Smileysnob

I am looking to purchase an existing salon. The price we are at right now is 25K and I haven’t seen the books yet. I know the owner before them grossed 100K and had about 60K in bills, ect. She also had employees and I do not plan on having more than 2 part time employees. The owners now have only owned the salon for a month and realized they can not do it with the other business they have and they are way too busy to put the attention in the salon. There are 2000 clients, 10 beds (3 levels), 1 stand up, face tanner, spray tan room (airbrush) and a room for me to add an additional service. The rent is $1800 a month. I am looking at there books tomorrow night to see what the past month did. August is generally not a really busy tanning month, so I don’t expect it to be all that high, but it will give me an idea of what they did in the month. I want to incorporate something that will make money on the off season as well as the busy season if I decide to purchase. I am also going to keep my current job part time until I get up and on my feet so I have additional income as well.

Any suggestions anyone else can think of for me to look at? Is 25K worth it? I got her down a little bit and they are really interested in me taking it over b/c I have ran a salon for almost 5 years and am very knowledgeable in the business and the airbrush tanning and body wrap business. The salon is in good shape, very cute on a high traffic road in a strip mall that is very busy. 2 local competitors that are around, but they get clients from them b/c they do not have beds and a lot of clients seem to want beds and not the stand ups.

What do you think?

caribbean tan man

make sure you got adequate electric and ac. 25k suggests it need work, will u have the money to invest. How old are those beds?

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eyecandytanning

Does the rent include CAM's?

Remember you will need a few thousand in the bank to pay for things when it is slow, buy lotions, possibly relamp beds (often owners selling say there are fewer hours on lamps than there are), replace acrylics (obviously not all at once, but just in case you need to). You will also most likely want to update decor to your taste.

There were so many little things that added up big time when I bought my salon...the savings account did not last as long as I anticipated.:)

Smileysnob

The salon does not need much work. It is little things I want to do that I can do over the course of time. I plan on getting a loan for over the amount I am purchasing for so I have money to start a business account and have it there. I also want to start a service in the spare room for when its slow... any suggestions? Body wraps? I used to do them from a company called Set-me-free and they were really good. you make a lot on them!

I actually got them down on price and it doesnt need much work. its making decent money from what I have heard, but I can always build that since I work in marketing and promotions now. but I am looking at the books tonight...