🛠️ What You Need to Know About Opening a Bigger Salon, Before YOU Sign A Lease: Construction Edition

💇♀️✂️ Thinking About Expanding into a Bigger Salon? Here’s What You Need to Consider Before Signing That Lease! ✂️💇♂️

As a beauty professional or salon owner, the thought of expanding into a bigger space can be both exhilarating and daunting. While it signifies growth and new opportunities, there are several crucial factors to consider to ensure a smooth transition and successful new venture:

Most landlord do not understand what is require for a Salon Business in their spaces whether it be Building Code or State Boards, their objective is to rent their space.

I see soo many Beauty Professional get in over their head because of thing they didn't know. Such as Permits, Code, Construction, Lease, Compliance and Inspections. This is required in any renovation>

Below is a list of what needs to be considered before you sign a lease.

 Some things to consider.

1. When you find a space FIRST check with the local Municipality and see if your business can go into that space (Business / Zoning Permit)

2. Depending on what kind of Salon you are setting up check what codes will need to be update to be in compliance. Ex Nail Salon, PA Building code requires and exhaust fan 12inch from where you are applying any kind of product. If the building does not have it, Its your respondsibility to install a system in order to get open.

3. Hire a contractor to look over the space to see what needs to be done and to be incompliance.

4. If work need to be done it will require an architect and a mechanical engineer  to do a set of Blueprints before you can start renovating.

5. Once the drawing are in hand you will need to apply and submit the prints for a construction  permit with the town office.  This process can take weeks depending on the size of the town you are setting up your business.

6. Once you receive the building permit then and only then can you start construction, (be sure to negotiate in your lease when you will actual have to start paying rent) Delays can take weeks if not months .

7. Your will need to have a permit for Signage if the landlord require your business to install a sign on the building. Signage depending on what the landlord will require can be $2500 and upwards.

8. Permit Cost is a percentage of the actual work cost that needs to be done. EX if the cost of works is $10K you can expect at least a 10% permit cost associated to the permit amount.

Construction Cost

1. Depending on the condition of the space and the type of Salon you are creating will determine the price.

2. Hiring a Contractor is going to be your biggest expenses on the average cost you are looking at $5K for minimal changes,  all the way up to $50K+,  for cost including  Permits, Materials, Labor, BluePrints, MEC Drawing , Dumpsters, Painting, Cleaning.

3. If you need plumbing or electrical moved or added, you will need Blueprints and permits. DO NOT try and forego this without proper paperwork. If you get shut down for not having permits it will delay your opening several weeks if not months and you will be responsible for paying rent during this time period.

Negotiating a Lease

 DO NOT NEGOTIATE A LEASE UNTIL YOU FULLY UNDERSTAND WHAT WILL BE REQUIRE to UPDATE THE BUILDING,

Construction cost are no joke!

1. Commercial Lease are minimum 3 years to 5 years and the cost increases each year depending on the lease.

2. Be sure to know what the price per square foot of the space will be including CAM charges. EXample :Most landlord will charge $20 per sqft the add CAM charges $5 and upwards for Common Area Maintenance which includes, snow  plowing, lighting out side, cleaning and maintaining any kind of common area you will be sharing with other tenants. Bringing you actual rate to $25 per sq foot.

Definition of CAM Charges - Common Area Maintenance is the landlord cost to maintaining and operating the facility that is passed down to the tenants.

3. Find out what is included such as utilities, garbage if any.

4. How old is the HVAC, if the HVAC breaks the lease will require you to replace it. ($5K for smaller units upwards to $25K)

5. Who is responsible for the maintenance of the space, such as HVAC, Electrical, Windows.

6. What kind of insurance will you have to have for your business

7. Personal Guarantee who is responsible and for how long. If you fail to keep the terms of the lease and decide to close earlier, You will be responsible for the entire lease amount regardless if you continue to do business. They can and will take you to court for violating the lease and put leans against you which will impact your ability to buy or make purchases in the future.

8. When your lease has ended landlord require you to bring the space back to its original condition so have a plan of how you will deconstruct the space.

Furniture, Fixture & Equipment

1. Know the Cost of the Furniture and Equipment needed to be in compliance with state boards. Shampoo Bowls, Styling Stations, Stylist Chairs,  Nail Desks etc. You will have to indicate those items on the blueprints and for state boards.

2. Products Cost always get intro deals to defry the startup order.

3. Decoration

Utilities Setup

1.   When leasing a commercial space you will be require to setup your own utilities with each company. These are business accounts and for new businesses will require a start up fee in order to start service to your new business.  Water, Gas, Electric and WiFi.

2. Dumpster rental for trash because you are a business you will e required to have a dumpster.

Ongoing Maintenance and Supplies

1. Keep a 10 % of your Profit for repair and maintenance needed to maintain the space.

2. Supplies such as Toilet paper, paper Towels, cleaning supplies, snacks

3. Check what the Landlord requires as maintenance to the space.

If you are considering opening up a bigger salon and don't know where or how to start, feel free to reach out to me and I can help evaluate the cost and pitfalls that you may experience before signing that lease.

Karen@alluresalonsuiteconsulting.com or 570-294-8979