Opening a new salon - tanTALK

jon0823 · 06-18-2005, 02:17 PM

My husband and I are opening a salon within the next few months. We already did the business plan, are deciding between two laocations, are lining up the finances, etc... We were told by our CPA to find out what the other salons around us did their first year because she said our projections were too high. We said we would have the beds (6 of them-a variety) filled fifteen percent of the time which we thought was conservative from the information we have been digging through for a while now. That did give us quite decent figures at the end of the year. We of course want to be successful, but don't want to shoot ourselves in the foot by aiming too high and falling far short, as she made it sound. We are ready for the ups and downs and really are aiming to be realistic. Could we please get some figures that some of you saw come in from the first year of being open? We appreciate any advise as well!!

navigatin1 · 06-18-2005, 02:20 PM

It is different all over the country. See if you can talk to another salon about 25 miles away from you to get a rough idea where you will be.
Also take those first year figures and cut em by another 25% and pray like **** you can do that!

Good luck with your venture!!!

Neon Beach · 06-18-2005, 02:23 PM

Good luck. Oh, and don't quit your day jobs.

DWhite6872 · 06-18-2005, 02:55 PM

I believe in hiring good people around you.... with that said ....accountants and attorneys work for you...not the other way around...and I would doubt they are very knowledgeable in the tanning industry..
How did you come up with your projections?

sue kehoe · 06-22-2005, 10:31 AM

Where are you getting the finances????

SandiGirl · 06-22-2005, 10:43 AM

If you figure out what all your monthly expenses are, how much do you need to break-even?

sue kehoe · 06-22-2005, 11:47 AM

Who will lend you the money to open a new place??

Beach Club Tans · 06-22-2005, 01:39 PM

What basis did you use for your occupancy rates? Overhead costs? Advertising budget? More info.

Laney · 06-22-2005, 03:13 PM

Not to discourage you by any means but sure you have a reserve. We're going on our 4th year and just now making it! You have to be prepared for the "non tanning season" as we call it, and sometimes it's not easy. We've gone from filling every bed every day to practically not having anyone in. If it wasn't for our EFT's I wonder how we'd make it sometimes. Just make sure you do your homework and read as many posts as you can online. This site is invaluable. We've made mistakes (one major one just recently) but you DO learn from your mistakes and trust what your fellow salon owners are telling you. I can't tell you how important these people are here. Many are seasoned salon owners and have "been there done that" many times over. They will give the best advice. Don't be afraid to speak up either. Everyone is on this site to help each other. Best of luck with your salon plans!

pcstutsman · 06-22-2005, 04:14 PM

Yeah, we bought this salon from a previous owner, who said her yearly sales were 540,000! HA! We could only hope.....

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06-18-2005, 02:17 PM	#1 (permalink)
jon0823 Join Date: Jun 4 2005 Posts: 1 Rep Power: 0	My husband and I are opening a salon within the next few months. We already did the business plan, are deciding between two laocations, are lining up the finances, etc... We were told by our CPA to find out what the other salons around us did their first year because she said our projections were too high. We said we would have the beds (6 of them-a variety) filled fifteen percent of the time which we thought was conservative from the information we have been digging through for a while now. That did give us quite decent figures at the end of the year. We of course want to be successful, but don't want to shoot ourselves in the foot by aiming too high and falling far short, as she made it sound. We are ready for the ups and downs and really are aiming to be realistic. Could we please get some figures that some of you saw come in from the first year of being open? We appreciate any advise as well!!

06-18-2005, 02:20 PM	#2 (permalink)
navigatin1 Join Date: Aug 17 2004 Posts: 2,901 Rep Power: 21	It is different all over the country. See if you can talk to another salon about 25 miles away from you to get a rough idea where you will be. Also take those first year figures and cut em by another 25% and pray like **** you can do that! Good luck with your venture!!!

06-18-2005, 02:23 PM	#3 (permalink)
Neon Beach Join Date: Nov 30 2000 Location: Ontario Age: 61 Posts: 38,594 Rep Power: 107	Good luck. Oh, and don't quit your day jobs.

06-18-2005, 02:55 PM	#4 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 3,646 Rep Power: 0	I believe in hiring good people around you.... with that said ....accountants and attorneys work for you...not the other way around...and I would doubt they are very knowledgeable in the tanning industry.. How did you come up with your projections?

06-22-2005, 10:31 AM	#5 (permalink)
sue kehoe Join Date: Apr 29 2005 Posts: 11 Rep Power: 0	Where are you getting the finances????

06-22-2005, 10:43 AM	#6 (permalink)
SandiGirl OFFICIAL BFF member Join Date: Jan 2 2005 Posts: 2,481 Rep Power: 51	If you figure out what all your monthly expenses are, how much do you need to break-even?

06-22-2005, 11:47 AM	#7 (permalink)
sue kehoe Join Date: Apr 29 2005 Posts: 11 Rep Power: 0	Who will lend you the money to open a new place??

06-22-2005, 01:39 PM	#8 (permalink)
Beach Club Tans Join Date: May 4 2005 Posts: 72 Rep Power: 0	What basis did you use for your occupancy rates? Overhead costs? Advertising budget? More info.

06-22-2005, 03:13 PM	#9 (permalink)
Laney Join Date: May 30 2001 Location: Crossville, TN Posts: 144 Rep Power: 28	Not to discourage you by any means but sure you have a reserve. We're going on our 4th year and just now making it! You have to be prepared for the "non tanning season" as we call it, and sometimes it's not easy. We've gone from filling every bed every day to practically not having anyone in. If it wasn't for our EFT's I wonder how we'd make it sometimes. Just make sure you do your homework and read as many posts as you can online. This site is invaluable. We've made mistakes (one major one just recently) but you DO learn from your mistakes and trust what your fellow salon owners are telling you. I can't tell you how important these people are here. Many are seasoned salon owners and have "been there done that" many times over. They will give the best advice. Don't be afraid to speak up either. Everyone is on this site to help each other. Best of luck with your salon plans!

06-22-2005, 04:14 PM	#10 (permalink)
pcstutsman I'm Banned Join Date: Jun 27 2004 Location: Indiana Age: 44 Posts: 4,962 Rep Power: 0	Yeah, we bought this salon from a previous owner, who said her yearly sales were 540,000! HA! We could only hope.....

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