Considering buying a hair salon

[superblue72]

Hi .

 

We are moning to northern suberbes in January , my wife is a hairdresser and we are considering buying a Hair salon in this area .

 

Can anyone offer advice as to an opinion on whether this would work ?

 

 

Andy

[StraighttothePoint]

Now given my head does not have much hair on it then I may not be the right gender and/or participant in this debate. However I live in Joondalup and boy if I see yet another salon opening here in this area I will just scratch my head and wonder why? I am assuming because at one time hair dressers were on the skills short list that there must have been an influx of people wanting to do the same thing.

Jonndalup seems to have dozens of salons and every time I pass one of them they are near empty or empty. Also not sure how many are bought as there is a lot of leasing of shops here rather than outright purchase.

 

First suggestion would be to go onto white pages . com and do a search for salons in each of the northern suburb areas. That should give you an idea of the volume there are. Then go to businesses for sale in Perth and look though that and you will gauge from that how many are for sale and if a big number then you would need to ask yourself why. Finally setting up and running a small business in Perth is a nightmare. I know because I do it. The amount of council rules and regulations, the ever increasing rents and rates, the cost of utilities and so on is so hard to juggle.

 

Ultimately the costs need to be passed on and that hurts the customers. If you are in a niche market then fine but when you are up against similar businesses then the customers just vote for their feet and many look for the cheapest deal. I know quality counts but in Perth my experience is that if it is cheap it sells. All for you to find out no doubt when you get here.

 

The hairdresser my wife went to in Joondalup was run by a Pom couple and they were forced out by customer numbers, high lease costs and ever increasing council rates. They were one of what looks like 10/15 hairdressers in a very small area. They sold up and moved house, one with an extension built on the back, and now run their business from home. Apparently they have never looked back. They do not need to work full time and are just glad that they got out when they did. My wife still goes to them as do many of their previous shop customers. Slight drop in charges to the customer but a huge reduction in overheads.

 

Sure when you undertake the research properly you will then have the facts to decide.

[superblue72]

STTP

 

Mate , that was the kind of answer , although not what i wanted to hear , that i wanted . No BS , just facts . I have spoken to my wife and she will probably do just that , operate from home or on a mobile basis . Same thing all over the world , rates , rent , costs , wages , seems like the small business owners are just getting squeezed out of the game ! Not that many on business for sale , mind you , but the ones that are on there are suspiciously cheap , so theres a hint . PS i just sold my scaffolding company in London because of the same reason , rates , overheads etc !

 

All the best , Andy

 

Thanks for the advice fella , it is appreciated !! :-)

[StraighttothePoint]

STTP

 

Mate , that was the kind of answer , although not what i wanted to hear , that i wanted . No BS , just facts . I have spoken to my wife and she will probably do just that , operate from home or on a mobile basis . Same thing all over the world , rates , rent , costs , wages , seems like the small business owners are just getting squeezed out of the game ! Not that many on business for sale , mind you , but the ones that are on there are suspiciously cheap , so theres a hint . PS i just sold my scaffolding company in London because of the same reason , rates , overheads etc !

 

All the best , Andy

 

Thanks for the advice fella , it is appreciated !! :-)

 

No problem.