sunsally

Any "investment" where you go into it saying "any profit will just be gravy" is silly. If it isn't going to be profitable, don't bother of course. Now - if you just mean that you won't have to LIVE off the salon cash flow for awhile, that's good. Most salons lose money the first year or two, and take until year two/three to break even or show profits.

Borrowing from banks where you have a good relationship is always good - tends to be the best rate. Don't be surprised however if your bank is less than warm to the idea of tanning. Historically, banks haven't done well loaning to tanning salons - they have not been a good investment, especially recently.

Generally, 10% of the population tans. If you have only 17,000 in the 5 mile radius of your salon, this would be 1700 potentials. This is a very small market and would be very hard to keep a 15 bed salon busy - or profitable. If you can pick up a lot more of that "drive by" traffic, that would help. But most people tan within a very short radius of where they work or live, so if they are just "driving by" on the way to get to those places and it isn't close - don't depend on them.

Houston is a very competitive market. Darque Tan is a formidable competitor. If this location is outstanding, expect them to move in soon. Their equipment mix would blow anything from ETS away.

Opening in June just means you will have to cash flow the salon even longer than usual. Plan on having 6-12 months worth of expenses in the bank and ready to shell out. Every slow season follows a busy season and vice versa, so the timing of when you open isn't a deal breaker, unless you don't have those cash reserves. June isn't generally a great time to be opening a gym either in most areas. Don't bother doing a lot of marketing during the slow season that is costly, as generally the ROI is very low. Focus on getting your name out locally and through word of mouth.

Overall, it sounds as good - or bad - as any other salon opening in today's market. The tanning industry is overall in decline, and oversaturated. There is money to be made, but generally it is being made by those that have been in longer, and operate from the advantage of lower rent, paid off equipment, established clientele, etc. Or multiple locations where their name recognition helps to drive their marketing.

Given what you have shared so far, and the current state of the industry, I'd say there are much better investments to be made with your money than a tanning salon. The "boom" years in tanning are long gone. However, I'm sure SOMEONE will open in that location- they continue to go up on every block. They may or may not be successful, but they WILL open.

If it is you - best of luck! Continue to read the boards and get as much education as you can before you open. Since you have until June, think seriously about leaving your equipment decisions and others "open" until you can learn/research more. "Gently used" better quality equipment would be an option I would consider.

Keep us posted -