Buying a repossesed salon would you?

[julie.adamson]

Hi geeks I would like all of your advice on buying a business that has recently closed due to being repossesed, There are many other salons near to the closed salon, some just nails and some beauty and holistic with nails attached.

Is this a good idea?
Should I bother to view it as it is at a lower price than some I have seen and the details are really tempting?
How do I raise the financing as I only work part time as an hourly paid lecturer so all savings are now none existant, I have tried business link.

I have done lots of research on buying busineses and am really excited about getting my own of the ground.

All advice would be greatly appreciated as dont want to waste anyones time if not worth it.

 

[Doorie]

for how long have you been doing nails?
what can you offer that the others don't have?
how many clients a day would you take?
how many techs working together?
staff or independant?
what prices?

^^^is it realistic?

how much cash do you have?
how much can you find?

etc.

if you have no cash aside, drop the idea. in the beginning it's quite hard to get started and if you have nothing, well you eat nothing

 

[julie.adamson]

Hi Doorie thanks for your prompt reply as this has been buring a hole in my mind for 2 weeks.

for how long have you been doing nails?
I have been doing nails for 6 years
what can you offer that the others don't have?
As the salon already has tanning beds I will offer this and all nails, spray tanning which I am booked to do a course in in a few weeks time for my mobile clients and hollywood toes. Already know the local salons dont offer the hollywood toes.
how many clients a day would you take?
how many techs working together?
Would be myself and my sister renting a room that is empty as she does holistic therapies

Currently it would be a businees loan or personal loan, really want a salon of my own as so many near where i live are mobile we are often sharing clients or fitting for clients! and husband says stick with the day job and carry on doing nails as and when.

 

[Terese]

If your buying a repossed salon...is it through the old owner?

If you do decide to buy it and its not ltd(as I think you have to wait for all the rigmorol) change the name, change the decor and like whats been said before look at what your offering...

Why did it fail?

Did the owner not give enough time/thought into it

I would say most important though...when its yours dont look on it as a repossesion(in the past),put your personality into x

 

[Cathie!]

I think you need to delve deeper as to why it was reposessed.

Did the previous owner leave and take her clients?

Was there not enough business with the competition there is round about there?

Did they not have enough busy staff to meet the overheads?

With overheads you need to look beyond rent as there are so many other costs....business rates, electric, water, public performance licence, telephone, advertising, stock, salon insurance and that's all before you start taking an income from it. Are you sure that with 2 of you, you will be able to turn over enough money to meet these costs and take a decent income for yourselves?

I'm not trying to burst your bubble, just put a realistic slant on it. :hug:

 

[Martin Smith]

Definitely all great advice. My suggestion is what are you buying in the salon? THE greatest asset you could buy is the client listing. How many are they? How much did they spend over the last 12 months? How many could you re-activiate?

Take a long hard look at this asset. If it is over stated you can use this as leverage to get the price down even lower.

I know one lady who did just that and got £10K wiped off the price of the salon!

Good luck in whatever you decide to do. :hug:

 

[sam28]

I totally agree with Martin. If you get a good client listing with it and you can knock down the price perhaps you could re-invent it, mail all the clients and tell them its under new ownership and perhaps give them a voucher for a treatment so they can try it out. Perhaps look into the reason why its repossessed a bit further though first. Best of luck xxx