Listing ID: 67355
This full-service day spa has catered to Richmond’s West End for many years. Its talented staff offers facials, pedicures/manicures, massage, body treatments, hair removal, and even airbrush organic tanning. The owners have built a reputation for excellence and have won many regional awards over the years. The experienced staff offers personalized services to a large, loyal customer base, many of whom have been coming here for years!
This is an outstanding opportunity to acquire a turn-key business with a strong reputation in a growing market!
- Asking Price: $210,000
- Cash Flow: $81,384
- Gross Revenue: $457,869
- EBITDA: N/A
- FF&E: $42,374
- Inventory: $4,379
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
2400 SF facility is located in an upscale strip center in the affluent West End.
Will train for 2 weeks @ $0 cost. Each employee must be appropriately licensed for his/her specialty (e.g. skin, massage, nails).
Owners are retiring.
The personal care industry continues to grow as consumers spend more on increasingly specialized services. Most competition in this area comes in the form of franchises which seldom offer the same level of service nor engender the same customer loyalty.
The new owner could realize significant growth by increasing medical services or opening satellite locations.
The business was started in 1990, making the business 32 years old.
The transaction will include inventory valued at $4,379, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell businesses. Nonetheless, the real factor and the one they say to you may be 2 absolutely different things. As an example, they may claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or an array of other reasons. This is why it is really essential that you not count entirely on a vendor's word, but instead, utilize the vendor's answer in conjunction with your general due diligence. This will repaint a more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover items such as inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that earnings margins are too thin. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that must be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new customers? Most times, businesses have repeat clients, which form the core of their day-to-day profits. Specific variables such as new competition sprouting up around the location, roadway building and construction, and staff turnover can influence repeat clients and negatively impact future profits. One important thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the better the possibility to construct a returning customer base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? How might the local mean house earnings impact future revenue prospects?