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Old 05-29-2007, 10:03 AM   #6
Schneed10
A Dude
 
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Join Date: Feb 2005
Location: Newtown Square, PA
Age: 46
Posts: 12,458
Re: buying a small business

Quote:
Originally Posted by Mattyk72 View Post
Tanning salon with everything included. Computers, beds, etc., and an established client list.
With a business like that, you'd want to know:

- Is there a mortgage on the salon, if so how much per month/year? If not, is there a lease on it, if so how much per month/year? Or is it owned outright?

- How much is the electric bill each month? (them things pull serious juice)

- How are the tanning beds and other stuff maintained? Maintenance contract, I assume. How much per month/year?

- How much are the other utilities per month?

- How many employees are there? How much are they paid (including benefits)?

- How many client visits do they do per year? If they can provide that information by calendar month, that's even better, because I'm sure their spring season is real busy while the fall is real slow. That would affect your cash management and is important to know.

- What's the average revenue per client visit (just divide total revenue by client visits).

- How much excess tanning bed capacity do they have? In other words, are the tanning beds always completely booked, are there always some open, or are there always a lot open. You'd like to know how much room you have to grow business without having to add more beds.
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