108 Should I start a salon from scratch or buy an existing business?

A question that I am often asked is, "Should I start a salon from scratch or buy an existing business?" This was the topic of a recent clubhouse event that I hosted, and I've recorded it for you as it's always a relevant topic that arouses a lot of interest. I know that you're going to enjoy it.Like most things, there is not a one-size-fits-all answer to cover all cases, and there are multiple things to factor in and some 'for and againsts' to consider before making a decision that is right for you. Sharing the mic with me today is Tina Black and Cindi Quinn-Ventura, both salon owners who, like myself, have either bought existing salons or started a business from scratch. We openly share our experiences of what worked and what didn't.For those who want more information, you should check out episode 63 on the Grow My Salon Business podcast that I did in 2020, where I discussed the same topic.In this Episode:[0:02:14] An introduction to my two guests, and the topic we are going to be co covering today.[0:03:11] My experience of starting a salon business from scratch compared to my experience of buying a salon. [0:07:02] Why it’s so hard to answer the question of whether it’s better to build a salon from scratch or buy one. [0:08:21] Major learnings that Tina had when she entered the salon industry. [0:09:53] The business model that Tina has developed for her salons. [0:13:10] Cindi’s educational and professional background, and how she made her way into the salon industry. [0:16:16] Important lessons that Cindi learned when she transitioned from the corporate world to being the owner of a salon. [0:19:52] Factors that indicate what a business is worth. [0:25:00] The importance of culture in determining the success of a salon. [0:27:53] A red flag to look out for when buying a salon business.[0:30:15] Challenges Cindi faced when bought her salon business. [0:34:11] The gift that the COVID-19 pandemic gave to Cindi. [0:36:15] Tina’s experience of buying a salon where the previous owner stayed on as part of the business. [0:36:58] Advantages and disadvantages of having the previous owner stay on after the business has been sold. [0:39:00] Why changing a culture as a new salon owner is so difficult. [0:43:49] A for and against list comparing starting a business from scratch and buying an existing business: Starting a business from scratchFor:Create the culture you want from day oneEmploy people to fit the culture you wantCreate the salon design you want from scratchNo negative historyAgainst:Cost of fit-outNo existing clientsNo existing staffNo trading historyLacking salon systems and expertiseBuying an existing businessFor:Existing infrastructure Existing client baseExisting staffExisting relationships with vendors and suppliersExisting systemsInstant cash flow (in theory)Against:Possibly pay too much for the businessInherit a culture you may not likeInherit business relationships you may not likeExisting staff often leaveStaff and clients often resistant to change [0:48:17] What Cindi would do differently if she could go back in time. [0:49:10] The culture that Cindi is now trying to build. [0:51:20] A panel member shares his successful experience with taking over existing salon businesses.[0:54:23] Final words of advice from Tina for anyone interested in buying an existing salon. Links and Resources:Grow My Salon BusinessClub House @antonywhitaker Instagram Grow My Salon BusinessCindi Quinn-VenturaLinkedInInstagramTina BlackInstagram