sunsally

Here I am!


A few thoughts........


As a GC, you understand that permitting, signage, negotiating leases and the like always take more time than you think. In most areas, most situations, I would estimate that if you have found the perfect location TODAY - the earliest you will be open is Feb 1st and could well run later. Just based on my experience with these sorts of things.

No nearby salons is a good thing. Now investigate "why". Is the population there? Are they mostly white, mostly females ages 18-38, not TOO rich and not TOO educated? Go hang outside the next closest salons in either direction for a day each - (or pay someone to do this for you) - count the number of tanners that walk in throughout the day so you can estimate demand.

Rent - critical. Make sure you aren't overpaying for what tanning will pay back. Generally $12 s.f. or less is good. The more you pay over that, the more everything else has to really be in line to make it work.

2800 s.f. - depends on the dimensions. 20' wide and 40' wide are the most efficient for numbers of beds you can fit. In 2800 s.f., well layed out, you should be able to fit up 18-20 rooms, which might be used for tanning and/or other ancillary services (massage, spray tanning , body wraps, teeth whitening,...)

Equipment mix - critical. Get it wrong and you fail.

Budget - Plan on 3K/mo in payroll minimum. Rent. $2K/mo utilities. $1-2K/mo advertising. Your lease/loan payback (even if from yourself or your investor). Insurance, lamp replacement ($300-3000/unit), COGS (products),... Upfront cost including permits, signage, pre-opening advertising, ...

Working capital. Most small businesses fail in the first 2 years. Tanning is no different. Have a minimum of 6-12 months expenses in reserve - e.g. if you had to pay every bill, depending on when you open. For the project you are describing, I'd have no less than $100K in liquid assets remaining when the buildout and equipment purchases were done.


Overall - my best advice is to remind you that first and foremost, think of this as opening a BUSINESS. Be ready to be an expert (or hire experts) in advertising/marketing, employee staffing and retention, accounting/finance, etc.

Next, it is RETAIL SALES. Be prepared to hire, train and retain the best sales people possible - the kind that could sell anything.

Finally - it is tanning. The buildout and actually "tanning" part is the least difficult. Most new owners get too hung up here - to the detriment of the first two parts. Those that do - often fail.

Hope that helps some. Feel free to call if you want to discuss your project in further detail - I've set up several hundred salons over the years and can "short cut" the process for you fairly quickly.

missmojorising

Dear SunSally,

You are so nice.

luv, Babe Ruthless

__________________
Step In To The Light, While Loving Derf.

www.simplytantexas.com

kookyguy

Mojo is hot when she flips her hair!

missmojorising

Hiya Kook! XOXOX

__________________
Step In To The Light, While Loving Derf.

www.simplytantexas.com

kookyguy

heya Mojo XOXOXO

missmojorising

how's it goin' kook? what's your "estimate' for opening a new salon these days? what's the minimum amount you would have available to start a venture like this?

__________________
Step In To The Light, While Loving Derf.

www.simplytantexas.com

mr belvedere

Grip it and rip it! ~What's the worst that could happen?~

__________________
"A dusty bible leads to a dirty life ..." -Synonymous

kookyguy

Well right now the economy is the worse we have seen in 70 years. Tanning has been around about 30 years.

There are industries that do well in an economic recession, tanning is one of them. People tend to nest when cash is tight, they can't go to Vegas but they can go to the movies or go tan.

Health clubs, tanning salons, movie ticket sales and womens make up sales all tend to go up durring tough times. (assuming you have adapted your marketing to the bad econ)

The question is...is there a point where the economy will get so bad that all these industries start to drop like a rock?

Can't go to Vegas can go tan...becomes can't go tan, must buy food. We have never seen numbers this bad, but they could be right around the corner.

Having said all that, I think if anyone wanted to open a new salon at this time they should build for 10-14 rooms but only fill 6-8 rooms.

Do you need HP right now when cash is tight and getting tighter. If you feel you must have hp do you still need a big vhr to open with? he said there were no other salons near by, so I think he could open with less equipment and do fine.

I would look at opening with less equipment and plan on taking no cash from the salon for a year or two.

If he saves on buildout as he is a GC and if he saves on equipment by going smaller to open, he might have a shot at making it.

of course using the well known South Park economic rule...everything costs Tree Fity!

movieking

The lease space is just too expensive for someone starting out. He said the landlord was asking $33 per foot and I assume in a plaza with 3500 parking spaces the cam charge will be an additional $5-$7. That brings the rent to around $9000 per month.

How many veteran salon owners can take that on? I don't see someone new to the industry being able to do the numbers needed to support that lease for at least 2 years. I know it's possible but the odds are severely stacked against a person just stating out in an industry that is new to them.

kookyguy

If the rent is 9k I would no do that thing!

Peachfish!