Need words of wisdom...

[brookechristina]

I've always wanted to have my own business and my husband and I are thinking about buying an existing tanning salon ( we live in Phoenix, Arizona). We plan on doing research for the next 6-7 months before we buy anything. My vision is to have a salon that is both a tanning salon and a boutique. ( an upscale look) My question is...is this an industry worth getting into. I've read some things that lead me to believe a lot of tanning salons fail. Would you say this is due to mismanagement or too many tanning salons and not enough tanners?

I would be leaving my $56k a year job ( that I hate) to focus on and run the business. What is everyone first opinion...would this be a mistake?

There is a salon currently listed for sale that if we were ready would an example of something we would buy...( in our price range)

The sales price is $45K. Gross Sales $85K with Net profit of $25K.
The salon is located by Arizona State University. The salon has 6 beds total - 5 lay down and 1 stand up... I don't unknown the brands.

The monthly rent is $2600 for 1675sq feet. The owner says a lot of her business is from drive buys due to location .

Would I be crazy to think that I could get this salon up to a net profit of $40K.

That is the magic number I need my salon to net is $40K ..

Any thoughts or opinions? THANK YOU! Thank You !!

[Brian Oshman]

Well brookechristina, if you decide to do that your name will be brokechristina.

[blondjuls]

Originally Posted by brookechristina

Would you say this is due to mismanagement or too many tanning salons and not enough tanners?

Both on top of the fact that only about 10% of the population tans indoors anyway. You have bad media press, dermaterrorists, and such that scare people away from the sun as well as indoor tanning.

You don't know the equipment mix, and that is very important...for us to give you a value of the place. Because ultimately that is all you are buying. And more than likely the value of the business is much lower than they think it is.

This is not an easy business, by any means. Though obviously some people are successful with it. The most important thing I would look at if I were you would be the growth potential. 5 beds and 1 stand up isn't going to make you a dime, and depending on what the equipment is, they may already be maxed out. So you need to know if the location can support the addition of more beds and possibly a higher mix of equipment such as big VHRs and HP and also if the area can support it. And by support for the location I mean, more ac (which is expensive to add after the fact), the proper electical requirements for each piece of equipment you add (also can be expensive to add after the fact, and REAL expensive if the location isn't primed for it), and the space requirements. You also need to have the extra funds to do all this, which will probably be harder to come by when you quit your 50k job to do this. Are there enough people to grow this place? Whats your competition? How close are they? What equipment mix do they have? Are they offering dirt cheap prices? Etc etc...


However, it will be easier for you to take a barely-treading water salon and turn it successful with the right ingredients than it will to start one and take it from the bottom up.


You should take a good look at this site. Many questions can be answered and advice given just by reading past threads and posts by other people.

Welcome to the site

[Ziti]

I suggest keeping your 'hated' job at 56k.

Or at least invest in somthing that triples your income. Sorry, just being honest.

[Tanning Queen]

If you buy it, dont pay more than $10k for it. Ditto to what everyone else says.

[brookechristina]

...or our other thought is to buy a place and I keep my job. I could reduce my current hours and dedicate my weekends and some nights to the salon. We would buy a salon that is already owner absent.

I'm not doing this to become rich ( goes without saying) but because I've always dreamed of having my own salon or boutique.

[Brian Oshman]

...then follow your dreams but proceed cautiously.

Read, read, read. Do searches on this site and see if this is what you really want.

[wreet2]

Oh boy.....here is the truth, every muscle in your body is gonna hurt from working your business as hard as it needs to worked to be profitable. This will probaly be one of the hardest jobs you will ever under take in your life, if you enjoy taking time off with your hubby 4get it.... he will be working with you just so you can save your payroll. And dont forget if you do turn a profit uncle sam will be there to take 50 percent of that and your customers will be demanding more new beds and services that dont come cheap these days.My wife and I opened 3 new salons in one year and yes we are successful but at the price of not seeing are children grow and always covering a employees shift.......trust me if you think you can own a salon and be absent you WILL FAIL...... Your employees will give away lotions and tans and not think twice about it as theft........ Good luck in whatever you do..... If you do enjoy your life style now.... keep working it.

[Parrot Head]

I think the keys to making this decision easier are these. 1st and formost: don't quit your day job. 2nd: is there enough electric and a/c so you can add more and bigger beds? You're not going to make much with 5 or 6 beds and you must have upgrades. 3rd: unless the 6 units that go with the business are brand new and include at least 3 upgrade (40 lamps or higher), you would be paying too much for that business. $15,000 would be more inline for an offer. But, not knowing the situation, it's hard to give you anymore words of wisdom.

[MR.TANLINES]

Run as far away as you can from that deal. Near a college and it only profits $25k?

[Cinderella]

Just depends.... you could always "flip" the salon and put some money into it and profit more than what they are now. Rent seems pretty high though imo.

[Glowtanning530]

^^^ You dont flip salons, actually you dont really "flip" businesses.
Homes, flip homes. Dont get into tanning hoping to flip.

[Cinderella]

i beg to differ, the salon we purchased had 3 poor quality beds, we purchased it dirt cheap, put tons of money into it and now running strong. Don't kid yourself when you think you can't flip a salon. Sometimes people start up businesses and realize they can't do it or what not, then you come along buy it for a great price and turn it into a money maker. Real simple really

[brownsuze]

The term "flip" means to buy and then resell quickly for a profit. What you're describing is not flipping.

[Glowtanning530]

Real simple... I dont think tanning would be my "flip" of choice. Think I wil stick to home foreclosures for that. I think demographics play a huge role. I would not buy a floundering salon in an area with a tanning salon on every corner.

[Tanning Queen]

Wrong, that isnt "flipping". Unless you bought it, brought it back to life and then sold it for more than you put into it. Now if you just revived a dying salon, all you did was get a deal. I did the same thing when I got my salon. Bought it for $10k and turned it into a VERY profitable salon.

[Cinderella]

I agree, there is a selling for profit into it when it comes to houses, I was using the term loosely. I guess you could resell if you wanted to after a short period of time, but thats obviously not what most people are in it to do right away.

[Cinderella]

My oh my, we are all quick to jump on and disagree... sheesh people, take a pill

[brookechristina]

She wants $40K for this :
__________________________________________________ __
1 solaris with 3 h/p facials, 3 sunstar wolff beds (20min.), 1 10min. Sundome stand-up and 1 15min. SunUp. Lots of space in the front to add a Boutique or Smoothie stand. Large room in the back to add another bed or use for massage therapy. Very cute place it just needs some marketing....

[Tanning Queen]

No. Too much $$. Not enough room for expansion it sounds like. Like I said, dont pay more than $10k for it. Especially since it is failing.