what are some things to look for when buying an existing tanning salon?
Posted by Sonni in: buy a tanning salon
I would look at their financials. Are they making a profit? Have sales declined recently (if so, customers may be upset and you may have to deal with negative feelings or new competition may have entered the market). How many long-term clients are there? How many are undercontract – thus captive clients? Also see if it has been fined or cited, thats important reputation wise as well as regulation wise. Check out the condition of the equipment. Also, look at the lease – is it about to expire and go up? Those are few things I woudl look at first. Also, maybe yuo wil want to enlist the help of a business appraiser/broker in your area, they can help you ask the right quetions and appropriately assess the value. Good luck!
The statistics don't lie!
Most new business fail within a year. Tanning salons are no exception. The number one reason for this failure is "lack of industry knowledge"
Some insider information might be ALL that is standing between your VERY profitable tanning salon business, and becoming just another stat!
Before you spend a small fortune and energy creating your own tanning salon business, we suggest you take the time to learn what works, and more importantly, what doesn't!
(Things are really changing the tanning industry!)
Do you know the 7 Reasons Most New Salons Fail!
There was a friend of ours who got blind-sided by this industry. Her experiences and our research led us to sit down and publish this information. It is our hope that another unsuspecting entrepeneur won't be upset, or lose their dreams due to a lack of good, current information. To read more of that story click here
Tanning Salon Gold
I would look at their financials. Are they making a profit? Have sales declined recently (if so, customers may be upset and you may have to deal with negative feelings or new competition may have entered the market). How many long-term clients are there? How many are undercontract – thus captive clients? Also see if it has been fined or cited, thats important reputation wise as well as regulation wise. Check out the condition of the equipment. Also, look at the lease – is it about to expire and go up? Those are few things I woudl look at first. Also, maybe yuo wil want to enlist the help of a business appraiser/broker in your area, they can help you ask the right quetions and appropriately assess the value. Good luck!
References :
Former Director of a SBDC.