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Old 09-26-2006, 07:18 AM   #1 (permalink)
 
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SCARED

I am opening a salon in a brand new strip mall located in front of our local mall. Population about 35K in my town. Still finishing up on my demographics info. Final numbers are starting to come in and I am very nervous

Rent for a 1300 sq. foot building $2100 (includes common area maintance, T&I)

I have no idea what the the electric bill will run

Payment on beds approx. $2386 mo.
(for Soltron Beds, 1 shark, 1 wave, 2 hot pepper, 5 Kiss) I have not fully committed to these beds, I am considering starting with fewer. Price also includes delivery, setup, timer system, software, $2500 of product and a marketing package.

I am considering these beds instead (5 seashell, 1 flirt and 1 shuttle stand up unit) They are all also Soltron

My space is a vanilla box that is in the process of being completed. I will not be allowed any build up costs since it is already almost done. What is left is the ceiling, texture & paint of walls and bathroom fixtures. They will go ahead and finish all for me. I will have to pay for upgrades of electic (currently only set up for 225 amp) and will probably have to add more a/c it only has a 5 ton now.

Company I am working with is working on my break even analaysis so I guess I know more later.

But just the rent and payment of beds scares me to death. I hate the thought of the possibiltiy of not at least breaking even in the first few months! Any thoughts or suggestions on the rent or bed scenerio?

New and NERVOUS!!
Thanks in advance!
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Old 09-26-2006, 07:23 AM   #2 (permalink)
 
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Re: SCARED

Hope you also have about 6 months of expenses banked somewhere.
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Old 09-26-2006, 07:43 AM   #3 (permalink)
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Re: SCARED

You'll be lucky to break even the first year.
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Old 09-26-2006, 07:47 AM   #4 (permalink)
 
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Re: SCARED

GIVE ME A CALL I BEEN IN THIS FOR 11 YRS ,IF YOU DID NOT PURCHASE YET I HAVE GOOD STARTER INFO FOR YOU. RICK@SUNPALACETAN.NET OR 860-448-3627
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Old 09-26-2006, 08:14 AM   #5 (permalink)
 
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Re: SCARED

~noting number for today's crank call list~
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Old 09-26-2006, 08:38 AM   #6 (permalink)
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Re: SCARED

You will need more a/c and electric, so figure another $15,000 to $20,000, to handle what you are proposing. Take a serious look at what you might be paying for the shark. This is not a true hp bed; its a combination hp/vhr. You can buy a true 360 hp for what you are paying for that shark. The shark is over priced. Like I said, forget the Shuttle. If you go ahead with this project, it seems, right up front, that the debt service will kill ya. And, be careful when looking at those break-even numbers provided by your bed company. They are sure to be sugar coated in order to make them look good. Those 1, 2, and 3 year projections are bogus. I been there and done that.

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Old 09-26-2006, 09:22 AM   #7 (permalink)
 
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Re: SCARED

Everybody is right on the money! The Shark is overpriced, at least the 850 Ergo looks classy not cheesy! The Shuttle is patheticly overpriced and underperforming. Your allocation seems wrong! PM me if you want some almost new repo stuff that will save you thousands or in the very least forget the Shark and Shuttle.
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Old 09-26-2006, 10:42 AM   #8 (permalink)
 
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Re: SCARED

If possible, do not finance your beds through a bed distributor, use a bank. Interest rates are normally a lot better.
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Old 09-26-2006, 11:47 AM   #9 (permalink)
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Re: SCARED

When we first opened we were very scared as well. We had gotten a small loan to put in some beds and just upadate and existing salon. However, we had very little left after that for bills and such. So we had to save and really skimp on things. But it'll get better, only a couple more months until it'll business will start picking up and then really really push your business and get those customers in there. And do not get discouraged when you dont' even break even for awhile, it took us almost a year to finally build up some funds. Good Luck
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Old 10-02-2006, 04:13 PM   #10 (permalink)
 
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Re: SCARED

Newbie..... If you can still back out ----->DO IT.........................will the last one to leave the tanning business please turn out the lights.
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