tanman2009

I have the opportunity to buy, what i think is a profitable salon

Here is what I know so far:

Established in 2006 (salon is beautiful and in great shape)

6 employees including owner. (One of the others, is my wife who would be running it day to day if we owned it. we also think it can be done with 5 if the shifts were arranged better.)

11 beds all Sunpro all built in 06 all with t-max controllers
6 Onyx 32 with one 400w face tanner
2 lumina A
1 Lumina C
1 Lumina E
1 Lumina V

over 3000 clients and growing (every one in town loves it there, but are not fond of the owner).
Smoothie bar with two blendtech blenders and counter high ice maker
Salon touch software with draw
Bunn coffee maker
Satellite radio in every room
A few small tables/chair and plants

Current owner owns building and would become landlord.

Don't know the cash flow or revenue yet, but my wife has worked there over two of the three yeas they've been open, so we know a lot of areas for improvement.

Any information will be very helpful

Din

can't help you until you talk revenue and how much they are asking.

You can't assume it's profiting if you haven't seen any numbers.

Until you get the numbers....everything else is useless.

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SOME PEOPLE ARE LIKE SLINKIES. NOT REALLY GOOD FOR ANYTHING, BUT THEY BRING A SMILE TO YOUR FACE WHEN PUSHED DOWN THE STAIRS

SolsticeTan

Hey there. I own a very upscale and successful salon, and once made the mistake of buying someone elses headache. I now have the experience of building from scratch, and know so much more for it. First rule.... people don' t get rid of things that make them money. I should have known better I have an M.B.A. in corporate finance. I ended up closing my salon and started fresh on my own. If you do still want to buy, here are some helpful hints...

1. Fire everyone. You want people to do things your way. And they know more than you at this point which makes it easy to steal.

2. Don't expect to make any money in the tanning industry unless this is your full time job.

3. Make sure the building is electrically up to code, and can handle the presence of the tanning salon. Just because it's running now, doesn' t mean it has the capacity to run if you are busy, or if something else goes into your strip. ( I put $70k in electrical upgrades into my building) And the last one I had I left because there were people stuck in beds from electrical overload.

4. Don't trust the books when buying. I can make it look like I make as little or as much as I want. You need to sit yourself outside and watch.

5. What is your lease, and is it transferable. What is added on to it, and what is the rent schedule.

6. What should you offer? As much as possible. And make sure it is CLEAN. I have 14 rooms, and there is still more I could add. I have hp, lp, mix in a price range from $7 to $35. I also have a hydration station, teeth whitening and airbrush tanning.

Please feel free to contact me... solsticetan@yahoo.com If I can help in anyway.

tanman2009

yup, thought so, but just don't have info yet. What should the revenue be for a solon this size?

Din

Starting from scratch would be the biggest mistake. If i was to do it all over again. (2 salons from scratch) I'd buy salons already established.

costs 2-3 times more to start from scratch

__________________

www.ChronosMarketing.com
1-844-CHRONOS

SOME PEOPLE ARE LIKE SLINKIES. NOT REALLY GOOD FOR ANYTHING, BUT THEY BRING A SMILE TO YOUR FACE WHEN PUSHED DOWN THE STAIRS

tanman2009

Like I said, my wife pretty much already runs the place. Here is the why she would be selling:The current owner is trying to live off this income (husband is laid off). I already have a solid job, so this would be income for my wife, so even if the cash flow was 20k a year it's more than she makes now and she'd get to make the schedule.

SolsticeTan

There's no "should be" and location is more important than size. The amount of money put into marketing has alot to do with it. So remember it's unrealistic to go into this without $30k for advertising and other start up costs. Your in Michigan so the seasons aren't as brutal to the industry as new york, but also don't look at one month... A salon can be upside down in August, and $20k plus in April. (usually not that extreme, but you get my point). Within 2 weeks of being open in my salon I was making money in summer months for 2 reasons:
1. Location: I am located across the street from a college, and the biggest gym in the area.
2. I advertised in everything i could get my hands on. radio stations, newpapers, flyers. I even went to local businesses and introduced myself.

But here is the second part. You couldn't pay me enough to sell it. Why would I? Unless I was terribly sick or moving it's a cash cow.

tanman2009

current owner (Not a tanner before she owned it) was board of it before her husband got laid off and talked about selling. Now that it's their only income, beside the rent of the building, she want's to get another job if my wife will manage salon for $10 an hour. I don't think that a good plan, but who am i to say it's not mine yet.

CrystalSS

"over 3000 clients and growing"

Active EFT or just that many have come through the door to date?

Gidget

Took the words right out of my mouth. No numbers no offer. You need to know every $ that comes and goes at that place.