Sergio.1

I am glad to find this website/forum, I have been through most of the sub forums and found great information.

A little background, I'm in my early 20's with a degree in Economics/finance. An investor and I are planning on opening a tanning salon directly beside a MAJOR gym which will be opening within the next year in a new development. The investor and I bring forward a strong sales and marketing knowledge with a good amount of current cash-flow.

I am posting here because I want to ask the knowledgeable members on this forum, am I overlooking the amount of time and capital I need to put in this?

I am aware the 1st year should be considered a write off, but I put all the numbers together and got a total of about $7000-$10,000 in operating expenses (rent for space and lease for beds, electric, hydro, and employee expenses)

Am I overlooking anything? I plan to bring in a good friend of mine who was a manager at a large tanning chain for her to run the show since I have a day-time job (mortgage broker)

The demographics of the area has a high income (60-80 per year)
Mostly white.

With a location such as the one I have, how difficult will it be to make over 7-10 thousand per month? Given that the city here gives us about 9 months of cloudy/rainy weather, How much should a tanning location such as mine make? Feel free to throw in any constructive criticism, Thanks :)

tanu01

Most Gyms today put in tanning beds and include it in their membership.

Sergio.1

I am aware. But gym tanning beds/memberships are overall a bad experience. My gym I go to has a tanning bed which is horrible and most people go across the street to get a better overall tanning experience (towels, clean beds, etc)

BuyersGroup

Well this is a big one. Any gym worth ten cents is going to have an exclusive so you will not be able to open in the same center.

Second you have to look at demographics in area to determine if your salon can survive with another salon across the street and "x" number of salons in nearby areas.

Having cash means nothing. I have spent lots of bad money over the past 30 years. Having it didn't help me pick the correct location.

It's all about location, demos and competition. Your realtor can likely generate the reports you need. You need a detailed demographic profile for a 1,2,3 mile and if possible have them do a polygon (which cuts off any unavailable areas like other side of river or major highway etc...)

Once you have a clear demographic profile of women of the tanning demographic ages 18-50, competitor analysis etc... come back with some numbers and post them here. Also I would be absolutely shocked if the fitness club doesn't have an exclusive on tanning in that center. Plus pulling from a company like that is going to be tough as they are going to spend 1.5 - 2 million opening and probably will spend enough to crush everything in their path to make that note.

Not trying to offend just shooting some obvious stuff out there

Black Sun

Most major gyms (chains) and even the better private owned gyms seem to have a good grip on tanning where I am..I would not brush them off as 'horrible'.....the ones around me have top equipment beds from KBL/UWE. The 'chains' are well verse in the tanning end...don't take them lightly..That would be your first mistake...they can, and are, a threat.