What is the #1 reason people have for not buying a tanning salon?
It not the salon not being in the right location, or having the right equipment, a great staff or even having great sales numbers.
well then what is it you ask? the reason that most people who have a desire to own a tanning salon do not follow through is money!
no not how much the asking price is, but how much cash they have, or are willing to devote to buying an existing tanning salon.
How do we overcome this problem of getting money to those who need money to buy a tanning salon?
There are 3 main options to consider:
Option one, potential buyers can work with there Business consultant, Tanning Salon broker, or the current owner (seller) of the tanning salon directly to uncover capital solutions that many people are unaware are available or at least often over look
If the salon is making over $250,000 a year and has been in business at least 3 years and they have 30% to put down they could consider an SBA loan, provided they have good credit, the chances of this are in line with winning at Keno. Since I am not a gambling person, I would not bet on this option turning out well and would recommend on focusing on one of the other funding options.
This option is not offered about 95% of the time when most salons are initially listed for sale, however about 80% of salons that sell end up extending owner financing to at least a certain degree. Most owners are afraid of the obvious "what if they don't pay me ?" which is an obvious and real risk, however its better to have a buyer give you a guarantee backed by/or not backed by some form of collateral (often personal assets and even sometimes the equipment in the salon) with some sort of down payment then closing your doors. Many salon owners feel like closing there doors will yield a substantial cash payoff, which they find out afterwards is not reality. I have seen entire planet beach tanning salons with late model equipment, tan walls, t max timers, newer mystic tans, the whole thing start off at $5,000 and hit a max bid of $9,000. $9,000 for an entire planet beach is not much, no its not but that an owner similar planet beach was offered about $80,000 for her planet beach before she closed it, however at the time she was planning on reopening.
If you are planning on closing your store, storing your equipment (and paying a monthly storage fee, sometimes as high as $500 a month) until its nice an old and banged up from moving multiply times, to reopen in a new location with equipment that's banged up, don't do it!
Unless the market does a complete 180 used equipment will do nothing but go down in value. Tanning salons are worth much more as a whole than selling just the beds.
However if you have already closed your salon or have extra beds for sale you can get a decent price out of them by going to professionals such as our partner website www.WeBuyTanningBeds.com
Tanning salon buyers can also avoid the pitfalls of not having the money to buy a tanning salon, by contacting the creative funding consultants at www.TanningSalonLoans.com