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Old 4th May 2008, 10:50 PM   #70 (permalink)
Tanning Queen
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Default Re: going to buy a distressed salon

Come up with REAL demographics. Not just what you see around the neighborhood. How many white people? How many age 24-35? How many women? Median income? How many cars drive by the center on a daily basis? Etc.

I know he cant raise there rent or change the terms but that doenst mean he will abide by the contract. He can "constructively evict" you by forcing you out. Very simple, he can screw things up royally for you and that is somethign you dont want. Not when you invest so much into a business.

Now, anyone that has beds will be your competition. Obviously the other salon is doing ok since they have been there 10 years. You wont take their all of their clients, but will get some. BUT, if they have deep pockets, they may reinvest and blow your failing salon away. Consider them when you design your salon.

The main thing is, do the demographics support a salon in the area?

And just to comment on something you said earlier. THis is NOT a get rich quick industry nor is it at all easy. Big money is not something that is seen very often in this industry. There are many successful salons out there but really successful ones are far and few between. This is a strange industry that has 3 mos of busy season and the rest you are struggling to get people in. Clients wont tan if it is cold out, if it rains, etc. Summer? They go to the beach or the lake. Every weekend you are dead. Pray for rainy summers. If it doesnt warm up in by april? You are screwed. You only have may and june to make the money.

I remember one year it warmed up finally by May. Still died off by mid June. Normally season starts in Feb. That was a tough year of dipping into savings to survive.

Ever think about a different industry? There are many other stores out there that produce a more steady income and arent fighting the media every day that theya re gonna kill everyone. LOL!
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