Point 86: Studio Building & Renovation Basics

by Gene Gowen

Cold River Piercing & Fine Jewelry, Albany NY

It is a privilege to contribute to the first issue of The Point for 2019, and to lend my experience to the theme of “Our Future” as an industry.

This is an industry of small businesses and entrepreneurs, and with small business and the entrepreneurial spirit comes the possibility of ownership and the hope of deciding one’s own fate. For many, that means building or renovating your own work space, sometimes needing to meet specific building codes, or perhaps to meet APP environmental criteria for membership.

Cold River Piercing & Fine Jewelry, Albany NY, main showroom under construction.

Whatever small business experience you’re coming from or going to as a piercer—opening your own free-standing studio or developing space in a tattoo shop—hopefully this article serves as a useful guide. You will learn what can be expected, as well as some things to remember in building out a commercial space. Opening and closing tattoo and piercing studios is nothing new, and I’m sure there are those currently with multiple locations who could speak on this. In this article, I will be focused more on speaking to those who are branching out on their own, whether it is renovating their own piercing room or attempting their first studio space.

I have renovated and built out tattoo and piercing businesses of all shapes and sizes in both Connecticut and New York. My background was in building trades. I worked as a builder full time for more than 12 years before taking up piercing. I am trained and have worked in all forms of residential and commercial roofing, asbestos and lead abatement, custom high end deck and patio construction, residential and commercial building/additions/renovations, restorations, and residential/commercial property management and maintenance. These experiences served to help me as I prepared to build my own studio space. I am confident that they will also help you.

Cold River Piercing & Fine Jewelry, Albany NY, main showroom ready for business.

PLAN AHEAD:

Even if you end up throwing out your plan the night before you start building, plan ahead anyway. Plan for every single thing as much as you can. No detail is too small to include in your plan.

•  Plan your budget

Building costs, inventory budgets, licenses, fees, insurance, cash for your register, living expenses during start-up time are just a few of the things to think about. While these are some of the financial concerns you’ll want to plan for, sticking to them is the hard part. Building costs will likely require an experienced contractor to estimate. Your build-out budge will vary based on the amount of work you want/need to do.

•  Plan your time of year

The time of year you renovate or build your business can affect a lot of other factors. Are you building during your slow time? Is it going to cut short your cash resources? Are you scheduled to open during your slow time? Will it hamper initial success? Are you attempting major exterior work with winter approaching?

•  Plan your work

Projects can run-away from you fast. Get accurate estimates on an accurate amount of work. Stick to the work you’ve planned. Don’t just plan what work you will do, but also your timeline and order of work. Don’t have people sheetrock and cover walls before you have your electrical done. Keeping to a planned timeline, when possible, will help prevent doing the same jobs over again.

•  Plan for success

Whether it’s planning your budget, your inventory, or your build out, leave room for success. Jewelry inventories can be modest when first starting; make sure you have room to accommodate the natural increase in inventory selection that will occur as you are open longer. Having all the jewelry will matter little if you have no place to put it. You can use your initial budget to help you increase your inventory selection over time, simply by being judicious with your initial inventory orders.

Essential documentation

LOCATION:

Choose your location carefully; you’ll likely be there for awhile. There are a number of factors you should consider when picking a good potential location, whether for your own shop, or inside an existing business. Population and demographics for the area1, amount of foot traffic, and access to parking are important for both situations. Leasing costs will be necessary whether you lease your own space or sublet. Bear in mind most commercial real estate is not a simple monthly rental fee. There are often NET2 costs and CAM charges3. These fees may exist in addition to your monthly lease.

Piercing room under construction
Piercing room ready for clients

BUILDING/ZONING CODES & PERMITS:

Zoning codes will dictate whether or not your business can even exist in the location you’ve chosen, so it is best to look into this during the beginning of your process. Building codes will dictate what changes you can and can’t make, and the manner you are allowed to do them in. Codes will vary depending on area and building type. For example, a studio opening in a residential building might be able to use wood framing lumber, while something in a strip mall will likely require steel framing. The cost difference between these materials is substantial and can drastically change your build out capital requirements. These building codes not only stipulate material types and uses, but also govern handicap accessibility, historical restrictions, and acceptable and unacceptable mechanical4 conditions. A large portion of all of this work will require permits. Generally speaking only licensed contractors can pull a permit, if the work you need requires one. Permits and the subsequent inspections to verify the work are lengthy processes. In my experience, required permits and inspections can be the things that most commonly cause delays in a project.

AVOID SURPRISES:

Surprises will always arise with any building project. The goal is to eliminate as many surprises as possible beforehand. The story of building your own business changes rapidly when you unexpectedly find termite damage, asbestos wrapped pipes, or some other hidden detriment that will cost thousands of dollars and weeks of time to mitigate. A thorough property assessment by a qualified contractor including a hazardous materials survey and a EUL Report (Expected Useful Life) on mechanicals can save time and money! Even after you’ve checked for surprises, and eliminated as many variables as possible, plan a little extra time for your project as a precaution!

If you are lucky, your new studio space will require very little work. Hopefully all you need to do is some minor upgrades and a few coats of paint. Regardless of the size of your studio project, do thorough research and thoughtful planning on everything, not just your jewelry inventory and piercing supplies. I hope this article helps you on your journey, and that you are able to successfully build your own studio space. Plan carefully and thoroughly. Look for a location as objectively and as informed as you can. Follow through with the appropriate civic departments. Expect the unexpected. These are just some of the basic fundamentals of commercial building projects. Keep them in mind and it will make every step of the process easier.

Footnotes:
1 Population & Demographics: Population numbers, median age, median income, population density, education data, average debt, common professions. All of this is easily accessible information that can be found online. All of which can help inform your decisions about the area you are considering opening in. The US Census Bureau is a great place to start.
2 NET Lease: In a NET Lease, the landlord charges a lower base rent for commercial space, plus some or all of their “usual costs”, which are expenses associated with operations.
In a single net lease, renters are required to pay the base rent plus a portion of the property taxes for the building. Double net leases require the renter to pay the base rent plus taxes and property insurance costs; this is beyond your own business insurance. Triple net leases require the renter to pay base rent plus taxes, insurance, and CAM (Common Area Maintenance ) charges.
3 CAM Charges: Common Area Maintenance are expenses incurred in shared, common area, such as utilities, sidewalk maintenance, snow removal, etc.
4 Mechanicals: Plumbing, Electrical, and HVAC (Heating/Venting/Air Conditioning) would be your mechanical systems. Each system has specialty contractors who works solely within their discipline and area of expertise.