Listing ID: 67591
Well known and highly regarded salon and spa, located in a well to do area, in a busy shopping center. Operating for over 20 years, the clientele is loyal and the stylists experienced.
Call Jeff Neuburg 703-623-5575
- Asking Price: $150,000
- Cash Flow: $128,000
- Gross Revenue: $700,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $3,000
- Inventory Included: Yes
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
Retiring from ownership
The company was started in 1997, making the business 25 years old.
The sale will include inventory valued at $3,000, which is included in the requested price.
The business has 11 employees and is located in a building with approx. square footage of 1,600 sq ft.
The property is leased by the company for $6,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell companies. However, the true factor and the one they say to you may be 2 completely different things. For instance, they may say "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be excuses to try to hide the reality of changing demographics, increased competition, current decrease in incomes, or an array of other reasons. This is why it is really important that you not depend totally on a seller's word, but rather, make use of the seller's solution along with your overall due diligence. This will repaint a more practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that earnings margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new consumers? Often times, companies have repeat customers, which develop the core of their daily profits. Certain factors such as brand-new competition growing up around the area, roadway building and construction, and personnel turnover can impact repeat customers as well as negatively influence future incomes. One crucial point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the higher the chance to build a returning customer base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the regional mean home income effect future earnings prospects?