does this salon investment sound good

jmiles · 03-08-2007, 09:28 PM

I have the oppurtuinity to invest in a tanning salon . The salon is brand new and will have 7 beds and a new fantasy tan spray set up. The operating expenses will be about 10k a month. They are offering me 25% of the biz for 60k. There are two other salons within a mile. Should I go for it or run from it????????

Neon Beach · 03-08-2007, 09:32 PM

Brand new, wanna sell? Take it from there and get back to us...............

pcstutsman · 03-08-2007, 09:33 PM

hm, yeah, why are they selling?

jmiles · 03-08-2007, 09:35 PM

It is my brother and his wife and they are running tight on money with the start up

pcstutsman · 03-08-2007, 09:44 PM

But if you buy it , you're only going to get 25% of it? imo I'd run. Do it 100% or nothing, especially in this business.

Neon Beach · 03-08-2007, 09:51 PM

This biz sucks, thank goodness I didn't get into it........... oh wait, crap!

Neon Beach · 03-08-2007, 09:52 PM

But seriously, what can you do or offer that is better than they are doing?

wreet2 · 03-08-2007, 10:15 PM

make a loan to them, use the equipt as collateral. Partnerships dont work!!!!

parrot head · 03-08-2007, 10:46 PM

A 25% say in a business that is not opened and is untested. Are you saying that salon has a capital investment of $240,000? With only seven beds and a spray booth where does the $10,000 per month operating expense come into play? Seems high. If I were looking at this investment, I'd ask myself what kind of a return (if any) on my investment could I expect. If you're entitled to 25% of the net profits, It could take years to see any profits. Just my opinion, but something to think about. Run away fast.

jmiles · 03-08-2007, 11:33 PM

10k covers
2,400 lease on space
2,000 lease on beds
1,000 interest on my brothers loans
600 utilities and maint.
4,000 salary for sister in law to manage and run place

03-08-2007, 09:28 PM	#1 (permalink)
jmiles Join Date: Mar 8 2007 Location: chicago Posts: 15 Rep Power: 0	does this salon investment sound good I have the oppurtuinity to invest in a tanning salon . The salon is brand new and will have 7 beds and a new fantasy tan spray set up. The operating expenses will be about 10k a month. They are offering me 25% of the biz for 60k. There are two other salons within a mile. Should I go for it or run from it????????

03-08-2007, 09:32 PM	#2 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: does this salon investment sound good Brand new, wanna sell? Take it from there and get back to us...............

03-08-2007, 09:33 PM	#3 (permalink)
pcstutsman I'm Banned Join Date: Jun 27 2004 Location: Indiana Age: 28 Posts: 8,293 Rep Power: 0	Re: does this salon investment sound good hm, yeah, why are they selling?

03-08-2007, 09:35 PM	#4 (permalink)
jmiles Join Date: Mar 8 2007 Location: chicago Posts: 15 Rep Power: 0	Re: does this salon investment sound good It is my brother and his wife and they are running tight on money with the start up

03-08-2007, 09:44 PM	#5 (permalink)
pcstutsman I'm Banned Join Date: Jun 27 2004 Location: Indiana Age: 28 Posts: 8,293 Rep Power: 0	Re: does this salon investment sound good But if you buy it , you're only going to get 25% of it? imo I'd run. Do it 100% or nothing, especially in this business.

03-08-2007, 09:51 PM	#6 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: does this salon investment sound good This biz sucks, thank goodness I didn't get into it........... oh wait, crap!

03-08-2007, 09:52 PM	#7 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: does this salon investment sound good But seriously, what can you do or offer that is better than they are doing?

03-08-2007, 10:46 PM	#9 (permalink)
parrot head Police Department Join Date: Jul 13 2004 Location: Menomonie, Wi. Age: 67 Posts: 1,369 Rep Power: 6	Re: does this salon investment sound good A 25% say in a business that is not opened and is untested. Are you saying that salon has a capital investment of $240,000? With only seven beds and a spray booth where does the $10,000 per month operating expense come into play? Seems high. If I were looking at this investment, I'd ask myself what kind of a return (if any) on my investment could I expect. If you're entitled to 25% of the net profits, It could take years to see any profits. Just my opinion, but something to think about. Run away fast.

03-08-2007, 11:33 PM	#10 (permalink)
jmiles Join Date: Mar 8 2007 Location: chicago Posts: 15 Rep Power: 0	Re: does this salon investment sound good 10k covers 2,400 lease on space 2,000 lease on beds 1,000 interest on my brothers loans 600 utilities and maint. 4,000 salary for sister in law to manage and run place

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