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Old 03-28-2013, 05:16 PM   #51 (permalink)
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Re: Going to take over salon?

Hire yourself and accountant, and demand all records and tax returns going back 3 years. I'm sure you can get the customer counts off the computer, right? Being you're not there every day, you need to know how many people are coming through the doors. If it's like my salon and many others, I'm sure the customer counts get less and less every year. This could be the very reason this salon is for sale. Rent: $4000--that is a bit more information. lol
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Old 03-28-2013, 05:28 PM   #52 (permalink)
 
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Re: Going to take over salon?

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Originally Posted by parrot head View Post
Hire yourself and accountant, and demand all records and tax returns going back 3 years. I'm sure you can get the customer counts off the computer, right? Being you're not there every day, you need to know how many people are coming through the doors. If it's like my salon and many others, I'm sure the customer counts get less and less every year. This could be the very reason this salon is for sale. Rent: $4000--that is a bit more information. lol
Yes rent is $4000 for this space, but it is paid off until Dec, 2013.
Great thing is, it's an expense I wouldn't need to worry about until 2014. Sadly, it still wouldn't even cover the current estimated losses.

Unfortunately, I cannot access anything on Helios to show figures of daily, monthly or annual sales.
Neither can I access the amount of clients, it's all been blocked.

Although, yes, I could do a manual count of clients, and yes, I could write down all the sales. But my estimations as of current, with the fact that I work here right now, are very accurate.

Sales can't be more than $150/day average. High of $400; Low of $0
Customer count daily average: 20ppl

It makes me very angry but I wish they would just show me the Helios stats so I could see how the salon has done the last few months, I would like to see an upward trend at least into the busy season, but other than manually, for now I can't see any of this on the system. I'm working on getting them to give me access. If they allow it, I will show all the stats here.
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Old 03-28-2013, 06:42 PM   #53 (permalink)
 
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Re: Going to take over salon?

Forget about the free rent until 2014. That fact does not change my view of your pending deal.
The salon size and equipment mix will NEVER make a viable business or even buy you a job with that expense nut every month. IMHO

Run away or loss your money.
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Old 03-29-2013, 08:27 PM   #54 (permalink)
 
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Re: Going to take over salon?

In all seriousness I have to ask...are you just trying to jerk everybody's chain or are you really this clueless? If you've got 40k you're dying to **** away I'll take it.
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Old 03-30-2013, 07:19 AM   #55 (permalink)
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Re: Going to take over salon?

You have to admit, it did make for some interesting reading material. How could anyone get serious, especially someone that works there, in buying a salon that makes $150 a day on it's best day. I've also had some zero sales days here, but I've had some $2000 days to compensate that. I think the sale fell through. lol
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Old 03-30-2013, 12:49 PM   #56 (permalink)
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Re: Going to take over salon?

$13k/month expenses with $150 and 20 customers/day average pretty much tells you all you need to know.

The costs are way, way, WAY too high for the revenue here.

Even with NO advertising - they have been there 2+ years. By sheer LUCK they should be able to make more than $4k/month. And you have only worked there 2 months - busy season. If they are seeing 20 ppl/day now, it could be 1-3 in September.

It wouldn't matter if the equipment was worth 100K and they were asking 50k. Unless you are planning on just selling off the equipment, you would be paying to sign up for a commitment that loses approx $9k/month or $100k/year.

It also doesn't matter that the rent is pre-paid for a few months. That just means that, on average, you would only lose $5k/month initially. So you would pay $40-50K, spend some more on licenses, insurance, signage,... and then lose another $35K by the time January hit - and then you would start losing $100K/year.


All that said - I also have to agree with BlackSun -- planning on working an estimated 40-50 hours --- whether behind the desk or out front - for a business that is deeply deeply in debt from the start -- says it will never get out of the hole. When you open the first location of a a new business that is cash poor to start...., you need to plan on working 70-80-100 hours/week initially --- in, out and around the business!! It is non-stop. It is weekends. It is evenings. It is holidays. It is every time a staff member quits or no shows. It is doubling up with them to train. It is monitoring while they work. It is going over the books. Paying bills. Ordering supplies. Updating the computer................AND trying to get out and build a "presence" in the community!

This is not the investment for you and probably not for anyone.
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Old 04-01-2013, 04:00 AM   #57 (permalink)
 
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Re: Going to take over salon?

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Originally Posted by sunsally View Post
$13k/month expenses with $150 and 20 customers/day average pretty much tells you all you need to know.

The costs are way, way, WAY too high for the revenue here.

Even with NO advertising - they have been there 2+ years. By sheer LUCK they should be able to make more than $4k/month. And you have only worked there 2 months - busy season. If they are seeing 20 ppl/day now, it could be 1-3 in September.

It wouldn't matter if the equipment was worth 100K and they were asking 50k. Unless you are planning on just selling off the equipment, you would be paying to sign up for a commitment that loses approx $9k/month or $100k/year.

It also doesn't matter that the rent is pre-paid for a few months. That just means that, on average, you would only lose $5k/month initially. So you would pay $40-50K, spend some more on licenses, insurance, signage,... and then lose another $35K by the time January hit - and then you would start losing $100K/year.


All that said - I also have to agree with BlackSun -- planning on working an estimated 40-50 hours --- whether behind the desk or out front - for a business that is deeply deeply in debt from the start -- says it will never get out of the hole. When you open the first location of a a new business that is cash poor to start...., you need to plan on working 70-80-100 hours/week initially --- in, out and around the business!! It is non-stop. It is weekends. It is evenings. It is holidays. It is every time a staff member quits or no shows. It is doubling up with them to train. It is monitoring while they work. It is going over the books. Paying bills. Ordering supplies. Updating the computer................AND trying to get out and build a "presence" in the community!

This is not the investment for you and probably not for anyone.
The BEST reply yet.
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Old 04-01-2013, 11:07 AM   #58 (permalink)
 
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Re: Going to take over salon?

This and all businesses depends on how bad you want this. As has been said before, you have to be willing to "do whatever it takes", which could mean sitting in an empty store in November, because you cannot afford to pay someone to do it for you. Change your own bulbs, clean your own beds, make people come to you at the store, when normally you go to them. If you are really in it to win it, "whatever it takes" is virtually unlimited. That is where many people lose their interest.
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Old 04-02-2013, 03:48 AM   #59 (permalink)
 
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Re: Going to take over salon?

WOW!!!

How did I miss this...out of the mouth of babes...this from the owner sums the fate of this business..
The owner told you:
"Simply we are selling tanning beds in a space with rent paid until Dec, 2013.
Forget what the business is making or not making, we are not selling you a successful business or a business at all.
If you see value in the beds and the lack of rent, and think you can take it off the ground, then buy it for 50K."
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