Possibly Purchasing Existing Salon... - tanTALK

caribbeansun01 · 01-05-2005, 02:02 PM

We were proposed to practically walk into this salon and take it over because the current owners can't handle all of their businesses. Are there certain questions we should be asking? Are there things we should look out for? This would be our second location, in an area where the nearest salon is miles and miles away. Any input would be great.

tanu01 · 01-05-2005, 02:24 PM

Just watch yourself on the former owners payables,other than that if your also operating one salon you should already know

sunsally · 01-05-2005, 03:56 PM

No cost to you at all - just take it over, lock, stock and barrel?? (or clients, beds and lotions?)?

Hmmm, DOES seem a little "too good to be true"

I'd make sure you talk to the landlord and find out the lease details - if it is assumable, or what your lease would be.

Any leases on the equipment that you would be responsible for? Build out is all paid for and no 'liens' on the property or business?

Any major road construction or zoning or anything else crazy about to happen that could seriously hamper this salon's traffic?

Are they "selling" it to you, or asking you to manage it??

Does their "model" (equipment quality, pricing structure, customer service attention, salon cleanliness,..) "fit" the way you would run things or would you want to make drastic changes?

Is there staff or are they running it? If staff, do they want to stay? Do you want them to stay? If no staff, could you have yourself or others in place, QUICKLY, with the season here?

And ditto Tanu01 - what do they have "on the books" that you would have to honor in terms of outstanding packages?

If all that checks out - Congratulations, you may be a multi-salon owner!!!

caribbeansun01 · 01-05-2005, 05:30 PM

Let"s see, we are going tonight to check out her books. It is a small salon (4 beds, 1 standup, no upgrade units), plenty of room to expand, lots of potential. She would sell us the beds at half of what she purchased them at. We can have her stock. This couple owns the building, so they are the landlords, and charging a very low rent and she is willing to hold it until busy season hits (March up here). They are selling it to us, we are changing the name. We would go in and completely redecorate and redo everything. We would put in a computer system and be open longer. Thank you all for the info.

sbtan · 01-05-2005, 07:41 PM

Which one? I guess you might not answer that.

caribbeansun01 · 01-05-2005, 08:52 PM

LOL, not yet sbtan

sbtan · 01-06-2005, 04:27 PM

Are you going to honor the existing clients packages? Get all info on existing packages and outstanding GC. When we purchased ours they did not give us anything until the day we closed, some of the product they left was un sellable because the kids thought they could use them as samples and they told us there was 1 $10 GC out there WHAT A LIE that was.
Are you giving up the name yet?

engfant · 01-06-2005, 04:30 PM

Pleanty of ROOM to expand...doesn't mean the electricity is there. Could be selling cause the place is always tripping the breakers.

West Side Tanner · 01-06-2005, 05:23 PM

I'm always tripping. But not with breakers.

caribbeansun01 · 01-07-2005, 10:57 PM

We"re putting up our name. Finally think we found the beds we"re going to go with. Thanks for the info sbtan, never even thought of that one. Plenty of room to expand, they told us that his buddy is an electrician and will do the work if we are ready to get to that point. As far as breakers, maybe I"ll suggest our electrician check it out. Thanks for the input guys. It helps when someone else who"s been around the block helps out.

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01-05-2005, 02:02 PM	#1 (permalink)
caribbeansun01 I love Derf!! Join Date: Dec 2 2004 Location: Depew, NY Posts: 911 Rep Power: 24	We were proposed to practically walk into this salon and take it over because the current owners can't handle all of their businesses. Are there certain questions we should be asking? Are there things we should look out for? This would be our second location, in an area where the nearest salon is miles and miles away. Any input would be great.

01-05-2005, 02:24 PM	#2 (permalink)
tanu01 "The Man" Join Date: Mar 4 2003 Location: ohio Posts: 4,015 Rep Power: 23	Just watch yourself on the former owners payables,other than that if your also operating one salon you should already know

01-05-2005, 03:56 PM	#3 (permalink)
sunsally Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter! Posts: 3,136 Rep Power: 25	No cost to you at all - just take it over, lock, stock and barrel?? (or clients, beds and lotions?)? Hmmm, DOES seem a little "too good to be true" I'd make sure you talk to the landlord and find out the lease details - if it is assumable, or what your lease would be. Any leases on the equipment that you would be responsible for? Build out is all paid for and no 'liens' on the property or business? Any major road construction or zoning or anything else crazy about to happen that could seriously hamper this salon's traffic? Are they "selling" it to you, or asking you to manage it?? Does their "model" (equipment quality, pricing structure, customer service attention, salon cleanliness,..) "fit" the way you would run things or would you want to make drastic changes? Is there staff or are they running it? If staff, do they want to stay? Do you want them to stay? If no staff, could you have yourself or others in place, QUICKLY, with the season here? And ditto Tanu01 - what do they have "on the books" that you would have to honor in terms of outstanding packages? If all that checks out - Congratulations, you may be a multi-salon owner!!!

01-05-2005, 05:30 PM	#4 (permalink)
caribbeansun01 I love Derf!! Join Date: Dec 2 2004 Location: Depew, NY Posts: 911 Rep Power: 24	Let"s see, we are going tonight to check out her books. It is a small salon (4 beds, 1 standup, no upgrade units), plenty of room to expand, lots of potential. She would sell us the beds at half of what she purchased them at. We can have her stock. This couple owns the building, so they are the landlords, and charging a very low rent and she is willing to hold it until busy season hits (March up here). They are selling it to us, we are changing the name. We would go in and completely redecorate and redo everything. We would put in a computer system and be open longer. Thank you all for the info.

01-05-2005, 07:41 PM	#5 (permalink)
sbtan Join Date: Dec 2 2003 Location: East Amherst, NY Posts: 396 Rep Power: 21	Which one? I guess you might not answer that.

01-05-2005, 08:52 PM	#6 (permalink)
caribbeansun01 I love Derf!! Join Date: Dec 2 2004 Location: Depew, NY Posts: 911 Rep Power: 24	LOL, not yet sbtan

01-06-2005, 04:27 PM	#7 (permalink)
sbtan Join Date: Dec 2 2003 Location: East Amherst, NY Posts: 396 Rep Power: 21	Are you going to honor the existing clients packages? Get all info on existing packages and outstanding GC. When we purchased ours they did not give us anything until the day we closed, some of the product they left was un sellable because the kids thought they could use them as samples and they told us there was 1 $10 GC out there WHAT A LIE that was. Are you giving up the name yet?

01-06-2005, 04:30 PM	#8 (permalink)
engfant Join Date: May 20 2003 Posts: 9,301 Rep Power: 29	Pleanty of ROOM to expand...doesn't mean the electricity is there. Could be selling cause the place is always tripping the breakers.

01-06-2005, 05:23 PM	#9 (permalink)
West Side Tanner Join Date: Dec 27 2003 Location: Florida Posts: 1,818 Rep Power: 21	I'm always tripping. But not with breakers.

01-07-2005, 10:57 PM	#10 (permalink)
caribbeansun01 I love Derf!! Join Date: Dec 2 2004 Location: Depew, NY Posts: 911 Rep Power: 24	We"re putting up our name. Finally think we found the beds we"re going to go with. Thanks for the info sbtan, never even thought of that one. Plenty of room to expand, they told us that his buddy is an electrician and will do the work if we are ready to get to that point. As far as breakers, maybe I"ll suggest our electrician check it out. Thanks for the input guys. It helps when someone else who"s been around the block helps out.

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