Mkboz

Hi Everyone

I really need some help. I am currently trying to calculate the setup and running costs for a hairdressing salon somewhere in the Brisbane area (Not CBD), but am finding sourcing the information very difficult here from the UK. I have been advised to use UK costing then add 30%, does this sound correct. We are looking to lease a retail unit around 70 – 100sqm to provide a full range of unisex hairdressing services including shaving, colouring, extensions, relaxing and perming. Can anyone please provide me with a rough cost or point me in the right direction of the following:
Insurances
Water rates
Electricity
Business rates
Gas
Credit Card reader
Salon software / Computer system lease
Accountant
Music license
Rent/Lease
Solicitors to arrange lease
Environmental waste removal
Business bank charges
Telephone / internet charges
PAT testing electrical equipment
Fire extinguishers and annual servicing

I hope I have not forgotten anything, your help will be most appreciated.

Alfresco

I'm not sure if anyone has the answers you are looking for right now, but hopefully someone with some knowledge will come along soon and be able to help.

spalen

why dont you look for one that is for sale - and ask for a copy of their accounts including monthly running cost.

thats what we did when we were setting up a company in UK

GarryP

No direct knowledge of how costs compare - but I do know the red tape costs are higher generally. Things seem to be more setup to help the small business person in the UK - although there are some support services here. Plenty of 'certification' in place of proper oversight and as a barrier to entry.

Hairdressers probably not the best business model - rental costs of premises is apparently high in Oz with plenty of competition from asian immigrants, it seems. Would need an edge to gain custom.

SKIPPI79

There are a million and one hair dressers for sale in OZ, just check out realbusinesses.com.au.
Ask yourself a few questions first

Do you offer something different than the opposition?
Do you have enough funds to survive a few months without income?( it'll take at least a few weeks/ if not months to get it up and running)
Why should one come to you and not the neighbours?
Are you goo at marketing?

Although I must say, I do take my hat off for people that go the hard way and try self employment
Goodluck and will be following this threed

Mkboz

Thank you Spalen, GarryP and SkIPPI79 for your responses. You have given me some food for thought and a new avenue to explore. Its been a nightmare so far to get any costings figures to use. Buying a hairdressing business might be the way forward for us.

Many thanks

SKIPPI79

where about are looking to settle?

Carbery

The biggest costs involved in the running of a business are rent & staff. Choosing where to operate from (shopping centre, strip) will determine how much rent you will pay, the better the position / access / customer flow (major tetenantn shopping centre) the more it will cost. Get a solicitor well versed in lease negoitation to get the best deal - dont try it on your own!!
With all these variants taken into account (this is very ballpark type) expect to pay $1000.00 per sq meter plus add ons for running the centre (maybe $500 per month). Insurance is expensive and has to be to the leasors requirements - budget $5000.00. Utilities are billed by the leasor. In Qld there are no business rates. EFTPOS machines (credit cards) - shop around, banks have increased charges massively recently and many businesses charge for card transactions. We have recently changed from St George to Tyro http://www.tyro.com/.

GarryP

This thread refers:

http://forums.whirlpool.net.au/archive/1824305

Mkboz

We like the Holland Park and Norman Park area to live in, but as for the salon not so sure. No doubt we will rent a house for a while until we are more settled.

Mkboz

At last some figures that I can use. Thanks
Can you give an indication of exactly what 'out goings' and 'add ons' are? I assume these are things such as maintenance and service charges.

Mkboz

What a horror story, thanks for the heads up.

Carbery

Exactly. These are charged as a proportion of your occupancy of your shopping centre - waste, common electricity, air con, upkeep of your centre, public liability insurance etc. Electricity is charged by the landlord and added to the rent.