Luxury Tanning in West Omaha With $90,000 Profit - Business For Sale

947

Equipment and startup costs over $300,000 along with inventory and buildout are included in this sale. With solid name recognition and an upscale location this boutique tanning business offers exceptional services at an above average price point. The cost of a tanning bed ranges from $8,000 to $40,000 with the average being $23,000. This opportunity enables a new buyer to avoid incurring startup expenses, effort and time but to realize profitability and growth right away. A new owner could put 10% of purchase down [$25,000] and it would be nearly the same price as one high-end bed.
Attracting an upscale West Omaha client demographics services provided include UV free tanning, heated sunless airbrush application and spray tanning by utilizing 11 high quality tanning beds and equipment. Clients are able to customize their experience with the recent addition of spray tanning which provides growth opportunity to promote these new offerings and increase sales. Current location has been open since 2012 and boasts 18 client rooms, 3 of which could be used for expanded services. Current marketing focuses on daily specials, monthly and seasonal promotions as well as a website and an online social media presence.
The current owner has lived in Arizona since February 2015 and is running the business 100% absentee.

Financial Overview
List Price: $250,000
Gross Sales
2014: $302,413
Owner Profit/Cash Flow
2014: $89,760
YOY Growth/Sales Trends: 3 Year Consistent Profit Margin
Profit Margin: 29%
Multiple: 3.25 *Multiples range from 1-5, with the average being 3
Valuation: 2014 Cash Flow x Multiple = Price
$89,760 x 3.25 = $291,720

Assets Included in Purchase: $601,951
Build-Out & Startup: $300,000
Inventory: $2,851
Furnishings, Fixtures & Equipment: $299,100
11 Tannings Beds $259,740
Furniture & Artwork $6,447
Media: TV, Sound Systems $5,868
Tanning Bed Bulbs $10,593
Washer, Dryer & Water Heater $10,805
Software $5,645

*amounts may vary
Business Information
Year Established: 2005
Location and Service Area: South West Omaha
Facility: Relocated to new 3,300 sq ft facility in 2015
Clients: High-end upper class clientele
Services: Highest quality tanning beds, spray tan & heated sunless airbrush, UV free tanning
Reason for Selling: Moving
Employees: 1 Full-time, 2 Part-time
Hours: M-Th 9am-9pm, F-Sat 9am-6pm, Sun 11am-5pm
Seller Training Period: 30 days or more if needed
Growth Opportunity: Recently added spray tan services, continue promoting
Current Owner’s Responsibilities: Marketing, scheduling, some bed re-lamping, airbrush tan applications: less than 15 hours per week

Facilities:

Relocated to new 3,300 sq ft facility in 2015

Growth Potential:

Recently added spray tan services, continue promoting

Training/Support:

30 days or more if needed

Seller Financing:

25% Seller Financing: $62,500

Sale Reason:

Moving