 Re: going to buy a distressed salon
Sure they GROSSED $80k but their expenses were $75k that year. That was back in 2005!!!!!!! 3 years later, the economy is worse, gas prices are sky high, people are watching their pennies, housing in most areas sucks, many forclosures, mtg rates are low now but people are getting the bump in interest from the ARM's they had, food prices keep rising,etc.
REmember, tanning is a luxury item. People will give up tanning in order to buy gas and feed their family. I know you dont want to buy a job that you dont make a freakin penny off of or lose money on. That isnt a good investment. Even the salon I got had a profit of $20,000 or so and they were on the decline each year. This salon has NEVER shown a real profit. I bought a salon that was in business for 10 years. I could see the potential from teh other tax returns from years past. What you showed really scares me. IT will take you a long time to just make back any investment you make, and there will be a TON of money you need to dump into it. Once that happens, you will finally make a profit. But by then, it will be time to dump money back in by changing beds, etc. Is this REALLY worht it? __________________  |