PBA Salon/Spa Section member Jere Pastore, owner of Images at San Marcos in Chandler, Arizona, recently moved her salon to a new location. She shares the good (fantastic grand opening), the bad (delays, delays, delays!) and the beautiful (lovely new space) surrounding this stressful business change.
Why Move? For Jere, making the big move wasn't an option. Her landlord decided to use the space for other purposes and gave notice that they would not renew her lease. But this forced change allowed her to nearly triple her space-from 870 to 2,200 square feet. Plus, a brand-new facility can attract a higher-end clientele. "[The landlord] ended up doing me a favor, even though I wasn't prepared for it," says Jere. "We can accommodate more guests and more services in the new salon."
Financing. Jere reports that salon build-outs can run between $85 and $130 per square foot-or even higher. She financed the new salon with a patchwork of sources. First, the city of Chandler, where Jere has been an active business leader, provided a significant grant to help her stay in the city's historic center. Her equipment leasing company provided a build-out allowance. She got an influx of capital from an inheritance. And she opened up a couple lines of credit. Jere recommends that owners maintain (or, if need be, create) a business plan and detailed financial portfolio. She describes her financial portfolio as a three-ring binder three inches thick-containing all of the details a bank would need to know about her business and personal finances. "The biggest mistake small businesses make is being under capitalized," says Jere. "You should have these two items on hand because you never know when you may need to borrow money."
Timeline. "I was supposed to be open in October 2006, and my grand opening finally took place in May 2007," says Jere. "That's pretty typical, but I didn't know it." If you're planning a big move, it's smart to get started a couple of years before your lease runs out. The goal, of course, is to have the new salon ready before the current lease expires. If not, you'll need to negotiate a month-to-month plan with your current landlord, and they may take advantage of your situation. Discuss a timeline with your contractor-and then tack on a good cushion in your head. Try to be fully settled before your salon's traditional busy season so that you'll have solid cash flow coming in after the move. "Plan for the worst," recommends Jere. "Because unfortunately there are certain things out of your control."
Important Partners. Jere was pleased with her salon equipment company's support during the planning process. But while many such companies can help you design the space, you'll probably need an architect to sign off on the plans. In that case, she recommends working with an architect who has salon-specific experience. "My architect made a lot of mistakes in the placement of equipment and plumbing that cost me time and money in redesigns." Another important partner is the contractor. Her top two contractor tips: 1. Get a firm bid. 2. Try to negotiate a timeline with consequences if deadlines are missed. Finally, be sure to have an attorney look over the new lease. That legal advice is worth every penny.
Clients. Jere recommends drawing clients into the excitement of the move. "I used a blank wall in my old salon to display drawings of the new salon showing the colors, equipment and anything else I could think of," Jere explains. She also took drawings to marketing and networking events to get the community excited about the new location.
Staff. "You need to get your staff involved so they feel like it's their salon too," says Jere. "I let them pick out so much-they're younger then me and have better taste anyways!" The only real challenge with the staff was keeping them upbeat and motivated despite the delays. With the new location so close to the first, Jere's staff could walk over everyday and see all the changes, which kept them engaged. "I haven't lost one staff member in the move," she reports. In fact, she recently hired four new employees.
Grand Opening. Jere capped off a frustrating process with one phenomenal party. "I started planning my grand opening a year before I opened," says Jere. "That was my biggest way of getting the word out." In fact, she turned the opening into a community event. She rented a 2,150 square foot tent and invited local businesses to display their information to show people what was going on in the revitalized downtown. Local businesses responded by donating wine (from a local wine bar), beer (from a new brewery) and food (from the adjacent resort) for the party. A postcard mailing to the salon's database helped draw 300+ people.
It was sometimes a rough road getting there, but the end result is a wonderful new salon space. You can check out the finished product at www.imagesatsanmarcos.com (click on Gallery).