movieking

So if I want to sell one of my salons I would only be doing so because it is losing money? There are many reasons to sell of which only one of them is due it losing money.

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parrot head

When looking at those tax returns and using the two to two and a half net be sure to add back in the depreciation and any salary taken by the owners.

Steve Underhill

If a salon is making a solid profit and sales are going up every year as opposed to sales going down every year it is not likely that that salon would be for sale. My point is that numbers don't lie. look at tax returns they will tell you the story of the success of the salon. If it is a successful salon the net profit holds steady or increases each year. If it is going down each year it is failing. If your salon is not failing and you want to sell, your paper will reflect that and the salon has much greater value. You just can't determine the value of a salon based on what the owner says. It must be supported with documentation.

Steve Underhill

If an owner is working the salon and getting paid that is cost of operation, that should not be added back in. You are not trying to buy a job. You don't have to by a salon in order to get a job at one.

thelightguy

what if the gross and profit is steady, but the customer counts are down 15% month after month for two years......still about 150 to 175 per day in the busy months

Steve Underhill

If your price structure is good, the number of tanners is not as important as gross. Increasing tanners will increase sales however less tanners does not always create less gross.