Neon Beach

Anyone here see my mouse??

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sean_white04

Im sorry neon is that an inside tanning joke?

sunsally

Sean -

there are a lot of posts on here about how to determine the "value" of an existing salon. Sellers usually want to count all the "goodwill" and customer base they have built up. Buyers should be looking at it as an asset purchase (the value of the used beds and other equip -- which generally is quite depreciated) and the negative side of a built up business -- packages that are already sold and in theory "owed" to customers once it is your salon.

The buildout? That "belongs" to the landlord. Sure, it may have cost a pretty penny and it might cost you a lot to do it somewhere else -- but not a lot of "value" to it from the buyer's side.

Make sure you have talked to the landlord - that they'll continue the lease for you, what the terms would be, etc. Any major "changes" positively or negatively coming soon? -- addition or loss of tenants, major road work out front blocking access, etc

If you did CRAZY well with it -- could you expand? Like caribbeansun said, is there sufficient AC and power to put in more/better beds?

All things to get you started. In general, the "money" part of the year is RIGHT now. If you don't buy until later summer/fall, plan on riding it out for several months with negative cash flow before you get back to Feb/March again.

glowtanning530

Sean I am 25 and this is my first business. Research, research. research. I don't know if I would have done this if there was more than one salon in this town. I am the only one. So I had client base to work with. I am glad I did it . I have never been happier, but check everything! There are alot of extra costs in buying a business you miss at times

bronzeman11

Hey Sean, you sound like a really bright and really together young guy. Don't let anyone ever disuade you. I'm in Central NJ so if you'd like to come down to my salon i'd be glad to help you out in any way possible. Very impressive dude! At 19 i was married with a son already so don't let anyone throw the age thing in your face. PM me if you'd like and Good luck!!!!

P.S. Don't **** off Belvy....he's better now but he's still dangerous.

bronzeeffects

sean_white04

haha no, the husband definitley knows about this one!

Sandless thong

Sean - remember this - if and when you decide to buy one of these existing salons - this business is all about marketing your business and good customer service. If I were you I would have one of the tanning equipment mfgs create a demographics report on the areas you are looking at to help you assess which area is better. Mt TanAmerica contact was able to give me comprehensive demo reports prior to my sight selection. Ask around too. Word of mouth is powerful. What do the neighboring businesses think about each salon?

And finally, remember, this is, as someone previously mentioned, a very seasonal business in areas such as NJ. and THIS is the season. Dont look at just their current numbers look at the entire year's sales history. And if you dont finalize the purchase of either salon until june or july, then know that you missed the season this year, and be sure to have plenty of operating capital to see you through until next season.

Hey Belvy. will you please run spell check on this post for me? Thanks babe! ;)

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stand up and cheer if you are a tanning addict

sean_white04

Thanks sandless, Ive narrowed down the search to the one I want. I asked for the yearly cash flow statments, income, expenses etc...Luckily my family is behind me 100% on this as far as supporting my ideas. My sister has been looking into the industy for about the past 4 years so she has been helpful along the way. I really do appreciate how much you guys are helping me out with my decisions. This is a great community and Im hoping to become a permanent part of it, rather than just a passer-by.

PHD

I'm in NJ too, when we first opened 9 years ago, we were the only salon in town, since then 4 other salons have opened and 2 of those have closed. Those that closed didn't even make it 2 years. One that is opened has been opened for 7 years and the other one just opened this year and I hear they are having problems. This is a very tough business. Those owners that put their heart into it are successful, and those that are silent owners and this is just a business venture are not. Know that you are going to have to work very hard and save all the extra money from busy season to make it through slow season. Good luck, check the past 5 years of the salon and make sure the numbers growning or staying steady. If you see a decline steer away.