Starting a sunbed shop

[philcourier]

Hi everyone, I think this is my first post - been a lurker for a while, I love reading the forums in particular the business one so keep up the good work guys. Anyway, me and a couple of mates have got a far bit of capital lying about and are looking to do some with it. Had a few ideas floating about, the latest is a sunbed shop. Seems to be a relatively low set up cost business, about £25 - £50 a week to lease a bed, about £1k a month for a shop unit. Also lot's of them are unmanned and run themselves. It just strikes me as a low risk business which could potentially run itself with little time required to take care of it.

Just wondering if anyone is in the business or has any experience / comments on the idea.

Cheers, Phil.

[JustinP1]

Nice as an idea. Easy to get burned though.

[mel]

Are you trying to clean up some dirty cash?

[Glassman]

mel said:

Are you trying to clean up some dirty cash?

[KevF]

IMHO I think your about 8 years too late.....

[mel]

Most deffinately too late, I mean everyone now knows that upstairs in a sunbed shop is a hydroponics suite growing the finest skunk and downstairs is the money laundering facility. The cash business of running sunbeds provides the cover for both the massive electricty usage and banked cash, I mean lets face it in some town centres there are two or three of the places and they're almost always empty.

[LeeThePeople]

Even if you do find a new site, its not the cash cow you think it is. We have a few tanning salons and they do little or no business in winter and even when they are peaking they are not going to pay enough to pay a healthy wage to pay a few people.

They are used as disposable businesses, easy and cheap to set up but go down the pan just as quick when the novelty wears off in the area. Ours are only successful because they are attatched to beauty parlours or hair salons, without them it wouldnt be worth me bothering.

[StevieBee]

There's a study that is due to come out soon that is likely to cast doubt over the future validity of this type of business on health grounds.

Also, you have not included in your estimations, utilities and insurance, which is likely to be very high.

[pgilc1]

philcourier said:

Hi everyone, I think this is my first post - been a lurker for a while, I love reading the forums in particular the business one so keep up the good work guys. Anyway, me and a couple of mates have got a far bit of capital lying about and are looking to do some with it. Had a few ideas floating about, the latest is a sunbed shop. Seems to be a relatively low set up cost business, about £25 - £50 a week to lease a bed, about £1k a month for a shop unit. Also lot's of them are unmanned and run themselves. It just strikes me as a low risk business which could potentially run itself with little time required to take care of it.

Just wondering if anyone is in the business or has any experience / comments on the idea.

Cheers, Phil.

I dont see how you're concluding low risk?

You wont get a lease for premises for less than 1 year, so thats £12000. I'd imagine the sunbed leases will be per year, so 4 @ £25p/w = £5200. Employing someone at minimum wage @ £800p/m inc contributions = £9600.

So if you signed all those leases and it bombed, you could be down £15K to £20K easy.

[philcourier]

Thanks for the comments guys. Electricity is one big expense I didn't think of! The location I've spotted is ideal (massive throughflow of traffic) and there's no competition for a couple of miles. I still see it as a low risk as max. cost in year 1 = £40k rent, rates, fit out, sun bed lease etc. offset by some income. Loss would be split 3 ways as well. Thanks for the input guys, defintely food for thought.

[JustinP1]

philcourier said:

Thanks for the comments guys. Electricity is one big expense I didn't think of! The location I've spotted is ideal (massive throughflow of traffic) and there's no competition for a couple of miles. I still see it as a low risk as max. cost in year 1 = £40k rent, rates, fit out, sun bed lease etc. offset by some income. Loss would be split 3 ways as well. Thanks for the input guys, defintely food for thought.

If you are going to do something reasonably small time with marginal or modest profits, don't do it three ways.

The input of three people is a plus, but so is the liability. Lets say your venture only breaks even in the first year. Are you all still willing to keep working for free in the second. Then lets say you do and there is £15k profit split 3 ways, are you all still willing to put in the hours for £5k a year?

For something on that level you would should consider one person running the whole thing. If you make £15k profit is is getting to be worth it, and it is also worth putting in the extra time/effort as any extra profit isn't split 3 ways...

[jon-]

StevieBee said:

There's a study that is due to come out soon that is likely to cast doubt over the future validity of this type of business on health grounds.

Any more info on this?

[superlightr]

philcourier said:

Loss would be split 3 ways as well. Thanks for the input guys, defintely food for thought.

hey if you have any more loss making ventures please let me know.


If you havnt even thought about the elec bill for a business that has a high ele bill then suggest you do a lot more research. Talk to local salons. sit outside one count the numbers in/out and time. etc