[sunsally]

At 22K by April 16, assuming that is accurate, it is on pace to make maybe 60K for the year.

Rent at $650/mo = 8K

Payroll at $7/hr = 36K (yes - you can work 75 hrs/week for free by yourself and not pay taxes etc, but as an INVESTMENT, assume $36K/year)

Electric = $6K at this level of activity (should be busier, and hence higher)

Bank fees = 2% of sales or about $1K at this pace

Advertising = if you actually want to get any business, plan on 5-10% of gross or about $3-6K

And so on.....

Upfront, if you can keep the equipment for now, plan on having to relamp everything (doesn't sound like it has been maintained) - probably $2-3K


The bottom line is the place is doing very poorly right now.......BUT........the rent is dirt cheap. SO -- if you really think you can turn it into something that is attracting customers AND you have some $$ to put into it AND you can afford to jump in and work the place without having to take a lot out of it for payroll for yourself AND they aren't trying to strap you into a long term deal AND they are going to carry the terms for the first year and basically let you make some money......

why not?


The key to this is the low rent, low upfront investment, and short lease term. However, if it DOES make $$, you want to make sure you can sign a new lease at similar low rent terms.

All that said -- you sound unprepared to take on this sort of a project in terms of knowing much about the industry. Make sure you are willing to LOSE anything and everything you put into it -- including 75 hrs/week of your time and energy over the next year along with your money. If you are going to try to build this into something it is going to take QUITE a bit of your effort, building up relationships with clients, reaching out to the community, getting the reputation turned around (it can't be good after all the changes and how it has been run) etc.