SpasCaliforniaSan Luis Obispo

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Tanning and Spray Tanning + Other Spa Services
$89,500Cash Flow: $20,000Seller Financing
Tanning and Spray Tanning + Other Spa Services

San Luis Obispo County, CA

After nearly 14 years in business, the Company has established a great reputation verified by 70% of their customers being repeat. They have a wide range of tanning beds (lay-down, stand-up, legs only, no-burn) and unlike their competitors, they have expanded offerings to include several spa services such as infrared sauna, red light facial, foot detox, teeth whitening and massage. The business is conveniently located in a nearly complete, fully renovated shopping center with close proximity to Cal Poly University and Cuesta College. Staff is well trained, relatively long term, and since they are paid commission plus wages, they are focused on sales. While offering a wide variety of packages to customers, the Business is geared toward selling 6-month recurring (EFT) memberships. The recurring revenue model provides stability during slow business cycles and contributes over 40% of annual revenue. Marketing focus has primarily been getting new customers in the door by offering a free tan or tans. Once they experience the salon, services, staff, etc., they almost always return. Industry: In the United States, indoor tanning is a nearly $5 billion per year industry, providing a backbone for close to 19,000 small businesses across the country. To put this in perspective, there are 5,000 more tanning salons than McDonald’s fast food chains in America. The vast majority of U.S. tanning salons are small, family-owned businesses and play a strong role in their local, state and national economy. Two thirds of the businesses making up the industry are female owned and employ thousands of 18-30 year olds, of which 80% are also women and one of the nation’s hardest hit demographics of unemployment. The American Suntanning Association website states that indoor tanning (IT) is beneficial for vitamin D production, satisfies a need for moderate, responsible UV exposure, and suggests that IT is an affordable self-treatment for cosmetic skin diseases that can be used to replace dermatologist-monitored phototherapy. Investment Opportunity (Company strengths): * Established, going on 14 years in business * Location – in a soon to be completed, heavily traveled, fully renovated shopping center with close proximity to CA Polytechnic State University (Cal Poly) and Cuesta Community College. * Focus is on 6-month recurring (EFT) memberships (over 40% of total revenue) * Reputation - 70% repeat customers * Experienced staff/skilled employees in place * Seller financing available * Seller willing to transition long term

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