Business Overview

Both salons have been in business at their present locations since 1986 and 2004. This is 100% absentee with a long term manger in each location. The general demographics of the customer base is a wide range of middle-class individuals of all age groups that live in the surrounding densely populated residential neighborhoods. Net sales have been very consistent over the several decades of operation and are expected to remain consistent as the population increases in this area. In 2021, they added new bowls, lights and ceiling tiles in both locations. New chairs and plumbing in one location.

Financial

  • Asking Price: $108,934
  • Cash Flow: $55,781
  • Gross Revenue: $304,548
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1986

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,200
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

3 weeks

Purpose For Selling:

other interests

Additional Info

The venture was founded in 1986, making the business 36 years old.

The business has 10 employees and is located in a building with approx. square footage of 1,200 sq ft.
The real estate is leased by the business for $2,241 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. Nevertheless, the true reason and the one they tell you might be 2 absolutely different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in incomes, or a range of various other factors. This is why it is really crucial that you not count completely on a seller's word, but rather, make use of the seller's solution along with your overall due diligence. This will repaint an extra practical image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that earnings margins are too tight. Lots of companies fall into 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 may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract brand-new customers? Most times, businesses have repeat consumers, which develop the core of their everyday revenues. Specific variables such as brand-new competition growing up around the area, roadway construction, and employee turnover can affect repeat consumers as well as adversely affect future revenues. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the higher the chance to develop a returning customer base. A final thought is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the local typical house earnings influence future income potential?