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Old 01-08-2014, 01:48 PM   #1 (permalink)
 
Join Date: Jan 8 2014
Posts: 3
Rep Power: 0 MaryK is on a distinguished road
Red face Thinking about purchasing a salon in CA.

Hi Guys,
I really need any advice I can get at this point. I've been reading through some of the threads and have started getting a good idea on what to look into before I purchase the salon.

So a little background on the salon to start is that it is already established and has no current competitors within 10-15 miles. All of the beds are paid for in full. I am also currently working at the salon so I can potentially get any info I may need while working. I approached the salon owner and asked if he would be interested in selling. He currently owns 2 tanning salons and is now living in a different state and trying to take on different business ventures.

I really would love to put all I have into this business, which also means all the time it will need since I will be a first time business owner and realize that this will take up all of my time.

The beds that are currently in the salon are:

*6 Royal Sun 32/Express beds
(The owner has made 2 of them into express beds and kept the other 4 as regular beds)

*2 Royal Sun 38/3 Combo Medium Pressure Beds

*1 Royal Sun UV Scan VT High Pressure Bed

*1 Sun Capsule Perfect Ten Stand Up Medium Pressure Bed

Some of these beds need a little help, like we need new acrylics for a few but we did recently get new bulbs for the Royal Sun 32/Express Beds.

All of these beds are Run by T-Max Series Timers Model-3A
We also currently use Helios as our program in the salon.

The owner has no problem giving me info on anything I want to know about the salon. I'm just not sure what my next step should be. I was thinking maybe getting his tax returns for the last couple of years and his books and sitting down with an accountant to see if this makes sense for me.
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Old 01-08-2014, 03:31 PM   #2 (permalink)
 
Join Date: Apr 21 2004
Location: Frisco, TX
Posts: 1,499
Rep Power: 14 Steve Underhill has a spectacular aura about Steve Underhill has a spectacular aura about Steve Underhill has a spectacular aura about
Re: Thinking about purchasing a salon in CA.

Quote:
Originally Posted by MaryK View Post
Hi Guys,
I really need any advice I can get at this point. I've been reading through some of the threads and have started getting a good idea on what to look into before I purchase the salon.

So a little background on the salon to start is that it is already established and has no current competitors within 10-15 miles. All of the beds are paid for in full. I am also currently working at the salon so I can potentially get any info I may need while working. I approached the salon owner and asked if he would be interested in selling. He currently owns 2 tanning salons and is now living in a different state and trying to take on different business ventures.

I really would love to put all I have into this business, which also means all the time it will need since I will be a first time business owner and realize that this will take up all of my time.

The beds that are currently in the salon are:

*6 Royal Sun 32/Express beds
(The owner has made 2 of them into express beds and kept the other 4 as regular beds)

*2 Royal Sun 38/3 Combo Medium Pressure Beds

*1 Royal Sun UV Scan VT High Pressure Bed

*1 Sun Capsule Perfect Ten Stand Up Medium Pressure Bed

Some of these beds need a little help, like we need new acrylics for a few but we did recently get new bulbs for the Royal Sun 32/Express Beds.

All of these beds are Run by T-Max Series Timers Model-3A
We also currently use Helios as our program in the salon.

The owner has no problem giving me info on anything I want to know about the salon. I'm just not sure what my next step should be. I was thinking maybe getting his tax returns for the last couple of years and his books and sitting down with an accountant to see if this makes sense for me.
Existing Salon Evaluation and Restructuring (Purchase of an Existing Salon)
If you are interested in purchasing an existing salon or you own a salon that is struggling, it is important to identify the current problems and what is required to create a successful salon in today’s competitive tanning industry. I can assist you with the restructuring of your salon and create a profitable business. It is also important to have assistance when establishing the purchase value and negotiating the purchase price of an existing salon.
Purchasing an Existing Salon Can Be a Good Investment

A quicker less expensive way of getting into the indoor tanning industry is to purchase an existing salon. However you must be cautious because there are many potential pit falls.

Some salons that are for sale are profitable and ready for a new owner with minimal changes required. A large percentage of all tanning salons are struggling or failing, typically if a salon is for sale it falls into this category. This alarming statistic is not due to a week industry, instead it is a result of new salon owners not being properly educated and prepared for success.

When evaluating the purchase of an existing salon you must approach it as though you are opening a new salon from the ground up. You must first determine the potential of the salon by evaluating the demographics. If the demographics are good you can now evaluate the salon further. Always look at the parking situation and how easy it is to access the location. You should determine all of the changes that must be made to create a successful salon. To do this you must again have the information and knowledge required to be successful. You must determine the cost associated with making these changes.

You must determine the value of the salon by asking a number of very important questions. Net profit of the salon, equipment value or a combination of both will determine the value.

Very old salons can be a problem because the rooms are typically too small. With proper evaluation, a proven plan for success that the previous owner did not have and the proper funding to make the appropriate changes will allow you to own and operate a successful salon saving a great deal of money over opening a new salon from the ground up. Major mistakes made by people that purchase failing salons: Paying more than the salon is worth, not being any more qualified to operate a successful salon than the previous owner, not identifying or making the changes necessary to create a successful salon, not being properly funded. It is just as easy to succeed as it is to fail, knowledge is power.

I have a questionnaire that I can send you that will help in not only evaluating the salon to determine purchase value but also what should be done to make the salon successful.
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steve@smuconsulting.com
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Old 01-08-2014, 03:44 PM   #3 (permalink)
 
Join Date: Jan 8 2014
Posts: 3
Rep Power: 0 MaryK is on a distinguished road
Re: Thinking about purchasing a salon in CA.

Yes the questionnaire would be great and any help and advice would also appreciated!
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Old 01-08-2014, 03:46 PM   #4 (permalink)
 
Join Date: Apr 21 2004
Location: Frisco, TX
Posts: 1,499
Rep Power: 14 Steve Underhill has a spectacular aura about Steve Underhill has a spectacular aura about Steve Underhill has a spectacular aura about
Re: Thinking about purchasing a salon in CA.

Quote:
Originally Posted by MaryK View Post
Hi Guys,
I really need any advice I can get at this point. I've been reading through some of the threads and have started getting a good idea on what to look into before I purchase the salon.

So a little background on the salon to start is that it is already established and has no current competitors within 10-15 miles. All of the beds are paid for in full. I am also currently working at the salon so I can potentially get any info I may need while working. I approached the salon owner and asked if he would be interested in selling. He currently owns 2 tanning salons and is now living in a different state and trying to take on different business ventures.

I really would love to put all I have into this business, which also means all the time it will need since I will be a first time business owner and realize that this will take up all of my time.

The beds that are currently in the salon are:

*6 Royal Sun 32/Express beds
(The owner has made 2 of them into express beds and kept the other 4 as regular beds)

*2 Royal Sun 38/3 Combo Medium Pressure Beds

*1 Royal Sun UV Scan VT High Pressure Bed

*1 Sun Capsule Perfect Ten Stand Up Medium Pressure Bed

Some of these beds need a little help, like we need new acrylics for a few but we did recently get new bulbs for the Royal Sun 32/Express Beds.

All of these beds are Run by T-Max Series Timers Model-3A
We also currently use Helios as our program in the salon.

The owner has no problem giving me info on anything I want to know about the salon. I'm just not sure what my next step should be. I was thinking maybe getting his tax returns for the last couple of years and his books and sitting down with an accountant to see if this makes sense for me.
Mary just remember that the money you must invest in restructuring this salon to insure it is successful in addition to the purchase price will be your total investment.

Typically a salon operator always over values their salon. establishing the real value is easy when you get the right information.
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steve@smuconsulting.com
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