Should I Open A Beauty Salon For My Tg?

[udon]

Any ideas on where you find franchises for sale - you never seem to find any for sale. I've tried their thai website.

Try Sunbelt.

[Harmonica]

Khun Jean, very creative, good stuff! The sister-in-law quitting her Beauty Salon biz to take over your outfit is esp. telling. Thanks.

Dakhar, placing any future property holdings in her name entirely is not something I would easily do; putting a Will together makes more sense for now. Four years is still kinda short for the level of trust that you're talking about; and the horror stories in LOS don't help either. Thanks.

[charles]

As a choice of occupation, however, she'll be getting into one of the most over-saturated and cutthroat choices in the Thai labor market.  I personally know 4 different individuals studying to be hairdressers currently, all with farang partners, all with the plan to make some sort of "shop."  I've seen neighborhood streets in the Moban with 3 beauty salons per block.  There are just too many people with too few skills.  If this is just something to keep her occupied and out of your hair, fair enough- if you really want her to have some sort of security, I'd find some other occupation.  Of course, as above, if she already has a huge clientele, that could make the difference.

"Steven"

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I would strongly disagree with this. As an occupation, I think training to work as a beauty salon worker is not a bad option at all for girls with relatively low education e.g. M3 or less. Let's face it, they are a very long way off getting a degree, and you need to have completed M3 just to get a crappy 20b an hour job in the "formal" labor market.

Being a beauty salon worker, a girl will not "ot tai". Beauty salons are ALWAYS looking for workers. They are always having problems with staff working for a month or so, and then leaving to go elsewhere, go home upcountry etc. If a girl can find a decent employer and demonstrates she is reliable, she'll do OK. Salaries are not great but will get better with time and improved skills, plus a few tips too. Certainly won't be getting rich, but in terms of working environment and potential progression it is much better than many of the alternatives (e.g. selling food on the street, low-level factories, prostitution).

As for starting a business, I don't think anyone should consider this until they've worked in the industry for quite a while. Finishing beauty school and then opening a business straight away is a recipe for failure. In terms of set-up cost, as far as I know they're not that much - the basic set up would be in the region of 100,000 baht, obviously more for a grander place. Rents in shophouses are not necessarily that expensive. Where I live around Ekamai, where there are many salons (and many customers), I think they're often in the 5-10K per month range. Even on the main Petchaburi Road (near the karaoke/massage parlours) they're less than 15K.

The main earner for your typical beauty salon is not haircuts. It is washing and drying, often just drying. A steady stream of these from e.g. students/office workers, nighttime workers and the salon will probably do OK. As said, obviously you need to build up your network/clientele. In this regard, the best way is probably to take over an existing business. Good ones might include the "franchise" in an apartment block. If you do a decent job, some of these can be like licenses to print money. Never a huge amount of money mind, but not bad at all for a girl coming from a non-privileged background.

Edited December 21, 2004 by charles

[ZOVOX]

Any ideas on where you find franchises for sale - you never seem to find any for sale. I've tried their thai website.

Try Sunbelt.

<{POST_SNAPBACK}>

Tried already ! I guess 7/11s are such goldmines, nobody wants to sell.

[Sunbelt Asia]

Tried already ! I guess 7/11s are such goldmines, nobody wants to sell.

Not really the reason they are not for sale. Most businesses no mater if the are goldmines still have human reasons for moving on... divorce, health, relocation, retirement. The only difference is this is a business that can be handed on to the next Thai in the family and they feel they are comfortable taking it on. Everybody thinks they can run it even as a absentee owner.

My wife has the inside to CP so if a 7-11 ever comes up for sale, she will be one of the first people to know.

www.sunbeltasia.com

[Dakhar]

Charles,

Well put.

The only issue I see is the long hours one has to put in... But to earn money, this is the trade factor.

In my situation, I purchased realestsate. This is because I do not want to be a teacher and I'd like to live a semi-retired life style.

[Harmonica]

>>>>>> If you do a decent job, some of these can be like licenses to print money. Never a huge amount of money mind, but not bad at all for a girl coming from a non-privileged background.

Thanks Charles, good stuff. Actually a very encouraging analysis. Much obliged.

[Kathe]

I'm not sure what the cost is, but buying a 7-11 franchise is a good idea. They're just Baht magnets. A few years ago I talked a Greek chap who owned one in Patunam and swore up and down it was the best thing he'd ever done.

Then the girl would have a highly respectable job .

<{POST_SNAPBACK}>

I like the idea about 7/11 franchise shop, wish i have one..hurrrrr....no sponsor ;-(.

YOur gf has to learn to get the Beauty Diplome first , then she needs the experiences.

Having a shop like 7/11 is hard working but only the name of it, it gurantees you the clients. she needs to learn how to opperate the franchise shops and the systems of it. The rest is working.

[Jowels]

A beauty saloon MAY turn a profit, but not a substantial one. Perhaps, you should look at other alternatives……

Four years ago, while I was living in the south, my ex opened a gift shop stocking hair clips, necklaces, bracelets, earrings…etc. Her stock was purchased in Bangkok and sold for approximately double the original price. The initial capital was only 100,000 baht, but within three months she was making 20,000 baht PROFIT a month. This was invested in other similar ventures in Dept. Stores and markets around town. She currently has six shops, employs 8 staff and makes an average of 70-90,000 baht a month. Not bad for a girl from a poor family.

If you can find a ‘niche’ there are plenty of money making opportunities in Thailand. Good luck!

[Harmonica]

Jowels,

Good stuff. Agreed, I am keeping my options open. Anything above even 25,000 Baht per month would put my TG in hog heaven. Thanks.

[kreon]

don't laugh at this but my ex-gf was a salon owner with another partner and made about 15K each in the pratunam area.

the minute the business made money another 2-3 salons sprung up in the same soi

so i told her to sell her business to the first fool who walks in the door, so she did at a nice profit, the new owner lasted only 6 months

i now am her business partner in a buffalo farm with about 60 buffalo's sold each year

she works about 2-3 days a week, her salaried workers take care of the rest, she got a great income and i get after expenses my share in cash

obviuosly, you have to teach her how to run a business and make sure that she keeps the wolves of her back

[ZOVOX]

don't laugh at this but my ex-gf was a salon owner with another partner and made about 15K each in the pratunam area.

the minute the business made money another 2-3 salons sprung up in the same soi

so i told her to sell her business to the first fool who walks in the door, so she did at a nice profit, the new owner lasted only 6 months

i now am her business partner in a buffalo farm with about 60 buffalo's sold each year

she works about 2-3 days a week, her salaried workers take care of the rest, she got a great income and i get after expenses my share in cash

obviuosly, you have to teach her how to run a business and make sure that she keeps the wolves of her back

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'BUFFALO FARM' - now that's a great idea !

[Ijustwannateach]

I agree somewhat with Charles above now that we know more about your situation, Harmonica... the job has to suit the worker. I'm just saying (as several others have) that the market's REALLY saturated and it's no ticket to quick bucks... and she'll have to watch out for those competitors as well. So many times I've seen neighborhood streets and malls with 5-6 beauty salons or barbers, all of them nearly idle...

The high-price salons in Central (yes, those are HIGH price!) are the top-of-the-line, and probably involve connections (with the mall owners, the hi-society types, and other rich characters' wives) as much as they do skill in hair cutting. Certainly this is not the market to aim for as a beginner... and there's even a chance your lady could run into hi-so prejudice against her provincial background in an attempt to set up a shop at that level [have to know the right gossip, come across as a sophisticated urbanite, etc., etc.].

The mid-range shops I've seen (in Thai neighborhoods, not farang-frequented areas where they are much more pricey) run about 100 for a haircut and shampoo in a beauty salon, no kidding.

All of PB's questions are valid ones!

"Steven"

[PeaceBlondie]

Thanks, IJWT, for saying my questions were all valid, but perhaps they were beside the point. Perhaps the original poster doesn't want a business analysis; I think he just wanted to keep his girlfriend busy, give her something she wanted to do, build up her self-esteem, etc. In other words, he's not planning to conduct a business, just a personal activity for his little 'family.' No profit motive intended. If he loses an initial investment of 150,000 baht plus he suffers an operating loss of 8,000 per month (and she doesn't get a salary), mai bpen rai. She gets experience out of it, and the landlord collects rent for the term of the lease.

I saw that a lot in Nicaragua: people going into self-employment out of desparation (couldn't find a real job) or boredom. Nobody made a profit, of course. I'm not trying to be smug - I don't know how to conduct a profitable business, just unprofitable ones. Nevertheless, it still amazes me how guys will go into a so-called 'business' with no planning, and then be amazed that they lost a million baht before they pulled the plug. In the IRS, it raises the question of whether it's actually 'an activity engaged in for profit."

[baht&sold]

My TG (of 4+ years) has gotten a couple Diplomas during our time together and is now very interested in studying to acquire a Beauty School certificate in the hopes that she can get a job in a Salon and/or open her own Salon. 

I would like to hear from anybody who has ventured into this type of activity; the angles, pitfalls etc.  My observation about biz in general here is that failures occur quite rapidly, some even within as little as 6 months after starting. 

Your thoughts, suggestions, caveats etc. are all welcome.  Many thanks.

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Someone in Hua Hin just listed such a biz 4 sale on bahtsold dot com. Opposite Sofitel it says, which sounds like a decent location...but then, one would have to ask alot of questions on the trade, lease details, capital already invested/needed, reasons for selling, taxes, payroll, overhead, etc, etc, etc!

Also, you might want to ask others about company formation...You may not care, as it's just a small biz but this can also help you in future real estate purchase etc all under your company structure (consult the experts on this).

If you'd like to ask the gent his experience, PM and I'll pass along his email (or email him through the site at bahtsold DOT com) Good luck.

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Beauty Salon (Hua Hin & Region)

Beauty salon for sale opposite Sofitel Hotel, Hua Hin. All furniture and stock, good location next to 40 room hotel. 120,000 baht. Rent, 7500 per month

Contact: Glenn

Edited December 31, 2004 by bahtandsold

[johnnyk]

Don't know about LoS, but I know a couple of people in North america who had franchises and the parent company made the money.

So many rules/regs, everything geared to the parent that franchisees are forced to work way more hours than any labour code would permit for an employee.

One guy said it was a form of indentured labour.

Edited January 1, 2005 by johnnyk

[Harmonica]

Thanks friends. Its clear that there are many angles to consider. Even though we are not talking about a great deal of money, I would like the venture to be successful and not fall apart in a few years. Hey, 25,000 Baht might not be alot of money to us, but to my TG it is a heavenly amount. A monthly income such as this can raise her morale and that of her family too.

With your points of view, I'm now ready to explore some more. Much appreciated. Any further ideas or suggestions are always welcome.