Listing ID: 67624
This is a rare opportunity to own an independent salon in Central Virginia that has been serving clients for over 13 years. The owner is the principal stylist provide services not limited to full suite of cutting, coloring, foiling, and related hair care services to a loyal clientele. The demographics where the salon is located has grown rapidly since it was founded, and it caters to the younger professional demographic with the median age of around 35 with a great walk score through the shopping center establishment.
The owner/founder has decided it’s time to retire after building and running this successful operation and wants to ensure her clients remain in expert 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.
This a combination of over a decade in business, a stellar reputation, and attractive lease terms in a prime location are scarce at this given time.
- Asking Price: $99,000
- Cash Flow: $70,000
- Gross Revenue: $347,571
- EBITDA: N/A
- FF&E: $55,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The business was started in 2009, making the business 13 years old.
The deal 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 why people decide to sell businesses. However, the real reason and the one they say to you might be 2 completely different things. For instance, they might claim "I have way too many other 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 transforming demographics, increased competition, current reduction in incomes, or an array of various other factors. This is why it is really important that you not depend entirely on a vendor's word, yet rather, use the vendor's response in conjunction with your general due diligence. This will repaint an extra reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering points like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that revenue margins are too tight. Lots of organisations fall under a revolving door of taking loans 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 structure where the business resides. The business might have existing contracts with vendors that should be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new customers? Most times, companies have repeat clients, which develop the core of their everyday earnings. Particular elements such as brand-new competition growing up around the location, roadway building and construction, and also staff turnover can affect repeat clients and also negatively impact future incomes. One important point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the greater the chance to develop a returning consumer base. A final thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local mean house income influence future revenue prospects?