tannyu

OK, I know this is bad, real bad, but I'm just burned out. I'm thinking about selling my salon and and I was stupid when we opened and leased our equipment, now I'm stuck with it! I'm thinking about just letting it go and telling them they can have their equipment back, if nobody wants to take it over. My credit is already screwed up(was great til I opened our salon)so I figure what the heck. I've never done anything like this before and feel incredibly crappy about it, but I just don't know what else to do!! Any advice?!! Help! Thanks.
P.S. I'm quite a smart a$$ myself, but I would appreciate no smart a$$ comments!! :) I'm already stressed,Thanks.

eileen

maybe you could negotiate with the leasing company and find a new salon owner on here to take over the payments and take the equipment.

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"under exposure to UV rays is as dangerous as overexposure....this is D life" eileen

sunsally

In all likelihood, you signed a personal guaranty. That means you are responsible for the balance.

"They" (your lease company) didn't decide what equipment you should buy, how much you should pay for it, where you should locate your business or how you ran your business. "They" just gave you their money so you could start your "dream". So "they" don't want "their" equipment back because it was never theirs - it was what you asked them to buy for you with their money.

Your best bet is to find a buyer for your salon that is willing to take over your equipment payments. Even if you get nothing else for the salon, if they take over your rent and your equipment payments, you will have covered your obligations and they are still probably getting in for a good deal.

Your other option is to declare bankruptcy, STILL maybe owe some of the obligations, AND ensure that you can't make ANY moves financially (getting a house or even a rental, getting a car, opening credit cards,.....) for the next decade.

Season is here. I'd find ways to get excited about your business again and figure out how to make it what you thought it could be when you first opened.

tannyu

I've thought about that, but I don't think there's anyone that dumb. My lease is more than the beds are worth. I'm doomed. I guess I shouldn't feel bad, since so many are dumping their houses, but I've always slammed people like that too!

eileen

My dad bought a saab 2008 convertable yesterday with just 8k miles on it. Someone defaulted on the lease. Needless to say he got a great deal on it.

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"under exposure to UV rays is as dangerous as overexposure....this is D life" eileen

kookyguy

I think it will be much harder than you might think to just walk away from the lease. I would call the lease co and see if you can work something out.

Try not to get too stressed, money will come and go, try to focus on your family and take care of your health.

If you feel you have no other option, I would call a bankruptcy attorney and get thier advise.

mjabaay

Ride out six month and then regroup. Listen to Sunsally, leasing is her life. Make some dough and pay it off, everything is worth less the minute it is used. Go buy a new car drive it off the lot, before the first stop light turns green, you'll lose 10K. In your head write it off as tuition, move on and make the best of it.

sunsally

Again -- borrowing money from other people and then saying "aww - I'm bored now - you deal with it" is NOT "free".

Yes - the buyer of the defaulted equipment probably got a good deal. And the person that defaulted is probably being pursued legally.

When you borrow money, sign a lease or sign a loan, this is a LEGALLY BINDING CONTRACT. This is not "hey - I'm gonna give this a whirl and if it burns me out or bores me or doesn't work -- my bad - you deal with it".

The bottom line is that your lease payments and other costs probably have not changed since you opened. So those are what you "projected". What is NOT what you projected are your REVENUES. This means that YOU have not done what YOU need to do to make the business work. So YOU need to make changes.

I don't want to sound harsh - I want to sound realistic. Once people decide to "go into business for themselves", be their own bosses, be an entrepreneur --- all this stuff is part of the package!

1. Cut every unnecessary cost - NOW!!! From analyzing your phone bill to cutting back on inventory ordering until you sell some off to canceling cable at the salon or whatever else.

2. Make a end of year special and call or email every member in your data base in the next week with it! It can be "buy any package, get a free $25 gift card", it can be "buy any package, get the month of January free" it can be "buy a giftcard, get a giftcard", etc etc. Make it simple, and get the message out TODAY.

3. Analyze your pricing. Is it all over the map? What do you sell the most? Do you know why? Are you selling EFT's?

4. Pick up your mood by DEEP CLEANING your salon. Bring in some holiday decorations (from home) or switch some decorations from home (don't go buy new). If you are "burnt out" - your customers will feel this. Get yourself picked up and excited about your salon again like when you first opened - they'll pick up on this!

5. Run a referral contest. Customer that brings in the most new customers between now and Dec 31 gets a free month of January. Post the results in the salon and talk them up. Do this in an email blast too.

6. Ask local businesses if they want to do a joint promotion with you. A florist, gym, pizza place, nail salon, spa,.....



Many, many ideas to make a business work. But it is WORK! Salons are NOT "if you build it, they will come". Every day you should be passing out your cards where ever you go (to random people in the grocery store, clerks, waitresses,...). Every day you should be asking your customers if they know any referrals for your business.


You can do it, and the "upside" is MUCH more desirable than the "downside".

Good luck!

spraytannedjenn

Great Ideas Sunsally. Thanks

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Woodlands

Unless they owe debts that aren't legally discharged in BK (which is highly unusual in a business situation) then they won't still "owe some of the obligations." In addition, stating that they "can't make ANY moves financially" for 10 years is wrong too:

http://articles.moneycentral.msn.com...ankruptcy.aspx

Not that I'm suggesting it, but I just want to make sure the facts are being presented truthfully.