|
New To The Tanning Business Interested or Future Salon Business Owners discuss Topics Here and Ask Questions To The Pros. |
| LinkBack | Thread Tools |
04-14-2004, 12:50 PM | #1 (permalink) |
Join Date: Apr 14 2004
Posts: 3
Rep Power: 0 | My wife and I have zero experience running a tanning salon. We have been researching and looking for something that can support us, and we've found an owner selling 2 salons (leaving the state supposedly). The claim is each salon is netting a little over 40, and both are staffed with a FT manager and some PT-ers. After the learning curve we would manage at least 1 of them ourselves, saving about 20k a year on salary. Is this a crazy thing to do, not know the business (aside from tanning ourselves)? What kind of price should I expect to pay for something like these? I can find a "rule of thumb" for most types of businesses (e.g., X times ACF or 1/x of gross, etc.), but haven't found one for tanning salons. I know there are many variables, but I have zero to go by now. Thanks! Netto _________________ [ This Message was edited by: netto on 2004-04-14 12:51 ][ This Message was edited by: netto on 2004-04-14 12:52 ] |
04-14-2004, 02:19 PM | #4 (permalink) |
I love Derf!! Join Date: Mar 12 2002 Location: Undisclosed Secure Location
Posts: 2,636
Rep Power: 26 | You aren't nuts. Perhaps you are a little foolish, but you're not crazy. It's the middle of the busy season. Take 9 months to write a business plan and learn about this business and then open or buy a salon before next season. |
04-16-2004, 11:17 AM | #5 (permalink) |
Join Date: Apr 14 2004
Posts: 3
Rep Power: 0 | So netting 40 is...below average? I'm doing 2 because I can't live on 40. I do need to know where to find the value of the beds and booths. There are 11 booths, 10 from '88, 1 from '02, so I'm relatively sure the old ones are close to worthless...is that correct? There are 11 beds - 4 from '98, and 7 from '99. Is there a Web site or something where I can find prices for used units? Thanks. |
04-16-2004, 07:17 PM | #6 (permalink) |
Join Date: Jan 19 2004 Age: 47
Posts: 505
Rep Power: 21 | Seems like a big step, You better do some serious research into the business. Whats he asking for the places? Your gonna need some new equipment, serious money. Condition of the salons? rundown or like new? Lots of questions to be asked. |
04-17-2004, 01:24 PM | #7 (permalink) |
Waiting Confirmation Join Date: Apr 1 2004
Posts: 413
Rep Power: 0 | After re-reading this, my advice, based on your admission of '0' experience, and the age of the equipment, concentrate on only one salon; the best of the two. I personally think you need to research this industry before committing. Contrary to beliefs, this is not a get rich quick scheme. There is a great deal of resposability and knowledge to be obtained, that only research can help. Do you have any biz experience?? I would suggest you contact your local SCORE/SBA/SBDC office. many classes on business are offered for free. You need to take them. It took me 4 years of reasrch, industry trade shows, sit in many seminars, pick the brains of every salon owner in every town my travels would take me etc etc.. You have a long road ahead.. |
04-17-2004, 08:20 PM | #8 (permalink) |
Join Date: Nov 30 2000 Location: Ontario Age: 61
Posts: 38,594
Rep Power: 107 | As with any business purchase you have to look at the real books. If they won't give them up then bail. If they are computerized look at the client list and print out the pertinent reports. Talk to Employees away from the salon and ask them what's going on. Look at the gross revenues, if you feel they are true, and then determine if they are enough for you to survive........ Tanning salon to Grocery Store you have to make sure you are confident that financial records are for real......... |
04-17-2004, 11:55 PM | #9 (permalink) |
Join Date: Apr 14 2004
Posts: 3
Rep Power: 0 | That's the thing, I'm not sure on these if I can tell what's real. She had 3 salons total, and of course, all the numbers were compiled for tax returns. I know that returns don't mean much, but it's the only objective piece of the puzzle. On the cash end, how can you tell? I had one broker show me about a dozen notebooks for a manufacturing business he was selling, and his point was that they were filled with real numbers -- not just something someone scratched out on a Saturday afternoon to make the biz look good. I think my key to not getting stuck is making sure the purchase agreement gives me an easy out. The one I've seen does, saying things like, "The Agree is contingent up on the Buyer's review of financial records and a finding by the Buyer tha they are satisfactory." The timing sucks too, really. Just got laid off from my real job, and the market still sucks for my normal line. I managed a small clothing store and a photography shop for a while, and I have a degree in management. I've also supervised 5 in a corporate setting. Not quite the same though. I really appreciate everyone's input. So to replace those 10 booths, 30-50k? |
Bookmarks |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
Thread Tools | |
| |
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
I hate to bring up ETS again but.... | JIMJEN | New To The Tanning Business | 50 | 05-11-2008 09:38 PM |
How do I determine my salons worth?(Selling Price) | tannazi | General Tanning Industry Discussions | 5 | 02-04-2005 02:33 PM |
Investor Interested in Purchasing Salons | DanTheBeachBum | For Sale - FOR SALON OWNERS ONLY | 0 | 08-23-2004 11:49 PM |