WOW, Where to start. Need a loan, I do know that much!
Hello, My name is Todd. My wife and I are currently making some huge moves in business. Here is the scoop. We currently own a smaller beauty salon. It has four stations and 1 station for a nail tech. We have agreed to buy another much larger salon here in town. With getting the new salon we are buying the building so we will no longer be renting. The new salon has 1 more station than our current location BUT has 6 tanning beds as well. In addition to the tanning it has a room that is now empty that has been used in the past for a massage room and also spray tanning. We have decided to put in one of the new Aqua-Massage beds in that room. The salon is located on the first floor and is about 3000 sqft. This is a business that has been here for a long time and has as good of a reputation as one gets in town. The reason we got it is because the current owner is 67 and ready to retire. Because of my wife's awesome reputation, he approached us before anyone in town and it never went any farther than that.
So here is the really exciting part. The salon as I said is 3000 sqft on the main level and the upper level is also 3000sqft. and wide open space just begging to be used. We have decided that our community needs a fitness facility. We have been looking into this for about 6 months now and trying to get everything put together.
We need funding for the remodeling of the gym level, a few modifications to the main level for access. and the gym equipment. the part that makes this opportunity unique is basically the gym will have no rent. The salon pays for the building and is profitable as is by itself and will be in a sense, a financial backer to the gym. Due to the lack of rent this should afford us the ability to invest in top-of-the-line equipment that will entice customers to join and give them the most effective and safest workouts available today. I believe that just because we live in a smaller community, we don't have to live in the past.
The gym will have only the costs associated with construction, equipment, insurance, and add a little more to the utility bills. Depending on where our monthly payment falls, we will only need 30-45 memberships to cover those bills completely. Our target membership is 250 and max will be 400 as a 3000 sqft facility wont support more than that. Because of the advantage of lower bills, we feel we really have a great opportunity on had. Can you say cha-ching?? We feel as well, the gym will benifit the salon with the added traffic and visa-versa. With the salon having tanning and massage, we will be offering package deals where members can get more benifits than just a gym membership. Our only competition is the city recreation center that has limited equipment that is far outdated. Patrons are also limited to thier hours, but with our gym, it is 24hr. accessable. On top of that the cities only health food store is our next door neighbor to the salon as it is located in a small but nice strip mall.
We have a very good start on our busness plan and awaiting on a few more bids to come in to finish the plan. The thing is we feel we need some places to send the plan to. We have been working with our local SBA center but want to look at all options before we jump one way or another. We have a good amount of down payment saved up that originally was to go to the salon deal, but were thinking maybe it would be better to finance more of the whole deal (gym and salon down payment) so we can start the gym right away than to give the down to the current owner/financier and then have to save yet again for further down money and do the gym. Thus we would run the risk of someone else beating us to the punch and open a gym. As of right now we are looking to need in the 200K range and looking to go 10yrs on financing.
We would love to hear any and all suggestions that could help us out.
So here is the really exciting part. The salon as I said is 3000 sqft on the main level and the upper level is also 3000sqft. and wide open space just begging to be used. We have decided that our community needs a fitness facility. We have been looking into this for about 6 months now and trying to get everything put together.
We need funding for the remodeling of the gym level, a few modifications to the main level for access. and the gym equipment. the part that makes this opportunity unique is basically the gym will have no rent. The salon pays for the building and is profitable as is by itself and will be in a sense, a financial backer to the gym. Due to the lack of rent this should afford us the ability to invest in top-of-the-line equipment that will entice customers to join and give them the most effective and safest workouts available today. I believe that just because we live in a smaller community, we don't have to live in the past.
The gym will have only the costs associated with construction, equipment, insurance, and add a little more to the utility bills. Depending on where our monthly payment falls, we will only need 30-45 memberships to cover those bills completely. Our target membership is 250 and max will be 400 as a 3000 sqft facility wont support more than that. Because of the advantage of lower bills, we feel we really have a great opportunity on had. Can you say cha-ching?? We feel as well, the gym will benifit the salon with the added traffic and visa-versa. With the salon having tanning and massage, we will be offering package deals where members can get more benifits than just a gym membership. Our only competition is the city recreation center that has limited equipment that is far outdated. Patrons are also limited to thier hours, but with our gym, it is 24hr. accessable. On top of that the cities only health food store is our next door neighbor to the salon as it is located in a small but nice strip mall.
We have a very good start on our busness plan and awaiting on a few more bids to come in to finish the plan. The thing is we feel we need some places to send the plan to. We have been working with our local SBA center but want to look at all options before we jump one way or another. We have a good amount of down payment saved up that originally was to go to the salon deal, but were thinking maybe it would be better to finance more of the whole deal (gym and salon down payment) so we can start the gym right away than to give the down to the current owner/financier and then have to save yet again for further down money and do the gym. Thus we would run the risk of someone else beating us to the punch and open a gym. As of right now we are looking to need in the 200K range and looking to go 10yrs on financing.
We would love to hear any and all suggestions that could help us out.
Thank you for your time and consideration!
