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Old 02-02-2005, 09:10 AM   #1 (permalink)
 
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I am considering starting up a salon. The town that I am considering is located in the Midwest and has a population of approximately 4000. There are 3 beds in town now, and the next closest are roughly 20 miles away. I am planning on having 7 beds (4 base, 2 high end and a stand-up) with room for 4-5 more. I am leaning towards Heartland beds now. I estimate that the whole set up should run around 150,000 including purchasing the building. What do you think? I am confindent that this is a sound plan, but I am curious what others might think about it.
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Old 02-03-2005, 01:06 AM   #2 (permalink)
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real estate is usually a sound investment. Buy the land and be certain to not spend too much too soon. Reduce it to 3 LPs and 2 upgrade units. also--I would wait on the stand up if I were you. Have the other rooms ready and waiting...when you are ready to fill them. I would try to offset your slow too. Build rooms to rent that would accomidate other services such as Nail techs, massage, body wraps, facials. available... JMHO.

Just a little tip--never EVER let anyone-- not even the staff --know you own the land.
Of course, You know to have a seperate corp purchase the land.. and pay yourself rent. In the event you ever sell the salon down the road then the new guy will pay you rent.

Good luck and do not go to big too soon!
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Old 02-03-2005, 07:41 AM   #3 (permalink)
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Very good advice MJ we own the building for our salon. We have what is called a holding Co. that rents space to the salon. We are also looking into leasing the beds form our holding Co. Talk to your lawyer about setting up the different Corps. We have the salon and holding CO. as an LLC- S Corp.

WOW…. 150 including the building? What are houses going for?
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Old 02-03-2005, 07:48 AM   #4 (permalink)
 
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3 beds or 3 salons in town now???
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Old 02-03-2005, 01:36 PM   #5 (permalink)
 
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Only 3 beds, and 1 is broken. I am sure that they are old beds, although I haven't verified it yet. A large/newer house would probably run about the same.
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Old 02-03-2005, 11:23 PM   #6 (permalink)
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Kay --we own the land at our other business(not tanning related)..we set it up to be a 'graduated' lease.
So by the time we remodel the station and give it a few years..the land will be paid off. ( or close to it.)Since the first few years can be tight--By then we can either lease both land and business-that is done in that industry a lot. It is sort of like corperate run station where we stay on as dealers... It's hard to explain.
Doesn;t matter...the other option is..
sell the business and becasue teh graduated leasing rate they are not at much higher monthly land lease...after they pay of the business -- maybe we will sell the land to them. (and maybe not):wink:

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Jane... You Ignorant Sl*t!!![ This Message was edited by: MJ on 2005-02-03 23:28 ]
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