engfant

I don't think anyone's response can be taken as anything more than a suggestion. We have NO IDEA what beds they have. If they are sporting all SunGates then the price is gunna be a little higher then if the place is filled with Pellican. Also, if these people paid for everything in cash and they have no outstanding bills (yes this is possible) then of course they are taking home that much. The real question is what kind of baggage are YOU carrying? As in, how much of the store's revenue are you gunna have to dip into to satisfy your personal monthly expenses. If you plan on rolling in Benz and Lexus then you are gunna be out of business in a year. 96 Civic more your style? You should be fine.

$100K is NOT a lot for a place that has potential to bring in tripple that. We just don't have enough information to say either way. Don't forget to check the electric. A place like that will need 3 Phase DEFINITELY.

E-Tan

Thanks for all the feed back. I got 3 different P&L's from the owner now and all three have been changed?!? Most importantly I have received his Tax Info. It looks like for taxes he takes a loss every year, but on his own P&L is where it shows that this is not true. Is it normal for salons to take a loss on their taxes?

Steve Underhill

Sometimes buying an existing salon can be a good investment. A word of advice, when purchasing an existing salon you must take the same approach as opening a new salon. Establish a plan of operation. Identify all of the things that must be changed to make the salon successful and implement the changes right away. Salons that are for sale are typically unsuccessful or they would not be for sale. If you have identified the changes that are necessary to correct that trend and do so it can be a smart purchase. If you make the purchase and continue on the same path in a very short period of time you to will be looking for a way out.