I’m joined by my good friend Linda Martin to discuss her second commercial property purchase, a hair salon. Linda shares how she came across the deal and her initial plan to only purchase the building, not the business. However, after realising the potential and the loyal clientele of the salon, she decided to buy the business as well. We delve into the operational aspects of running a hair salon, including renting out chairs to self-employed stylists and providing the necessary supplies. Linda also shares her plans for optimising the space and increasing income.
KEY TAKEAWAYS
- The location of a commercial property is crucial for its success. In this case, the hair salon’s prime location near a busy junction and close to a high school ensured a steady flow of passing trade.
- Buying an existing business can provide immediate rental income. By purchasing the hair salon, the host was able to generate rental income from day one, without having to wait for a refurbishment or finding new tenants.
- Building relationships with existing staff can help ensure a smooth transition. The host had open discussions with the salon’s employees and worked out a plan for them to become self-employed, alleviating the burden of managing staff and allowing them to run their own businesses within the salon.
- Financing options can be flexible for smaller commercial property purchases. The host refinanced their existing commercial property to fund the purchase of the hair salon, demonstrating that smaller-scale investments can be achieved through creative financing strategies.
BEST MOMENTS
“I think this is such a brilliant type of commercial proposition.”
“I do very little day to day… I pretty much know now that every week we have enough for a month.”
“I think the majority of people who work in therapy-related businesses just want a small space and want it to be functional.”
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