StacyLY

I breifly talked with the owner yesterday and I have a feeling he's going to hit me high. I know a few things I need to look for to bring his price down are the beds, time left on the bulbs, his total sales for the past couple of years, outstanding tans, payroll, electric, lease, and stock of lotion. He told me he's tanning 250 people a day, with an eleven bed salon. An employee of mine worked for him last year and sayes that number is way off, more like 100. I love the location and I'm about to outgrow my salon and have no room for expansion. Any tips, ideas, questions to ask would be GREATLY appreciated!! Everyone on here is always so helpful!! Thanks in advance!

sunsally

1. Do NOT move quickly!!!! Do your homework!

2. Ask to see actual electric bills for the past year - you can estimate usage from these

3. View the hours on the beds yourself

4. Get filed tax returns. Sales tax returns if they have sales tax

5. If computerized, ask to get on computer and look at daily sales/tans per month, etc across the year

6. Sit outside the salon one day and do a body count yourself


Then in general -

1. How much is rent - is this assumable, how many more years, does it go up or stay steady?

2. Is all the equipment owned free and clear or any loans/leases?

3. What is he asking? How did he determine his price?



Don't rush, don't rush, don't rush!! Do ALL your homework!! There is a reason they are selling - and NORMALLY - if a business is making money hand over fist - people don't sell...........

agk453

^^ Agreed, big time ^^. I'm looking at a second salon and was going to ask similar questions then it hit me:

- it's the start of the slow season. why would I buy NOW? If it's still for sale in september I can look at it again, for probably less than they're asking now.

- 2nd salon means it's no longer a 1-person operation so I would have (more) payroll and other hopefully dependable people into the mix. Does the revenue picture support that? Still checking.

- I'd have to spend a lot of time at the new place, which means puttling less attention into the first place - it may hurt, it may not. But for me it's real important to be sure that the primary site is safe before expanding and possibly losing everything.

Bottom line - I'm letting the existing owner suffer thru most of JASON instead of me. If it sells, it sells - there will be others. Don't hurry.


Bottom line for me was to stall until September or later. If it goes, it goes.