Listing ID: 67587
Website, social media
Mon.-Fri.: 9:00 am – 7:00 pm
Sat.: 8:00 am – 4:00 pm
Sun.: 11:00 am – 4:00 pm
REASON FOR SALE
2,500 sq ft.
$4,629.19 / month (8/1/2021 – 7/31/2022)
$4,748.07 / month (8/1/2020 – 7/31/2023)
13 Barbers, all 1099
$1,000,000 (2021 projected)
$ 895,465 (2020)
CASH FLOW (SDE)
$ 138,548 (2021 projected)
$ 84,415 (2020)
$ 204,894 (2019)
$ 207,276 (2018)
ASKING PRICE $550,000
Business is an investor’s dream. It’s a modern, luxurious take on the old-time, community barbershop with a deep 26-year history in Richmond.
Now, after building an incredible legacy, the Seller is a 100% Absentee owner with $204,894 in Seller’s Discretionary Earnings (SDE) in 2019. Business is a no time commitment, incredible cash flow business for the right investor. The Business is run by a full-time staff of 2 and 13 barbers who are independent contractors.
The shop caters to men and women with haircuts, beard trims, and other hair care services. Prior to COVID-19, it offered a luxurious experience with a masseuse, manicurist, complimentary beer or wine with service and generated $1.2 million annually.
In 2020, the Business generated $895,465 and $84,415 SDE with the business closed between March and May due to Covid-19. In 2020, 10% of the business came from 869 clients with an average service cost of $25.94 per visit. On average, the top 869 clients each visited the shop 11.19 times.
Business is returning in 2021 with the business reaching the monthly sales goals target as of April and projected to reach $1 million revenue and $138,548 SDE by year’s end.
The market caters to the business professional as it is located near the Richmond area providing proximity to many in the Richmond, VA either by primary residence or work location.. The average customer at Business is mass affluent, between 30 to 50 years old and visits Business once every three weeks for a shampoo/haircut. It has diverse clientele and provides a family friendly atmosphere.
Business is well-loved in the area with 5 stars on Facebook, 4.4 stars on Google, and 4 stars on Yelp. The shop is very active on social media with 1,289 followers on Instagram and 105 posts. It has 1,963 likes on Facebook and 1,328 check-ins.
Area competitors charge more for similar services in smaller facilities. Key to Business’s prominence is their long history in the community, competitive pricing scale, and expertly trained barbers.
The Seller has done all the work of building a strong, highly profitable luxury barber shop with an expertly trained staff and a deep, well-respected history in the Richmond community. His decision to explore other business ventures is an amazing opportunity for a Buyer to step into a 100% absentee business with $200,000 cash flow.
The sale includes approximately $85,000 in furniture, fixtures, and equipment, website and social media accounts, goodwill, a client list exceeding 8,000 regulars, and tremendous room for growth.
An absentee owner opportunity of this nature doesn’t come along often.
- Asking Price: $550,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The company was started in 1995, making the business 27 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nonetheless, the true reason vs the one they tell you might be 2 completely different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or a range of various other reasons. This is why it is very vital that you not depend absolutely on a seller's word, however instead, utilize the vendor's answer along with your general due diligence. This will paint a more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies take out loans so as to cover items such as stock, payroll, accounts payable, etc. Remember that occasionally this can suggest that earnings margins are too tight. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in brand-new customers? Many times, companies have repeat customers, which develop the core of their everyday revenues. Specific elements such as brand-new competition growing up around the location, road building, as well as staff turn over can impact repeat clients and negatively impact future earnings. One important point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the higher the possibility to build a returning customer base. A final thought is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local typical family income impact future revenue potential?