I have the opportunity to purchase a salon and spa. The owner inherited the business two years ago. It's not his core skill, and now he wants out, which he's selling at a great price. This business has all factors going for it: five star reviews on Citysearch, an established client base, a downtown location with core residents and tons of walk-by traffic. The business is fully built and successfully running now; I just walk in and take it over. The business itself is running financially at break-even. The business is 50% hair and 50% day spa, of beauty and massage.
Part of me is eager for this. Since the current owner has been only half involved, there's lot of opportunity for new services and new marketing to increase sales.
The other part of me say, ';What, this is nuts!'; Buying this sort of business in this economy, which will probably get worse in 2009, will most likely loose money. When unemployment goes up, ladies will hardly be in the mode to get manicures.
So, any thoughts on purchasing a Salon and Spa business?Should I buy a spa %26amp; salon business in this economy?
Couple of things strike me..
i)What is your current profession ie do you have any knowledge/ skills /contacts in this trade???
ii) In my experience in a recession the first things to go are luxury items such as Gym membership etc鈥?br>
iii) Will you be borrowing money to buy it
iv) Will you be giving up your current employment to go into this project full time
I think if you ask yourself these questions and answer them honestly you will get your decision