To but my business premises or rent another space?

[Whatsuplass]

DILEMMA!

I have had a salon for 6 years in the UK north of England.

I was a home salon but wanted to expand and got a shop space as I thought that it would be easy to get clients and grow my business.
It has been great for my business and I’m very busy.
My shop is quite large and I rent chairs to 4 beauticians, 2 hairdressers and 2 nail techs.
I just renewed my lease and the owner has told me that they plan to sell in 3 years (which is the lease they gave me, I wanted longer) I’ve been given the opportunity to buy but I need to save 25% deposit which I think will be around 50k. I have savings and am confident I can save the rest and will have that amount but and here is the but.. a smaller shop space a street away has come up. It’s still a busy location, in fact I can see it from my salon window, and the rent is £300 less than I’m paying now.

I’d only be able to take maybe 2 beauticians, 1 hairdresser and squeeze in 1 nail desk.
So that means 2 beauticians, 1 hairdresser and a nail tech couldn’t come with me and I feel AWFUL about this.

I feel quite stressed at the thought of saving all the money and also letting people go. Everyone has children and have a great life balance so I feel really terrible about even thinking this.
One thing about my choosing of who to take with me comes down to I sometimes get annoyed at work about the hairdressers/beauticians not cleaning up after themselves and I end up doing it. I’m not a leader and avoid confrontation so I don’t say anything to them.

I’m really stuck at what to do.

1. Buy my current premises, push through and deal with the stress of it all and love the great salon and nice space that I’ve created and put so much work into. But it would be secure as it’s mine

OR

1. Rent the smaller shop, keep a couple of my renters and have a less stressful life, and no pressure to get a mortgage and save the big deposit. I may be able to buy it in time eventually if I wanted to.

If you have just renewed your existing lease what is the break clause to get out of it ? If you go for the smaller shop now won’t you still be on the hook for paying for your existing premises as well ? If this is the case you won’t be saving money it will costing you more .

Because my landlord wants to sell I can leave at anytime. I’ve to give 2 months notice but that’s fine as I can get thr other place ready.

The salon rent is £300 less but how much rent from your techs/hairdressers would you lose by not taking them all?

Also how much would you lose having to refit the new place?

I would personally buy the current place. Is it being sold at market rate? What about rent increases in the area have they risen/fallen? Obvs you seem to have good footfall for clients in your area and to your salon.

My friend currently rents a salon and rents out rooms in it, she couldn’t afford to buy it but is looking to do so if she can in future. Cost wise bills have risen but unsure how easy she would find it to get mortgage.

You need to run ALL of the numbers and projections or get your accountant to do so. First and foremost this has to make financial sense before any of the emotional aspects come into it.

Secondly you need to get the people who don’t tidy up to start pulling their weight! Presumably you have contacts with them? You don’t need to be an arse about it but they are currently taking the piss.

Agree with above posters, you need to work through all the options. What makes more sense money wise. If you rent the smaller place, what’s to stop them selling, or ending your lease, and then you’re stuck.
people will always need hairdressers and beauty treatments, so it’s not a risk in my opinion that you can’t make the business work. I’d rather own it then have to pay someone rent.

and you don’t need to avoid conflict. Just remind people to tidy up after themselves!!