Getting cold feet!!!!

TanDeSoleil · 09-30-2005, 05:06 PM

I live in a gated area of 4800. Five bed competition is about 7 mi away, and Planet Beach is about 20 mi away. I am looking at a 1000 sq ft that is costing me about 35,000 to finish out. My lease on equipment is 35,000( 2 level I and 1 Level II-Puretans. I am also putting in 2 hair booths($125wk) and a nail booth($70wk)The salon is starting to cost me a lot and dealing with stylists and manicurest can be crazy and unreliable. My rent is going to run 950.00 mo. I borrowed all the money. Am I crazy to think I can make it on 3 beds to start???

movieking · 09-30-2005, 05:17 PM

I don't see how 3 beds can pay the bills even with hair and nail rental income. Are you saying that those 3 beds are going to cost you 35k? I'm accustomed to seeing 3 beds in hair salons who use them for incremental income, not the main source of income. Based on what you are saying about the stylists and manicurest I would suggest that you not count on recieving that extra income when you calculate what it will take to break even.

Neon Beach · 09-30-2005, 05:43 PM

Costs don't seem to be too wild. But Movieking is right when he states hari salon use 3 beds to make there vacation money. Your rental for the stylists seems a bit low compared to here.......... Are you renting them space plus a percentage?

TanDeSoleil · 09-30-2005, 06:13 PM

3 beds for 21,000. The salon equipment is costing me the rest. Our gated community is in a country about 20 miles from a larger town. We have a small strip center in this community and that is why I thought of the salon. As a tanner myself, I don't tan bc I don't want to drive to town. We are a country club so there are some higher end homes, however, we are dealing with smalltown mentality. My husband has a great job and this was going to be a supplemental income. What I don't want is to LOSE money.

Neon Beach · 09-30-2005, 06:20 PM

IMO, since it's not going to be a main income source, go for it. Just make sure you have all your info correct and make sure you can survive the infamous slow season..... Good luck!

movieking · 09-30-2005, 06:27 PM

It seems to me I heard the average salon grosses around $18,000 (don't quote me)per bed per year. Can you pay your rent, labor, loan/lease payments, insurance, utilities, lotions, bulb/bed repair reserves and all of the other misc. expenses with $54,000 and still make a profit?

Neon Beach · 09-30-2005, 06:41 PM

Pay the bills, take a wage or "draw" and stay in business is good for awhile, profit is the goal for sure.

HBT6872 · 09-30-2005, 07:35 PM

If you are looking for something to do, then go for it. If you are looking at it from Time vs. Return....don't do it.

TanDeSoleil · 09-30-2005, 07:56 PM

I guess I am looking at the big picture. I'm investing about 80,000 for maybe 1,000 a month? Is if just me, or does that seem stupid?

HBT6872 · 09-30-2005, 08:15 PM

"If" you made 12k a year net that is a 15% cash on cash return. Can you do better in another investment with less risk is the question. What happens if you loose your entire investment? If you do not make money for two years and you sell it for a loss, what happens?

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09-30-2005, 05:06 PM	#1 (permalink)
TanDeSoleil Join Date: Sep 25 2005 Posts: 67 Rep Power: 0	I live in a gated area of 4800. Five bed competition is about 7 mi away, and Planet Beach is about 20 mi away. I am looking at a 1000 sq ft that is costing me about 35,000 to finish out. My lease on equipment is 35,000( 2 level I and 1 Level II-Puretans. I am also putting in 2 hair booths($125wk) and a nail booth($70wk)The salon is starting to cost me a lot and dealing with stylists and manicurest can be crazy and unreliable. My rent is going to run 950.00 mo. I borrowed all the money. Am I crazy to think I can make it on 3 beds to start???

09-30-2005, 05:43 PM	#3 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Costs don't seem to be too wild. But Movieking is right when he states hari salon use 3 beds to make there vacation money. Your rental for the stylists seems a bit low compared to here.......... Are you renting them space plus a percentage?

09-30-2005, 06:41 PM	#7 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Pay the bills, take a wage or "draw" and stay in business is good for awhile, profit is the goal for sure.

09-30-2005, 07:35 PM	#8 (permalink)
HBT6872 Join Date: Sep 22 2005 Location: Ocean Age: 38 Posts: 172 Rep Power: 4	If you are looking for something to do, then go for it. If you are looking at it from Time vs. Return....don't do it.

09-30-2005, 07:56 PM	#9 (permalink)
TanDeSoleil Join Date: Sep 25 2005 Posts: 67 Rep Power: 0	I guess I am looking at the big picture. I'm investing about 80,000 for maybe 1,000 a month? Is if just me, or does that seem stupid?

09-30-2005, 08:15 PM	#10 (permalink)
HBT6872 Join Date: Sep 22 2005 Location: Ocean Age: 38 Posts: 172 Rep Power: 4	"If" you made 12k a year net that is a 15% cash on cash return. Can you do better in another investment with less risk is the question. What happens if you loose your entire investment? If you do not make money for two years and you sell it for a loss, what happens?

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