Crosey

Can anyone tell me if I am making a huge mistake buying a salon in August. I also don't know if the price is good or not. The salon has no computer, not sure how many clients, (shoebox packed with verticle cards), 1 bed and 4 booths (1 with lease balance} how can I tell if it's a good deal

mr belvedere

Slower season is coming soon (sept-feb). Depending on your locale, 4 stand-ups might be ok, but not in most markets. If there's room for expansion, and your buying the business for nothing, and you have fairly deep pockets or three jobs, it could be a good deal for you. Good luck.

candie

How old are the beds, what is you client base, what is the location, and what is there traffic? Anotherr big question is whay are they selling? If it sounds to good to be true then it probably is. But if the price is right and you are willing to make updates and improvements then it may be a good time to buy and do your remodeling during the slow season for a grand opening during the rush. Its a big decision to buy a business and its one only you can make. Good luck!

Crosey

Salon has been there 12 yrs, but current owner has had for 1 1/2 yrs, divorcing, 1 brand new bed, 2 moderate, and 2 look rough. same plaza as fitness center and i'm in the North East. How do I determine what the value is?

Crosey

I don't need to take a paycheck. I'm worried that I won't cover the expenses during the slow season if I buy now. Will I be able to afford a part timer as I have a 30hr/wk job.

Moses

Look at bank deposits and tax returns. If they won't show you walk quickly to your car and drive away.

sunsally

Lots of thread on this sort of thing - search around and you'll find plenty of advice. "Worth" depends on what you're getting and what it would cost to replicate it on your own if that was really what you wanted to do. Smaller salons have less "potential" to make money (just have so many sessions you can run a day!), so if you're having to pay someone else to run it, may be more of a "break-even" than any great investment. But quitting your job to run it yourself might just keep you where you are already now too. Do you want to go from working 30 hrs/week to 70? Or keep your 30 hr/wk job, hire someone else to manage this "investment" of yours and hope they are able to make/keep it profitable? How much money do you want to spend for a business that you'll then turn over to a $7/hr employee to run?

No computer (means no real verifiable revenues), one 1 new bed (still with a lease), mostly stand-ups (generally less popular, although more common on the East coast) ---- I'd guess maybe 10K tops and even that could be a stretch.

Crosey

I have seen the Sched C and in nets a 400.00 loss in 04. Should i worry

sunsally

Depends on how much they want you to pay to lose money.

Crosey

They only took it over in April 04 though