succsessful in the tanning business?

[gravesmc]

We are planning to open our tanning business soon and have spent a ton of MONEY and time into this project. We were so excited to get things going, but of course like everyone else I am sure, NEVER realized how hard this was going to be. After reading so many posts on this site that are negative, my husband and I are depressed about this and have already had regrets. We are in this too far now to quit and it would be crazy now to not at least try and give it everything we have to keep this dream going. We could loose our home if we fail, since we put $100,000 of a home equity toward this business. Soes anyone have any succsessful stories out there! Please tell me something good about this business.

[ekc123]

since u put your home on the line, my advise would be during the busy months when u are making good money--put back as much as you can to help carry you through slow times which is pretty much 3-5 months of the year!!! Good Luck!!!

[neubie]

Don't have regrets now, just have nothing but positive energy and keep that energy moving in your salon.

[kookyguy]

Its the worst economy in 85 years. Why did you decide to open now?

We decided to open durring the bad economy, we understand economics and we are ready for it. We own the building and used cash for the buildout, equipment etc. We also have all the cash needed to carry us through the next decade should it come to that.

Having said that, we are doing great! We have a solid business plan and we know how to execute it.

I would not have risked my house on a new venture given the current economic climate. Best of luck to you in your new venture.

[sunsally]

A few thoughts:

1. If you have not already, start living TODAY as if your economic life is at "survival mode". That means cut ALL non-necessary expenses - home and the salon. Daily purchases of coffee or meals, look into cuts in your cable/phone bills etc. I'm not exaggerating -- no vacations, no clothing, no entertainment. Have friends over for "BYOB". If you are like many with a stocked frig/freezer/pantry -- try to "live" out of it for a few months, keep grocery purchases to a minimum. Make a game out of it. See HOW MUCH you can trim your current expenses - then dig deeper. Can you sell stuff you don't use (clothes, toys, etc) - see ebay, craigslist etc

2. If you have not already, explore back up financing options - NOW, not later when you might be desparate. These are not easy to find in tanning, but you have to look. Small business loans etc. If it gets desparate in times ahead there is always piling up credit card debt and/or taking "loans" from your credit card processing company backed by future receipts. These come at horrible rates - but are better than losing your house (maybe). Family? An outside investor?

3. If you have not already, consider a 2nd job of "outside income" for you and/or your spouse - nights/weekends/home based etc. Don't count on the salon for ANY of your personal expenses - and don't "skim just a little...."

4. As you are working toward opening - read every book you can get your hands on regarding retail selling - how to be a great sales person. You will HAVE to be able to sell to succeed!!

5. If you haven't already, put together a system to track EVERY revenue and EVERY expense. Put together a budget. USE it. Don't just be 'surprised' if you get into trouble - be proactive.

6. If you haven't already -- look at what you can still cut NOW. Examine EVERY item in your budget and ask "do we need it? Will it help us make money?". Consider used - beds, mirrors, reception desk, ........ There are LOTS of good options available -- don't buy everything new so it's "perfect" and think that will ensure success. Success will be easiest the lower your costs are.

7. If you haven't already.........are you marketing like MAD already? Have a sign up in the windows saying "coming soon!"? Put a sign on your car with salon info/website etc? Have cards printed out to pass out (free tanning,. etc)? Have you met local retailers and asked if you can do some co-advertising? Tradeoff with the florist, gym, pizza place, etc etc etc?

8. Do you have a business plan? Do you know exactly what you need to make to break even? Do you know how that's going to happen? Do you have a good feel for the "seasonality" of the business? Do you understand the importance of memberships and your pricing plan? As one note -- industry "averages" suggest that most salons make about 15% of their year's money in April - and another 15% in May. But only 3% in September. If that is true for your salon - figure out now what you will have to make in the first few months you are open to still be able to cover rent etc when you get to the fall.

9. Have you been to a tanning lotion show? Now is the time they are offered. Find a nearby distributor and find out when they are doing one - good hints on how to sell there (note - don't go CRAZY and start with thousands and thousands in inventory - start with a few of several products that you like in different price ranges. Add/subtract over time as you see what your customers seem to prefer and what you can sell).

10. Don't panic or be depressed. Take charge. It won't happen unless you MAKE it happen. If you approach it like a "dream" - you'll probably fail. This is a serious business investment - plain and simple. If you fail - you lose your business, your home and maybe your marriage (awfully tough on relationships). Talk about how you are going to make this work, what each of you are responsible for and be AGGRESSIVE! There ARE salons that are successful - even as start-ups - but it is NOT easy. IF you approach it like EVERYTHING YOU HAVE is riding on it - you will give it the attention and energy it needs to have a shot!

[aeltiger]

WOW, that just made ME feel better! And I'm not exactly a newbie anymore. Thanks!

[sunsally]

Biggest mistake new business owners make (any industry) - starting with not enough money available to get it up and running.


2nd biggest mistake - when the money comes in initially - thinking it will always be $$$ - and spending it! (remember - initially every single person that walks in the door has to buy a package and hopefully a lotion -- but then they will be 'riding' that package and lotion for a while. So they won't spend $70 every time!)


3nd biggest mistake - Not monitoring expenses. Just "spending" and worrying about the consequences later.


Owning your own business is NOT easy. It isn't like showing up at a job from 8-5, getting a paycheck direct deposited every two weeks, getting 2 weeks vacation, etc If the place doesn't make money today - YOU have to figure out how to pay the rent. If an employee calls off - YOU have to figure out how to cover the shift. If you ARE the employee and are sick - YOU have to work anyway.

To build something of value - be prepared to sacrifice financially, emotionally etc. Be ready to give up a social life, a home life, "fun" perks and purchase, etc.

BUT - if you DO sacrifice at first - and MAKE IT WORK --- THEN (and only then).....you can reap the "rewards" of being an entrepreneur.


The hard part is FIRST. And if you don't do the hard stuff -- you'll probably never get to the good stuff.


Truly -- start saving dimes and nickels today. Eat Ramen noodles. Watch tv movies instead of going out. Have friends over for a beer instead of meeting out.

You'll thank me later...........

[MissSunshine]

Well, since everyone on here seems to be full of such valuable information ... I will throw out there that I am also starting up a salon and looking for any words of wisdom anyone wants to throw my way :).

I am well aware of the failing economy, so I leased up a tanning salon that just went out of business (over spent on equipment, kept horrible hours, and was owner absent). I paid the entire first years rent up front. Equipment was left in the salon as collateral because the previous owner owed the landlord. I was able to get the rent paid until January 2012 and 5 beds (ultra bronze 818, Sundash 252, 2 Sunvision Zx30’s, and 1 Sunvision Elite 30) that were left along with neon signs, Tmax, and other items for $11,000.

I still need to get 3 beds to fill all the rooms and I am hoping to stay within a budget of $20,000 .... I have $9,000 left. Any suggestions, comments, tips, or tricks for what I can do to be successful would be appreciated. I am also trying to choose a software, so suggestions on what to choose are also welcomed. Thanks for your time!

	Buy Spray Tan Solution www.spraytan.com - Wholesale spray tan solution for tannings salons and mobile spray tan professionals. Lowest prices on premium Bronzz™ spray tan solution. Booth or airbrush tanning.

[sunsally]

Miss Sunshine -

You are starting out at a low cost - that helps!

On the other hand....your bed mix leaves a few things to be desired.... :-)


A few questions:

1. What size rooms do you have left to fill?

2. How many amps of electric are going to those rooms now?

3. How many amps of electric total do you have (e.g. is there room to add in bigger beds, that will draw more electric)

4. Have you tried tanning in your beds yet? It is possible (probable?) they may need to be relamped. Best case would be to meter them (can buy meters from Solarmeter there in Michigan - sometimes on sale on the boards too) but for now, in a pinch, tan in them and see if you get anything! If you are already tan - have some untanned friends be your guinea pigs. Use a sticker. Don't want to buy new lamps if you don't have to (probably $200-300 to lamp the small beds, $750-1000 for the stand-up, $1000 for the 818) but don't want to open with beds that don't tan and lose your customers right off the bat!

5. When you say you only want to spend $20K total and have spent $11K so far, are you keeping in mind..........

-relamping costs (see above)
-Insurance (maybe $1500 for that many units?)
-New signage (changing the name? putting out "new ownership" at least?)
-Deposits for utilities (they may require)
-Advertising (to let people know you are there)
-Lotion inventory (was there any left?)
-Software (minimum of $750 upfront or about $60/mo)
-Computer (assume there isn't one now?)



If the room size and electric allow, I'd keep the best 2 of the 3 base beds you have now (sell the worst off as a home unit or keep for parts down the road). I'd then get a laydown bed to match up with your stand up as Level 2 units. Then I'd buy a VHR for Level 3. I'd also add sunless - a used Mystic booth or HVLP hand spraying. Leave the last room empty (or keep the other Level 1 in it for now....but the more of those you have the harder to upgrade folks...) until you see how it goes and the demand.


By the way - the previous owner didn't overspend on equipment as their cause of going out of business - that equipment wouldn't have cost much more than you paid. It is a bad mix and too "low level" with the 3 30 lamp Sunvision beds.

Hours may have been an issue - that tells me they weren't busy and so decided to come and go figuring nobody would notice or care. Probably a sign of a bad location, too much competition and/or no advertising. You have a lot to overcome to turn around the reputation of a poorly run business.

You have to emphasize NEW OWNERSHIP, you have to show new INVESTMENT in the salon (new units, everything spotless clean and buffed, strong lamps, different options like sunless,....), you have to know how you can stand out from your competition (price? because you don't have superior equipment) and work VERY hard to make your investment worth it!

20K to start is probably not enough. You'll probably need to spend the original $11K plus another $9K on "start-up" (mentioned above) AND another $8-20K on equipment to really do it "right". But your lower costs WILL be a huge asset for you going forward!

[MissSunshine]

Sally, thank you for all the great tips!

While I did check the lamps and had to relamp only 2.. I didn't bother doing it yet because I wasn't entirely sure I would keep them. I think after hearing you out that I will ditch em lol! I did not think of having anyone check the meter for the other 3 rooms!

The previous owner took the "good" beds that they over spent on. One was an 09 Sun Angel 252, Sun Board XTT, and then she had one of those water massage beds (the room has a 220 though). I am definately hoping that because the 2 rooms had newer, higher output beds, that I would be able to get something decent in there! She also purchased the actual "business" from the previous owner (I looked at buying this location 3 years ago but the guy wanted $70,000 and there was nothing but basic beds/stand up). I guess she was the sucker who bought it. She definately paid to have the electric updated.. but I do really need to find out exactly what that place can power. Thank you so much for brining that to light ... I feel stupid for not having thought of that!

Aesthetically, the salon needs very little work. She paid money to have ceramic floors laid and the interior completely updated. It almost looks TOO good for the type of equipment that is in there currently. From asking the other people in the complex, the owner was never there and the salon was ran entirely by employees. I will be working all the hours between myself, my mom, and my sister. Her prices (which are still on the wall) were OUTRAGEOUS. $40 a month for the basic beds etc, $20 for a visit in the ultra bronze , $40 for the sun board.... etc.

Good/bad news is that there are amazing deals on used beds with so many salons going out. I was thinking of putting in a red light therapy bed.... have you heard anything positive about those? There is not a single one in a 50 mile radius ... and majority of the population in the area where I am is "middle aged" women between 35-44 (wow does that sound offensive now that I am approaching that age group!). Stastics says 24,000 with a 3 mile radius (population of 113,000+ within 3 miles over all). I was thinking I could give it a shot, and if it fails then I will just switch the lamps out. I haven't heard anything positive or negative about the red lights though.

I definately want to put in a mystic because the next closest one is nearly 10 miles. They have used ones for sale on craigslist for as low as $500. I am actually checking one out today. The guy says its still hooked up at his salon and I can test it before buying. Its an 03 model, with a full thing of solution , and he is asking $400 because he is being evicted and needs everything out of the salon. I am just concerned with how hard it is to install a mystic? Are Magic Tan units worth looking into? I seen a few of thos for sale also and I kinda like that look, but I am a little worried some people are after the "mystic" name.

I do wanna keep the prices on the low side... just because all the competition in the area has fairly reasonable prices. There is only one other salon within 5 miles and while they are bigger, they only offer basic beds and basic stand ups - thats it, no upgrades and its nothing but teenagers coming and going. I've lived in the area my whole life so I have pretty much been a member at every salon around .... and nobody in this area offers any type of variety - just basic beds, basic stand ups, and one place has a VHR that has been kickin since 99. I personally had to drive over 20 mintues to tan at a salon with different beds to choose from.

Again, thats for the suggestions! I appreciate it!


P.S.

Are Dr. Muller Orbit beds a good level 3? I had saved up $35,000 .... but was hoping to keep $15,000 in my bank account to cover any additional costs that may come up and to save my butt in case I dont make enough during the busy season to carry me through the slow season. I could techincally spend $19,000 and keep $5,000 in the bank. Seemed like a good idea at the time ... but I'll spend it if it will help make the place successful :)

	Buy Spray Tan Solution www.spraytan.com - Wholesale spray tan solution for tannings salons and mobile spray tan professionals. Lowest prices on premium Bronzz™ spray tan solution. Booth or airbrush tanning.