How do I sell a tanning salon?

A tanning salon is a small equipment business with a loyal customer base. Buyers look hard at the beds, because they are the main assets and the main cost of replacement. They also look at what customers have already paid for. Most tanning owners are not stylists, so the sale story is about machines, memberships and routine, not about one person’s clients.

Bed and lamp records

Make a list of every bed and booth with its make, model, approximate age and where it was bought. Keep the invoices, the service log, and a record of when lamps and filters were last replaced. A buyer will want to know which units are near the end of their life. If any equipment is leased or financed, say so up front and have the paperwork ready.

Memberships and prepaid packages

Customers who have paid for a package or a membership are owed those visits. Prepare a report of every active membership and unused package, with the date sold and what remains. Buyers want to know whether the new owner honours these, and how that is reflected in the deal. Your accountant and lawyer can tell you how they should be treated at closing.

Seasonal sales

Most tanning salons see sales move through the year, with busy stretches before holidays and trips. Give a buyer at least a few years of monthly sales so the pattern is visible instead of surprising. If you plan to list the business, think about the time of year the buyer will see the numbers and explain any quiet months before they ask.

Retail and lotion sales

Retail products can be a real part of the revenue. Keep a count of stock on hand and show sales by product so a buyer can see what moves.