Business Overview

This Profitable Beauty Spa located in Spring, Texas just outside of The Woodlands is great opportunity for a new owner. The business was started in late 2019, withstanding the pandemic and growing revenue by over 3X from 2020 to 2021. There are 5 full time employees who provide all of the services to the clients including Spray tans, Waxing, Lashes and eye brow services. This is a non franchised business, so no need to worry about royalties or having to stick to a very strict product or service offering. The owner has determined that running a Beauty Spa was not their personal calling and would like to sell and find another opportunity to focus on.

Financial

  • Asking Price: $85,000
  • Cash Flow: $16,098
  • Gross Revenue: $228,737
  • EBITDA: $2,162
  • FF&E: $5,000
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 2019

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,376
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Beautifully built facility with a modern touch with a focus on high end clientele. Great reception area where clients check in, relaxing waiting area with small bar area where clients can have a refreshing complimentary drink while they wait. Multiple private rooms for client services. The spacious layout will make people feel comfortable even in the pandemic era.

Is Support & Training Included:

The seller is willing to provide the buyer with two weeks of training not exceed 30 hours a week. Seller states the very simple business model and competent staff will make the transition very easy.

Purpose For Selling:

Seller is looking to focus on their CPA certification.

Pros and Cons:

Competition includes other brands such as: Amazing lash, European wax and Waxing in the City. The pros to this spa for sale is they offer more services than any of the individual competitors.

Opportunities and Growth:

The business has a lot of potential for growth. The seller is not very comfortable with networking and being the face of the brand. She believes someone who is very outgoing can make this business grow exponentially.

Additional Info

The business was started in 2019, making the business 3 years old.
The transaction will include inventory valued at $2,000, which is included in the asking price.

The company has 5 employees and is located in a building with estimated square footage of 1,376 sq ft.
The property is leased by the business for $3,362 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell companies. Nonetheless, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of other factors. This is why it is very important that you not count entirely on a vendor's word, yet instead, utilize the vendor's answer combined with your total due diligence. This will repaint a much more practical picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies finance loans with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that profit margins are too small. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract brand-new customers? Many times, operating businesses have repeat customers, which develop the core of their daily earnings. Specific variables such as brand-new competition growing up around the area, roadway building, and also personnel turnover can impact repeat consumers as well as negatively affect future revenues. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the better the chance to build a returning client base. A last idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the edge of town? How might the regional typical house earnings effect future income potential?