05-09-2011, 04:23 PM | #11 (permalink) |
I love Derf!! Join Date: Feb 10 2006 Location: Toronto, Canada
Posts: 931
Rep Power: 20 | Re: Financing a tanning salon, how can this be done? Nobody will loan you money with no personal guarantee or without you putting any money down. the only way to do it is fraudulently. Have someone lend you money and show that to the bank, they will fund the 50% difference, you pay back the guy all his money back with interest of course. That is the fraudulent way. You get caught, you go to jail. The proper way that everyone else does, is they go to the bank, they put up their house, apartment, money, co-signer....someone needs to put something on the line as a guarantee for you to be given money to open a start up business especially a tanning salon in this era we live in now. If someone came up to you and said, can i borrow $150,000 and said they won't guarantee anything if they don't pay you back. Will you give them the money? I didn't think so. The bank isn't that stupid either. But that's basically what you are asking them to do, by not putting anything on the line on your end. Why would the bank risk their money on you and your business idea, when you aren't risking any of your own money or your house or anything to show them that you are balls in on this and you will make it work. P.S. Don't forget your business plan. I know it's not what you wanted as an answer, but it's the harsh reality. Your best option is to buy an established tanning salon. I would never open a new salon from scratch again. So many salons to be had. Just because it's not for sale, doesn't mean it's not for sale. Walk into any tanning salon and tell them you are interested in buying, i guarantee you that they will be interested in selling.100%
__________________ 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 Last edited by Din; 05-09-2011 at 04:27 PM. |
05-09-2011, 05:37 PM | #12 (permalink) |
Join Date: Apr 14 2011
Posts: 598
Rep Power: 13 | Re: Financing a tanning salon, how can this be done? It will be hard pressed to find anyone that wants to loan you money on such a risky investment. have you created a break even? this may help you put this into perspective. You an see how much your lease for space, insurance, lease on equipment, loan payment, payroll, workers comp, taxes, etc will cost you and figure out if that is even doable. then take that and see if you can last during the lenghty slow season. It usually takes about 2 years for a business to break even, can you survive that with such a seasonal industry? I used to have a tanning salon, i wish people would have been brutally honest to me when I bought mine. I would never had done it and just did my sunless salon instead. Save me some money and years of stress |
05-09-2011, 08:36 PM | #13 (permalink) |
Join Date: May 6 2011 Location: Chicagoland, IL
Posts: 74
Rep Power: 0 | Re: Financing a tanning salon, how can this be done? Well I never said I was attempting to buy this with no money down. That was my fault I should have said that. I can probably come up with 15-20K of my own investment. Never thought of borrowing fraudulently and I don't think I would go that route anyway. I am hoping with the combination of my own capital, a business grant, and possibly a couple of investors I can make this happen. I know this industry is no longer an instant success and it will take time to start making profit but I honestly believe that this will be a profitable venture. |
05-10-2011, 02:35 PM | #14 (permalink) |
Join Date: Apr 21 2008 Location: rain forest
Posts: 36
Rep Power: 0 | Re: Financing a tanning salon, how can this be done? First of all Demographics is so very important. Make sure there is enough room for two salons, because you can never count on the other closing down. If you post the population and size of the other salon, we can give you an indication if there is room. If this land lord is negotiable, ask about a build out allowance! It never hurts to ask and can save you a ton of $$$. You can look to lease your equimpment which will save you some major up front $$. You can look to taking a line of credit out based on the equity in your home for the finances you need. Often you don't need to tell them what your using it for. word of advice, don't load the salon full of equipment right out the gate. Get just one or two peices of each level and add as needed, especially now going into the slow season. I've seen too many salons load their salon right from the get go. Two things almost always happens. #1 they can't make their payments in the begining, #2 they bring in the wrong things (always good to see where the demand is), and have no room to bring in anything new in a couple years to create renewed excitement. |
05-11-2011, 11:44 AM | #16 (permalink) |
Join Date: May 6 2011 Location: Chicagoland, IL
Posts: 74
Rep Power: 0 | Re: Financing a tanning salon, how can this be done? @celtic sun ... Thank you for your suggestions! I will be sure to run a demographic report and make sure the area has enough room to support two salons. The landlord is negotiable and already mentioned an Improvement allowance to help with the build out.I was considering leasing(maybe they offer options to buy) the beds to start off. This way I can offer newer and higher quality equpiment. I am going to look at all angles to try to get the financing aspect resolved. Starting off with less equipment is a good idea. I planned to start with 8 beds but maybe cut that back a couple till business gets going. The location will have room for expansion which is good! @blacksun ... Yea I do have a want and a dream of becoming a successful business owner and I found an amazing location for a tanning salon with minimal competition in the surrounding area. Ultimate Tan isn't even considered a reputable salon in this area. LA Tan has the market share in the Chicagoland. There is one in the town but location is horrible, I am just trying to place my salon in a better location and offer better customer service. So as sarcastic as your reply might have been ... I will take that good luck and will just have to add you to the list of people I will prove wrong (= |
05-11-2011, 03:14 PM | #17 (permalink) |
I'm Banned Join Date: Sep 6 2004
Posts: 13,921
Rep Power: 0 | Re: Financing a tanning salon, how can this be done? I am in the Chicago market and know the market well. Ultimate Tan is down to probably 1 store now I think. Ultimate Exposures owns around 50 stores most in Chicago a few in Ohio they are well run and market etc.. La Tan Owns around 200 salons most in the Chicago market well run market well also etc.. I know both owners well and do business with both them I have seen them buy out salons frequently. Are they the best run salons in the country? Sun Tan City probably has a bit of advantage on there salon from build out how they run it equipment and how well trained there staff is. I think they are running one of the best operations in the country now but they are not in this market so for them to eat you alive and spit you out it's not much of a problem for them. You MIGHT have 10k to 15k in liquid to come up with. That's great that MIGHT cover part of your electrical cost. How much liquid cash do you have to get you over until you are profitable and through your first slow season? None you used your chunk or part of your electrical you still need to buy beds, build out, marketing, product, computers, software, Insurance, accounting, attorney fees (reading your lease, have to form a corporation, cleaning supplies, office supplies the list goes on. You have ZERO track record in a proven system so why would any investor want to invest in you? You are not well funded. Your a start up so banks and leasing companies will shy away from you. 10k to 15k go buy a van repair dents, paint cars, do some carpet cleaning. You are not close to being well enough funded for this venture. You want to be better and offer a better customer experience? I can't tell you how many times I have heard this and up cleaning them out 6 months later or selling the store for them. Then there are those that refuse to listen but want to run there store there way but don't want any advice. Not trying to be rude but your not close to opening a successful salons. Now if you want to toss some beds in a space and make a half *** attempt at it you might be able to do so your still going to need more funds but maybe you can max out a bunch of credit cards. |
05-11-2011, 04:26 PM | #20 (permalink) |
Join Date: May 6 2011 Location: Chicagoland, IL
Posts: 74
Rep Power: 0 | Re: Financing a tanning salon, how can this be done? Matt I appreciate your thoughts but I tend to be more optimistic then most that are pessimistic and quick to tell me to clean carpets. This isn't "cleancarpettalk.com" is it? Anyone in the tanning industry should know that the majority of the tanning salon market share is not owned by franchises, individual owners out number franchise salons significantly. I don’t have figures but if you are that curious 'google' it. Believe me,I do know there is a big risk trying to get into this industry. I also know I am going to get a lot of "No" before I start getting "Yes" when it comes to financing. The fact of the matter is I have a great idea and concept with a great location for this salon. The pros on this venture out weigh the cons! Without risk there is no reward, anyone that owns a business knows this and so do I |
Bookmarks |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
Thread Tools | |
| |
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Georgia Salon For Sale-Possible Owner Financing | gatweetie | For Sale - FOR SALON OWNERS ONLY | 2 | 11-06-2006 11:38 AM |
Financing a New Salon | bodydynamics | General Tanning Industry Discussions | 14 | 10-26-2006 12:24 PM |
Financing | Tropical Rays | Tanning Salon Management | 6 | 06-28-2001 01:16 AM |
financing a tanning unit | nanna | General Tanning Industry Discussions | 3 | 04-01-2001 11:18 PM |