davidandbecca

By way of introduction, my wife and I are looking to open a tanning salon. I'm new to the industry, but she helped manage a salon for several years.

We went to the ITA event in Nashville - got a lot of good info, but I'm in overload! I've got a million questions, but I'll start with just one issue.

I'm trying to figure out some of the issues on the financial side - how much do we need for start-up and to cover operating expenses for at least several months.

Is there anyone who would be willing to email me their salon's financial statements (mainly P&L and Cash Flow statements) maybe using percentages. I know that is personal, so if this is out of the question I understand 100%. I feel I need an example to build from.

Should I invest some money in one of those templated business plan programs that automates some of this?

Thanks!!

caribbeansun01

A sound piece of advice is this: when you think you have a number in your mind that is your "start up fee", you can pretty much count on that figure being way off. Not too many projects open and stay within budget. It is hard to ask for a financial statement from owners on Tan Talk because not every market is the same. It depends on saturation of your market, what equipment you are going to carry, where you are planning on having your salon and alot of other factors. I would say maybe getting a templated business plan is the best advice. Plan on saving during the busy season so that you do not struggle as much or dip into your own personal savings. All in all, make sure you explore all aspects of this business. There are many nooks and crannys!

carolinatans

First, tell people where you are located. A lease from State to State may differ by thousand's of dollars. Get a figure in your head then DOUBLE that and you will be close to what it will take to open.

Mali

now carolinatans, why would he care to share his location when you are not? He gave more information on his location then you do...

Mali

now carolinatans, why would he care to share his location when you are not? He gave more information on his location then you do...

davidandbecca

How about this....are there any "rules of thumb" you can pass long that would help in doing my calculations?

For instance:

daily max capacity = (# beds) * (2.5 tans/hour) * (12 hrs/day) * (avg. $$/tan)

average capacity utilized per month?

Let's say my numbers @ 20% capacity equals 48 tans/day --- how many customers does it take to average that number on a daily basis? Off the top of my head, I'm thinking maybe 400. Some tan 2-3 times/week, others once a week, others less.

Any kind of insight into the managerial accounting of a tanning salon would be helpful.

Oh yeah - I'm in Southwest VA - don't want to say exactly because who knows if my competitors are reading this.

Thanks!

Mali

If you are in the tidewater area of VA you have NOTHING to worry about, open a salon you will never be happier. I am completely serious when I say that. PM me if you'd like, I am from Virgina Beach and worked in salons there since I was 12. I am in NC now.

Tanzenite

Reaserch, research, research! You will find so much good information on this site about opening a new salon. This question has been asked many times, so use this site for all its worth

tanthisbak

you have so much work to do. pricing beds and equipment that you want. Look at lots of locations and get quotes from agents, pretty much tell you per square ft. $. then you need demographic from an agent on locations. you need to price everything in a salon for day to day operations cash register, calculator. and be sure you have enough money to cover the min 5 months down time

BigLeo

The solution to your needs is none other than Pointblank Business Technology. they have a program called TanPlan that allows you to write a business plan and develop a set of financial projections for your salon. Having used this product myself I can vouch for its capabilities, user-friendliness (especially if you are a newbie and don't know anyting about financials) and features. Check it out when you get a chance.

Leo