Business proposition

[Beauty Angels]

Hi Guys

Can you advise on theses figures - Im looking a purchasing a business in which my rent is 12000 per annum. I will only have a P/T doing 2 late nights and all day saturday - and this takes me to £1800 without paying myself a wage? I wondering if I am crazy now or just nerves setting in..... the business I am buying is around £13-£14000 and makes around £16 000 profit a year with a Part timer. The salon has 3 treatment rooms and i am purchasing a sunbed to go in recepton too. What do you think?

 

[persianista]

Those figures look ok. What is the current turnover?, and where is the current owner going?

 

[Beauty Angels]

Hi Hun

TO is £64000 and the new owner is travelling the world.
The owner dosent take a wage either. I am concerned according to the books she spends £17000 annum on purchases is £1400 per month about right??

 

[persianista]

That all sounds ok. Rent is a touch heavy for the turnover, but as a new owner you may find the turnover increases as you are more motivated and enthusiastic. Your stock bill for a small salon, ither hair or beauty is not gonna be 17000pa. Chances are she is slipping a bit of personal stuff through(tax deductable!) Her current profit is her salary as such, so it sounds ok. Remember that her accountant does her books to minimise the tax liability, so making the profit as low as poss.

 

[shedunlop]

I would get an accountant to look at the accounts for you. The stock costs seem very high but you need to know how these costs are made up and not guess. It is really important to do your homework first and get things checked out by an expert to be on the safe side and put your own mind at rest. I would be having second thoughts as well looking at these figures.