The Veld Group Listings: Tan Salon Bargain

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Tan Salon Bargain - Lancaster / Palmdale

Industry Description	Tanning Salon	SIC	7299-44
Days Open	7 days	Year Established	2004
Hours of Operation	8-8p, Sat 9-5, Sun 10-2	Years Owned	2004
Full-time Employees	1 (Owner)	Part-time Employees	1
Other Notes
Hours/wk by Owner	40 Hrs.	Owners Duties	Mngt. Oversight
Skills / Licenses Reqπd		Training Offered / Cost	4 weeks @ 20 hrs
Non-Compete Terms	5 years / 5 miles

Exec. Summary	This tanning salon exists near a highly popular, growing day spa.

Lease / Bldg. Info.	Lease	Monthly Rent	$550 ($0.95 psf!)
Lease Commenced	1/25/04	Deposit	TBD
Lease Expires	January 2010	Term & Option	TBD
Bldg./Area Description	Shopping center	Square Footage	550
Seats, Pkg, Zoning, etc.	Small shopping center with ample parking

Reason for Sale	Owner is relocating out of state.
Financial Summary	Current Yr. Annual	2003 / Owner to Prove	2002 / Owner to Prove
Gross Revenue	$50,000 (Estimated)	n/a	n/a
COGS	$3,000	n/a	n/a
Rent / CAM	$6,600	n/a	n/a
Payroll	$7,800	n/a	n/a
Net Profit (before tax)	TBD	n/a	n/a
Discretionary Cash	TBD	n/a	n/a

Expense Breakdown

Included in Sale	Assets		Liabilities
FF&E Included	$55,000	Lease Obligations	$0
Inventory Included	$300	Debt Included	$0
Other Assets Included		Other Liabilities	$0
Working Capital (not incl)		Return on Sale Price

Asking Price	$55,000	Owner Financing/Terms	Owner Will Consider
Earnest Money Dep.	$5,000	Down Payment	$30,000

Opportunity Summary

Headline

Low maintenance efficient tanning salon

Summary

This quaint tanning salon is located next to a full service day spa (sharing the same name) and contemporary coffee and pastry shop. The salon had been built from scratch with investment of about $55,000 between structural improvements, beds and equipment, front office furnishings, and decor. The salon has an area which the owner would like to set up for a manicurist, nearly covering the monthly rent expense! The day spa next door is cooperative in cross-promoting the two businesses. This salon runs itself and all beds can be operated from the front desk computer. Great opportunity to get into a new business at a very low cost.

Facilities / Assets

The business operates out of 550 square foot facility. The building consists of a front office reception area with a custom counter for the employee, as well as a computer setup to operate the beds. This area also includes products and a beautiful waiting lounge for customers. The facility has 4 rooms with new Regal 38/1 Express beds - valued at over $22,000 and included in the sale! The total amount invested into the equipment and the build-out was $55,000, and the owner only seeks $55,000 to ensure a quick sale on the business.

Competition

Local competition is deemed to be medium.

Growth Potential

Many opportunities for expansion exist. Ideally, a new owner will be able to utilize the storage room for a even more lucrative activity - offering manicures, spray tan, etc.

Other

8721 West Sunset Blvd. • Suite 103 • Los Angeles, CA 90069 ph 310•652•VELD {8353} fx 310•652•8363 toll free 866•600• 8353 {VELD}
contact@theveldgroup.com

Opportunity Summary
Headline	Low maintenance efficient tanning salon
Summary	This quaint tanning salon is located next to a full service day spa (sharing the same name) and contemporary coffee and pastry shop. The salon had been built from scratch with investment of about $55,000 between structural improvements, beds and equipment, front office furnishings, and decor. The salon has an area which the owner would like to set up for a manicurist, nearly covering the monthly rent expense! The day spa next door is cooperative in cross-promoting the two businesses. This salon runs itself and all beds can be operated from the front desk computer. Great opportunity to get into a new business at a very low cost.
Facilities / Assets	The business operates out of 550 square foot facility. The building consists of a front office reception area with a custom counter for the employee, as well as a computer setup to operate the beds. This area also includes products and a beautiful waiting lounge for customers. The facility has 4 rooms with new Regal 38/1 Express beds - valued at over $22,000 and included in the sale! The total amount invested into the equipment and the build-out was $55,000, and the owner only seeks $55,000 to ensure a quick sale on the business.
Competition	Local competition is deemed to be medium.
Growth Potential	Many opportunities for expansion exist. Ideally, a new owner will be able to utilize the storage room for a even more lucrative activity - offering manicures, spray tan, etc.
Other