09-30-2005, 05:06 PM | #1 (permalink) |
Join Date: Sep 25 2005
Posts: 56
Rep Power: 0 | I live in a gated area of 4800. Five bed competition is about 7 mi away, and Planet Beach is about 20 mi away. I am looking at a 1000 sq ft that is costing me about 35,000 to finish out. My lease on equipment is 35,000( 2 level I and 1 Level II-Puretans. I am also putting in 2 hair booths($125wk) and a nail booth($70wk)The salon is starting to cost me a lot and dealing with stylists and manicurest can be crazy and unreliable. My rent is going to run 950.00 mo. I borrowed all the money. Am I crazy to think I can make it on 3 beds to start??? |
09-30-2005, 05:17 PM | #2 (permalink) |
Team TanTalk Join Date: Aug 12 2004 Location: ITA 2004-2013 / ASA 2013
Posts: 3,444
Rep Power: 30 | I don't see how 3 beds can pay the bills even with hair and nail rental income. Are you saying that those 3 beds are going to cost you 35k? I'm accustomed to seeing 3 beds in hair salons who use them for incremental income, not the main source of income. Based on what you are saying about the stylists and manicurest I would suggest that you not count on recieving that extra income when you calculate what it will take to break even. |
09-30-2005, 05:43 PM | #3 (permalink) |
Join Date: Nov 30 2000 Location: Ontario Age: 61
Posts: 38,594
Rep Power: 107 | Costs don't seem to be too wild. But Movieking is right when he states hari salon use 3 beds to make there vacation money. Your rental for the stylists seems a bit low compared to here.......... Are you renting them space plus a percentage? |
09-30-2005, 06:13 PM | #4 (permalink) |
Join Date: Sep 25 2005
Posts: 56
Rep Power: 0 | 3 beds for 21,000. The salon equipment is costing me the rest. Our gated community is in a country about 20 miles from a larger town. We have a small strip center in this community and that is why I thought of the salon. As a tanner myself, I don't tan bc I don't want to drive to town. We are a country club so there are some higher end homes, however, we are dealing with smalltown mentality. My husband has a great job and this was going to be a supplemental income. What I don't want is to LOSE money. |
09-30-2005, 06:27 PM | #6 (permalink) |
Team TanTalk Join Date: Aug 12 2004 Location: ITA 2004-2013 / ASA 2013
Posts: 3,444
Rep Power: 30 | It seems to me I heard the average salon grosses around $18,000 (don't quote me)per bed per year. Can you pay your rent, labor, loan/lease payments, insurance, utilities, lotions, bulb/bed repair reserves and all of the other misc. expenses with $54,000 and still make a profit? |
09-30-2005, 08:15 PM | #10 (permalink) |
Join Date: Sep 22 2005 Location: Ocean Age: 53
Posts: 123
Rep Power: 19 | "If" you made 12k a year net that is a 15% cash on cash return. Can you do better in another investment with less risk is the question. What happens if you loose your entire investment? If you do not make money for two years and you sell it for a loss, what happens? |
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