Listing ID: 67618
Turnkey business located in a heavy traffic strip center surrounded residential area nearby.
This full-service hair salon has been beautifully established and offers a vast selection of services including Hair, Nails, Waxing and so much more. The salon provides a relaxing, clean, yet organized ambiance for customers to relax comfortably while getting the service.
Great reputation and client base with guaranteed customer satisfaction is their number goal.
- Asking Price: $50,000
- Cash Flow: $50,000
- Gross Revenue: $120,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: Yes
- Established: N/A
The sale does include inventory valued at $5,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nevertheless, the genuine reason vs the one they tell you may be 2 totally different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to try to hide the reality of changing demographics, increased competitors, recent decrease in profits, or a range of various other factors. This is why it is really vital that you not rely completely on a vendor's word, but instead, use the vendor's solution together with your overall due diligence. This will paint a much more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering items such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can indicate that profit margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new customers? Often times, operating businesses have repeat customers, which develop the core of their everyday profits. Certain elements such as brand-new competition growing up around the location, road building and construction, as well as staff turnover can affect repeat customers and negatively affect future revenues. One crucial thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning client base. A final idea is the basic location demographics. Is the business located 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?