For Hairdressers.....
Contents
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Financing
your idea
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Financing the
development of your idea can be the hardest challenge that
most people starting up in business will face. The most common
route to go down is to be in contact with a financial advisor
and establish a relationship with your bank so that they can
advise you well on taking out a loan or an overdraft. There
is also the opportunity to use government grants as they actively
seek to encourage entrepreneurs and make support widely available.
It is worth bearing in mind that you will probably need different
amounts of money at different stages in the development of
your business so be careful not to use it all in setting up,
as you may find you need to embark on unexpected market research
or competitor analysis for example.
As you develop your idea, you may speak to people outside
your business interest, therefore openly exposing your idea
to others. Once you do this, there is no reason why somebody
may not pinch your idea. It is essential therefore that you
protect your intellectual property. This can be done in several
ways;
• By using a trademark
• Having a copyright
• Patenting your idea
• Using design rights that will protect the appearance
of your product
If you have developed a partnership then the idea is likely
to have been that of just one person. In this circumstance
you should write a contract that determines what, if any,
will be the difference of profit to each party.
Essentially, know that you can afford it. Before you start
your own business, it is important to assess the start-up
costs required and decide if you can physically afford it.
The amount of money that you will need to start up a salon
varies immensely depending on the type of service you are
going to offer, the clientele you wish to target, the quality
of your salon, the fixtures and fittings you would like to
have, the equipment you will need, the amount of bookings
you aim to take, the leasehold agreement you have, the rent
you will pay and the opening inventory you will have, to name
just a few factors to be considered.
| Some
of the things that should be considered first |
£ |
| Purchase
price (or Tenancy, trade fixtures to fittings) |
|
| Security
deposit |
|
| Rent
one month - three months in advance |
|
| Stock
and Decoration and Refit |
|
| Professional
fees and training costs |
|
| Removal
costs and sundries |
|
| New
equipment |
|
| Working
capital |
|
| TOTAL
|
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If you decide that you can meet the necessary start-up costs
then it is essential to start to plan effectively. It must be
understood that there is more to running a salon than cutting
hair, and so it is imperative that you as the owner are educated
enough to be able to do things like balance the books, manage
supplies, deal with reps, have excellent interpersonal skills,
and that is just the start. Simple steps can be taken to ensure
that you are a top business owner, as well as a top stylist.
For example, go on courses, read books and the most valuable
information you will get of all is from talking to people and
listening to their experiences. All your employees, and of course
yourself, will need to be qualified in hairdressing to NVQ Level
2 at least, which qualifies as a junior stylist.
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