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Old 01-04-2005, 01:28 PM   #10 (permalink)
JohnnyComeLately
I'm Banned
 
Join Date: Oct 2 2004
Location: San Diego
Age: 51
Posts: 510
Rep Power: 0 JohnnyComeLately is on a distinguished road
If you're looking to work it yourself, it seems this is a barely break even place. You've gotten some good feedback from others, so I'll just add what I learned from purchasing ours last month.

Power. Can your unit handle the draw you'll need to upgrade? We are using a meter from a neighbor and now have 3 meters, each rated at just a little over 100 amps. Talk to staff and see how the AC handles the Florida summer. I'm coastal and in San Diego. We open the doors and get ample AC

Never believe their numbers. A "barely breaking even" place will likely be "losing it's behind" even if you looked at their CPA prepared numbers. In my case it was easier for them to hide because they had 3 salons. There are unexpected items that somehow never show on a balance sheet or expense ledger... yellow pages ads, workman's comp, unemployment insurance, regulatory costs (health permit, tanning permit, etc).

Your decision really needs to be based upon your goals. If it is to be profitable, I'd pass on this. If it's to somehow get a foot in a door, 10k seems reasonable. We bought ours because we needed to get our "feet wet" for larger businesses we plan to operate down the road, and my wife enjoys the tanning industry. So the personal reasons outweighed the financial reasons. From a purely financial standpoint, we too should have skipped.

John, MBA
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