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Old 01-18-2006, 02:37 PM   #1 (permalink)
 
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Uneasy about opening a new Salon

Hi everyone,

I am looking to open a new salon in a booming new community, but have some reservations and am looking for advice. I just moved to a new community outside Tucson, Az that has doubled its size in the last 2 years, the current approx population is 7k. A new shopping center has been open for about 3 months now and seems to have a good amount of traffic. It is about a mile from a freeway exit, but not visable from the freeway. Also, accessable from a main rd that people take to and from the freeway. There are also other complimentary businesses in the center, a nail salon, hair salon, Curves, and dance studio. Also, there is NOTHING, not even a grocery store, but this shopping center in the community for about 15min drive. Our closest competition is a 20min drive. The center has two available spaces, one ~1700 sq ft. floor level - rent: 4500/mo, the other also floor level ~ 1000 sq ft. on the corner - rent: 2400/mo. I have also thought of adding two rooms for massage and an esthetician. My concerns are as follows:

- Would we be able to generate enough income to support the expenses?
- Which space would be better for a new salon?
- Should we stick with just tanning or offer other services (i.e. massage/skin care)?
- How many beds should we start with?
- I was surprised to find people in AZ tan, I guess I'm a bit naive just moving from Ca, does the tanning slow down in the summer in sunny states as such?
- Does this sound like a good idea, or am I jumping in over my head and should wait until the community grows a bit?

Any and all advice is appreciated!! Thanks!
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Old 01-18-2006, 03:09 PM   #2 (permalink)
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Re: Uneasy about opening a new Salon

I am sure you have a lot of questions. Do as much research as you can before making any decisions. Definately look into the demographics of the town.
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Old 01-18-2006, 07:06 PM   #3 (permalink)
 
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Re: Uneasy about opening a new Salon

I appreciate your input. I have much research about the area, however, being a brand new community, census/demographic studies are not up to date.

Any other advice/input would be appreciated!! Thanks!! :)
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Old 01-18-2006, 07:46 PM   #4 (permalink)
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Re: Uneasy about opening a new Salon

We were all uneasy when it was us opening I'm sure. Do as much research as possible and Good Luck. :)
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Old 01-20-2006, 12:25 PM   #5 (permalink)
 
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Re: Uneasy about opening a new Salon

Sometimes opening a business in an area that is growing in the hopes it will do well some day is not the best idea. You can starve to death waiting for the growth. A small salon can survive in a small area but the small population will limit current potential.
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Old 01-20-2006, 01:09 PM   #6 (permalink)
 
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Re: Uneasy about opening a new Salon

Your rent equals almost $32/ft/yr. That seems a little steep but then, I don't know that area. The big question would be, could you generate enough sales to cover your cost and make a profit? Look at what your closest comp is charging to at least get in the ball park. The next question I'd have is what percentage of those 7,000 people do you think will tan?
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