Hello all,

I've been thinking alot about startups lately. I'm making a state to state move (Miami to Austin) at the end of the month. I really want to have my own biz in Austin, but don't want to go through the stomach turning, time and money draining act of starting from scratch. I'm selling my small, profitable skincare studio in Miami, and how I wish I could find something exactly like it in Austin!

By the way, if you are interested, check out my post for my skincare studio for sale http://www.prestoninc.net/SpaForum/index.p...dpost&p=304

If anyone has any experience with buying an existing spa/salon, your sage advice would be much appreciated!

Christine

Christine,

Good question!

As in all business purchases and start-ups this is a very individualized situation and in many cases very complex. On the one hand a start-up is very clean and you can do it “your way”, however, if you are able to find a spa with a great business operation and clientele it might be a great way to start. The big question is can you obtain a fair and true estimate of the Spa's value. I met a couple at a spa show last October in Orlando that during our consultation session told me the spa that they had purchased and owned for six months was NOT the spa they thought they we purchasing. As the old saying goes, “buyer beware”! You will hear all kinds of "rules of thumb" as to how you may establish values but in many years of lending to buyers to start or buy a business I never found "rules of Thumb" more than dangerous folk lore. If you need more information on establishing values for an existing spa you can visit yourspasuccess.com.

Depends on their:
TAXES ....the ONLY way to see if they're profitable
CLIENTS .....will they be taken away by the old owner?
SETUP ....is it a 50% money-losing thing? or how you would do it?

I would strooooongly recommend (no really insist!) that you hire a consultant to do a thorough business evaluation if you find a business that you'd consider. It would be the best money you could spend. And I'd be right up front with the seller about that–that you have a consultant, and they'll be looking at every nook and cranny, tax return, database, etc. You'd be surprised how many of them might back out of the conversation right then and there. Same thing used to happen when I told candidates that we were going to do thorough background checks...those with something to hide would drop out within the next 24 hours.

I would never attempt to purchase a spa without a consultant. There are WAY too many things to consider that many of us spend a whole career on learning! Get a PRO!