What cash flow patterns should I see at a tanning salon across the year?

Ask for monthly cash and sales records across a full cycle, and lay them side by side. Look for the busy stretches and the slow ones, and ask the seller what drives each: events, holidays, weather or promotions. A salon with steady monthly memberships will look different from one that relies on single visits or prepaid packages.

Look at timing as well as totals. Prepaid packages and memberships bring cash in before the service is delivered, so ask how the salon records them and what it owes to customers who have not used their sessions. Your accountant can explain the difference between cash and accrual records and how each affects what you see. Ask when large costs such as lamps, repairs and rent fall in the year.

Finally, ask how the salon gets through slow months. Does it use a credit line, delay supplier payments or cut hours? Ask for bank statements and compare them with the records. If the pattern looks too smooth or too sharp, ask why. Plan your own working cash for the quietest stretch, because that is when a new owner is most exposed. Ask the seller how the quiet months felt in practice, not just on paper.

Key takeaways

• Compare a full cycle of monthly records side by side.
• Find out how prepaid packages and memberships are recorded.
• Note when lamps, repairs and rent fall in the year.
• Plan working cash for the slowest stretch.