. That is not what I wanted to project. Maybe a partnership isn't the right term. What I invision is 2 seperate entities under 1 rental space. We would split the rent according to sqr footage, electricity on a % and she sells her own product. She would pay for her salon side finishout. This would lower my lease amount by $12,000 and my finish out by about 15,000. I understand the flakiness of hairstylists, however, this one is the exception. Niether one of us are petty. I will play with numbers and see if this would work. Still want to know what you think, even if it isn't what I want to here. You're tough!! |
10-02-2005, 01:17 PM | #40 (permalink) |
I love Derf!! Join Date: Aug 21 2004 Location: The Islands Age: 45
Posts: 583
Rep Power: 21 | Reconsider the partnership! However you want to call it, what you are proposing is a partnership. Unless you have every single instance spelled out in some contract and even then partnerships rarely work out. I did a partnership, I brought the money, the credit, the ability to work flexible hours, and the ability to do maintenance. It lasted less than 1 mth before we had problems. One will almost always do more than the other. It is a fact of life. My parnter was a family member that I swore would never wrong me!! She did. It seems as though you are passionate about doing this and will fight anyone who tells you not to. That is a great start to success. If you can make it work on your own and not with any form of partnership I would go that route. Once you get going and if you still want a partner bring them in later. |
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