Re: JVP for a new branch surgery

grumpyoldman — Sun, 06 Apr 2014 19:10:10 GMT

All things being equal ,minus the V4P advertising budget you need to consider :-

the market is pretty static and reaching saturation point in some places

So how are you going to steal someone else's business ?

Are you better than them ? Can you do surgeries that they can't ?.

Are you prepared to put yourself out and work long hours ?

Are you an outgoing gregarious charming and charismatic person who will magnetically attract clients?.

To make it go you need to look at the local demographics and your going to need 1250-1500 clients to get you over the 200k per year turnover which is when you actually start to make some money . Where are they coming from ?

Leasing a good sized unit will cost about 20k per year and it will cost 140k to fit it out to an aesthetically pleasing standard .

it also depends what your sitting partner wants off the top ? try and make sure he only gets a % of profit and not turnover post VAT .

Much better to be prepared to set up on your own ,but you need a high earning sympathetic wife/husband/partner these days who can carry the family until you hit the black , that's if you can find a bank to back you .

you can live on a profit on turnover of 20-25% ,making 45% to give V4P their 20% cut is extremely difficult ,hence all the stress ,failures ,financial ruin and suicides we are all hearing about. I would not touch that model with a very long barge pole.