Business Overview

Unique opportunity to own an independent salon in Northern Virginia that’s been serving clients for 25 years. The owner and principal stylist provides the full suite of cutting, coloring, foiling, and related hair care services to a loyal clientele. The salon is situated in a prominent planned community on the banks of the Occoquan River that is in an ideal setting for a boutique hair salon.

The salon has seen steady and sustained growth in recent years. The development where the salon is located has grown exponentially since it was founded. The community caters to the younger professional demographic with the average age of around 40 with an annual income of $94,000. New houses, condos, and apartments continue to be constructed in and around the development. The greater Woodbridge/Lake Ridge/Occoquan market has been a source of significant expansion and economic growth in Northern Virginia in recent years which is expected to continue for many years to come.

The owner and founder has decided it’s time to retire after building and running this successful operation and wants to ensure her clients remain in good hands. This is the perfect opportunity for a salon owner looking to expand their footprint or for a stylist looking to set out on their own without the headaches and expenses of starting a salon from scratch. The combination of over two decades in business, a stellar reputation, and attractive lease terms in a prime location are hard to come by, so don’t let this opportunity pass you by and contact us today!

Financial

  • Asking Price: $75,000
  • Cash Flow: $75,000
  • Gross Revenue: $127,079
  • EBITDA: N/A
  • FF&E: $5,000
  • Inventory: $15,000
  • Inventory Included: N/A
  • Established: 1997

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:625
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The salon is ideally situated on the main stretch of a mixed-use retail setting in a newer high-density community adjacent to the Occoquan River waterfront. There is a park nearby, a marina, and a dozen businesses at 100% occupancy. The space measures roughly 625 square feet and is an ideal size for a boutique salon concept. Hair Salon & Spa Data: Style Stations: 2 Color Stations: 2 Shampoo Bowls: 2 Dryers/Hair Processors: 1 Nail Stations: 1 Pedicure Stations: 1 Private Rooms for Massage & Spa Services: 1 Please note, the seller owns the real estate where the business currently operates. They are willing to enter into a long term lease for the space for $1,850/month + utilities or sell the space along with the business for a total of $375,000.

Is Support & Training Included:

Seller will provide 30 days of transitional training and support.

Purpose For Selling:

Owner is retiring after 25 years in business.

Pros and Cons:

There is standard competition for the industry and market. This salon attracts a higher end clientele compared to competitors in close proximity to the business. The salon has an advantage over many competitors with its excellent reputation, established track record, and prime location.

Opportunities and Growth:

There are many opportunities for a new owner to grow and expand the business. It would make sense to create a broader online presence and implement new marketing and advertising campaigns to increase awareness. A new owner might also consider bringing on additional stylists or offering new services to appeal to a broader demographic.

Additional Info

The company was established in 1997, making the business 25 years old.
The sale shall not include inventory valued at $15,000*, which ins't included in the requested price.

The business has 1 employees and is situated in a building with estimated square footage of 625 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you may be 2 entirely different things. As an example, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or an array of other factors. This is why it is extremely vital that you not rely completely on a vendor's word, however rather, use the vendor's answer combined with your overall due diligence. This will repaint a much more realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that earnings margins are too thin. Many organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be satisfied or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in new customers? Often times, companies have repeat clients, which develop the core of their everyday profits. Certain elements such as new competition growing up around the area, roadway building, and personnel turn over can impact repeat clients and negatively affect future incomes. One crucial point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean home income effect future income potential?