Listing ID: 67579
Price Reduced: Asking Price is $95,000
RVA Business Brokers is pleased to offer this full service hair salon with an impeccable reputation for sale. Includes 10.5 years of established business portfolio.
Pricing for this business completed based on 35 SBA closed deals in same sector.
This salon has one of the best reputations in town and is located in a superb location.
The owner/operator has three children and would like to continue to produce for the company without the management responsibility.
- Asking Price: $95,000
- Cash Flow: $50,000
- Gross Revenue: $403,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Excellent condition and location.
Owner will continue to work on a commission basis if needed.
Desire to spend more time with three young children
The business was founded in 2009, making the business 13 years old.
The business has 6 employees and is located in a building with estimated square footage of 2,000 sq ft.
The property is leased by the company for $3,250 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. Nonetheless, the true factor vs the one they say to you might be 2 totally different things. As an example, they may say "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or a variety of various other reasons. This is why it is extremely essential that you not count absolutely on a vendor's word, however instead, use the seller's answer along with your general due diligence. This will repaint an extra reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover points like inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that earnings margins are too thin. Many businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be met or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract new customers? Most times, operating businesses have repeat consumers, which create the core of their everyday profits. Specific elements such as new competitors growing up around the location, roadway building and construction, and also personnel turn over can impact repeat consumers as well as adversely impact future incomes. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning customer base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the local median home earnings influence future revenue prospects?