Considering my options

[The Grand Nudger]

Probably time for you to git gud in excel or open office.  Referencing "variable costs" won't impress a loan officer, and would be cold comfort if you found yourself in default.  You simply -have- to quantify them..or else you're effectively running in the dark with scissors.

Use your own experience to form an initial estimate. Say you perform 8 services. Say that this takes you roughly 8 hours. (I know, it varies..but not for purposes of estimation it doesn't). This is, "a day in the life of an employee". What did it cost you to perform those services? What was your net? What is left of your net after the cost to employ someone for the same eight hour period at whatever rate you're considering (don;t forget payroll taxes and whatnot)? There's a useful number. Lets call it a Daily Service Unit.

So, more fun with math.

Whats the monthly cost to pay down the loan in two years at a rate you might get? Whats the monthly cost of utilities, licensing, and maintenance?

Whats 10-15% of that? How much does it cost to stock enough product for the net on sales to hit that number? Add that to the above.

Now you have a rough monthly operational cost. How many Daily Service Units divide into that number?

Now you know your minimum labor requirements.

Say you need 90 DSU, you can only be open 30 days a month.

Now you know your required number of stations.

Now you know your required productive floorspace.

[Joods]

Probably time for you to git gud in excel or open office.  Referencing "variable costs" won't impress a loan officer, and would be cold comfort if you found yourself in default.  You simply -have- to quantify them..or else you're effectively running in the dark with scissors.

Use your own experience to form an initial estimate.  Say you perform 8 services.  Say that this takes you roughly 8 hours.  (I know, it varies..but not for purposes of estimation it doesn't).  This is, "a day in the life of an employee".  What did it cost you to perform those services?  What was your net?  What is left of your net after the cost to employ someone for the same eight hour period at whatever rate you're considering (don;t forget payroll taxes and whatnot)? There's a useful number.  Lets call it a Daily Service Unit.

So, more fun with math.

Whats the monthly cost to pay down the loan in two years at a rate you might get?  Whats the monthly cost of utilities, licensing, and maintenance?  

Whats 10-15% of that?  How much does it cost to stock enough product for the net on sales to hit that number?  Add that to the above.

Now you have a rough monthly operational cost.  How many Daily Service Units divide into that number?  

Now you know your minimum labor requirements.

Now you know your required number of stations.

Now you know your required productive floorspace.

In that case, I'll probably talk to my old teacher about it since she also owned a salon. Thanks Khem. I'm pretty decent with excel, but I don't have it on this computer. I do however, have open office and gooogle docs.

[The Grand Nudger]

Np np, lol, not trying to be all doom and gloom, btw, I wish you the best of luck.

[Pat Mustard]

I have two questions, how big is the market and how saturated is it?

In terms of possible profitability those are the two questions I'd be most looking at.

I was posting an answer when my power blinked off for a few seconds so I lost that wholepost.

I have considered market saturation in my area. There are more stylists than jobs so this will be another job possibility for people looking for work. There are also too many "chain" salons here. They also don't offer everything on their menus. I will be a full- service operation, offering facials, nail care, skin care, waxing, hair care, chemical services such as relaxers, perms and color.
If I rent the basement, it will be remodeled and finished to accommodate steam rooms (saunas) and I may include a few tanning beds in the future. There's a lot of room to play with down there.

There aren't but maybe a few day spas in the county. One is ten miles away, the other is further out. I'd like to think I'm bringing relaxation closer to home

From an Irish perspective, the only way to profit in beauty care is through owning your own business (no experience myself but I know quite a few hairdressers), but if possible I'd do as much research before jumping in. Ask around, canvass people try and gauge other businesses in the area. Every bit of information you have will make the chances of success that much greater. Forewarned is forearmed, after all.

Oh and one last piece of advice many Irish business-people have learnt to their cost, don't go in with low prices expecting to be able to raise them once business picks up. That kind of strategy kills businesses.

Anyways, break a leg!

[Joods]

Thank you both Khem and Tazzy. Wise words I will indeed be researching. This was good to post here first because I really am in the beginning stages of doing all of this. After all my research, I may find that I don't want 3600 square feet or I may find that it's too little. All of this is a work in progress and I will take any and all advice I can get.

[Pat Mustard]

Thank you both Khem and Tazzy. Wise words I will indeed be researching. This was good to post here first because I really am in the beginning stages of doing all of this. After all my research, I may find that I don't want 3600 square feet or I may find that it's too little. All of this is a work in progress and I will take any and all advice I can get.

Is there any enterprise agency in your area that helps with start-ups? If there is beat a path to their door post haste. Here in Ireland there's quite a few bodies which give help and advice to businesses getting started, and the help is often invaluable.

[Mystical]

Hey Nymph is there space to have a masseuse room? There's another service to provide! Most private salons I've been to make mad amounts on their "Packages". I got one as a gift, I gave 2 as a gift.. $150 was one of the cheaper packages.

Also if you could work a steam room into the floor plan, badass! Like I look at that basement and see a mini tropical paradise. It's easy to make, with wood, chicken wire, and cement-- faux rock walls and separators. Sitting lounges amidst waterfall sounds would be relaxing spot too for your color clients. Personally I get freaked outT when I'm sitting there with color in my hair and I sit there with a magazine staring at the colorist talking to her client while I wonder, do I trust this person or do I not? Whereas if I didn't know she was doing a cut during my color and had a little timer by my chair assuaging my fears, that would be best IMO. 

Sorry my thoughts and ideas are "out there" lol, I am just excited for you! Hey also there is or used to be a show about salons that got makeovers and revamped from failing to profiting? There were lots of local advertising ideas and do's/dont's on there that I just loved. I also watch bar rescue and I used to watch Chef Gordons "yell you out of the room" restaurant makeovers, but nevermind that. 

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Do you have a name in mind? I'd break out my photoshop for you ♡

[Joods]

Hey Nymph is there space to have a masseuse room? There's another service to provide! Most private salons I've been to make mad amounts on their "Packages". I got one as a gift, I gave 2 as a gift.. $150 was one of the cheaper packages.

Also if you could work a steam room into the floor plan, badass! Like I look at that basement and see a mini tropical paradise. It's easy to make, with wood, chicken wire, and cement-- faux rock walls and separators. Sitting lounges amidst waterfall sounds would be relaxing spot too for your color clients. Personally I get freaked outT when I'm sitting there with color in my hair and I sit there with a magazine staring at the colorist talking to her client while I wonder, do I trust this person or do I not? Whereas if I didn't know she was doing a cut during my color and had a little timer by my chair assuaging my fears, that would be best IMO. 

Sorry my thoughts and ideas are "out there" lol, I am just excited for you! Hey also there is or used to be a show about salons that got makeovers and revamped from failing to profiting? There were lots of local advertising ideas and do's/dont's on there that I just loved. I also watch bar rescue and I used to watch Chef Gordons "yell you out of the room" restaurant makeovers, but nevermind that. 

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Do you have a name in mind? I'd break out my photoshop for you ♡

Awe girlie... go back and read my post... a lot of what you mentioned is already in there

[The Valkyrie]

You are awesome, young lady.

Go for it.

I wish you all the best.

[Joods]

Thanks Beccs

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Thank you both Khem and Tazzy. Wise words I will indeed be researching. This was good to post here first because I really am in the beginning stages of doing all of this. After all my research, I may find that I don't want 3600 square feet or I may find that it's too little. All of this is a work in progress and I will take any and all advice I can get.

Is there any enterprise agency in your area that helps with start-ups? If there is beat a path to their door post haste. Here in Ireland there's quite a few bodies which give help and advice to businesses getting started, and the help is often invaluable.

There is an organization called SCORE here. It is run by volunteers who help with all aspects of business. Those volunteers are typically retired business owners or retired CEO's. I will give them a call. They can help me write up a business proposal.