Business Overview

30+ year established prime-location full-service salon and online haircare retail business is available for acquisition. The current owner acquired the established salon in 2010 and streamlined and improved the overall operation and with the gained experience and knowledge, established, now a successful online retail business in 2016. While the salon caters to the established local clientele providing a wide range of professional haircare and nail services, the online business is targeted towards nationwide clientele selling high-quality and professional hair care products on major retail websites. This establishment operates in a 4,000+ SF retail strip center anchored by a national supermarket chain surrounded by affluent residential neighborhoods. The interior is furnished with modern decorations and features an open floor plan embracing large open spaces with each section designated for hair and nail care and private rooms for waxing. The majority of the customers are upper-income individuals of all ages from the heavily populated residential neighborhood. The salon provides a wide range of services from hair coloring and treatment, haircuts, waxing, and nail services and the online business consists of multiple major listings sites, including Amazon, Walmart, and eBay, selling high-quality major brand name hair care products at a competitive price point as well as products the owner developed for special hair care through many trials and errors, which are deemed to be better quality at much inexpensive price. The pandemic was a major setback for the salon and is slowly but surely recovering. Meanwhile, the online business has been growing every year since its establishment and flourished in the last few years, growing from $1.23 million to $1.53 million from 2019 to 2020 and to $2.21 million in 2021.

This business enjoys multiple sources of income from chair rental income, a commission from the stylists, retail sales from the salon, and online. The nationwide operation online business generates 80% of total sales while the local operation salon generated the remaining 20%. It is evident that the consumers have shifted their shopping habits due to the pandemic and the owner has taken a proactive approach by creating a proprietary software to streamline ordering and efficiency and secured a strong relationship with the manufacturers and distributors, which enabled them to offer products at a very competitive price. The competition is expected but limited in both businesses and a few of the biggest advantages this business possesses are that most of the inventory is stored onsite at one of the larger salons in North Dallas and unnecessary storage expenses are eliminated due to established relationships with the manufacturers and distributors, they can offer competitive prices and even below the MSRP.

The current owners have established all the legwork and successfully built a truly profitable business up to this point but have no further desire to grow and are seeking other opportunities. Despite the success, there is still room for growth for an enthusiastic buyer to take it to the next level by adding more brands and more products online, proactively marketing the salon on social media platforms, and actively promoting the salon’s online store. The sale includes all the assets including fixed assets and intellectual property including the listing sites, proprietary software, trademarks, and operational trade secrets. The potential to exponentially grow the business is truly limitless if the new buyer would follow the footsteps of the current owners’ operation and know-how. This is a unique opportunity to acquire an established and highly profitable business that will be cash flowing from the first day of new ownership.

Listing ID #001159
For more info, please call Kevin Chung at 1-866-519-2421.

Financial

  • Asking Price: $1,690,000
  • Cash Flow: $341,471
  • Gross Revenue: $2,623,492
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $24,000
  • Inventory Included: N/A
  • Established: 1992

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:27
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business is located in one of the more affluent neighborhoods in North Dallas suburbs anchored by a national supermarket chain. The busy intersection and the surrounding businesses provide constant foot traffic. All fixtures and equipment are maintained regularly and in great condition. (Home Based)

Is Support & Training Included:

The owner of the business will provide the necessary training needed to smoothly transition into the business operation.

Purpose For Selling:

One of the owners is retiring and the other is seeking other opportunities.

Pros and Cons:

The online business and beauty salon industry is known for its competitive nature, the synergy created from both businesses together mitigates competition. The online business has an infinite customer base, while the 30+ year established has an established and loyal customer base that returns to the stylists that have been with the business before the current owners acquired the business. The online business sells well-known professional salon-grade products and enjoys high customer satisfaction and reviews. The salon is one of the bigger salons in North Dallas and provides various types of services while exercising safety social distancing.

Opportunities and Growth:

The potential growth for online business is truly limitless. The current owners simply do not have enough time, aspiration, or energy to expand and add additional products on the listing sites. Currently, the business approximately has 2,000 items listed online and one sure way to immediately increase the sales is by listing more products, brands, and expanding the inventory. The new owners may also acquire another existing salon to expand the room to store more products. With the expansion, the new owner will have more buying power, resulting in more discounts from the suppliers and a better profit margin. The salon could benefit from employing more stylists and/or station leasers, which will generate immediate additional income. Also, because the owners are occupied with the online business, little to no effort is being made on marketing and promoting the salon. More online presence with the help of SEO and social media presence is crucial to generate more foot traffic.

Home Based:

This Business Is Home Based

Additional Info

The business was founded in 1992, making the business 30 years old.
The deal won't include inventory valued at $24,000*, which ins't included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell operating businesses. Nevertheless, the true factor and the one they say to you might be 2 entirely different things. For instance, they may say "I have a lot of various obligations" 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 decrease in earnings, or an array of various other factors. This is why it is extremely vital that you not depend absolutely on a seller's word, but rather, use the vendor's answer together with your total due diligence. This will paint a much more practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that earnings margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may 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

How do companies in the area draw in new clients? Most times, operating businesses have repeat customers, which form the core of their everyday profits. Specific variables such as new competitors sprouting up around the location, road building, and staff turn over can influence repeat customers as well as adversely influence future profits. One vital point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the greater the chance to build a returning client base. A last thought is the general location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the local average household earnings influence future earnings prospects?