Business Overview

This barber shop located in Garland is owned by a building contractor who is doing very well flipping houses. He would like to sell this business and use the cash to fund a new project. He visits the shop once a month.

His company built out the shop and it is very nice, spacious and comfortable. The shop has 6 stations. One station is currently occupied by a very busy and successful Syrian barber who has found a great niche in that market along with handling a very diverse walk-in clientele. Another station has a part time barber who works 3 days a week. These employees split their revenue 60/40 with the shop. Both are willing to stay with a new owner.

The other 4 station are unoccupied leaving a ton of room for growth. The other stations could be rented for $150/week or the walk in traffic is more than enough to add additional staff.

Currently the rent is $1,500 month for 2,200 sqft. Total monthly costs including rent are about $2,000.

Rent the unused booths to add equity and additional cash flow to the business.

Financial

  • Asking Price: $45,000
  • Cash Flow: $18,000
  • Gross Revenue: $80,000
  • EBITDA: N/A
  • FF&E: $20,000
  • Inventory: $1,000
  • Inventory Included: Yes
  • Established: 2019

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,200
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

1 week

Purpose For Selling:

other investments

Additional Info

The business was founded in 2019, making the business 3 years old.
The transaction will include inventory valued at $1,000, which is included in the asking price.

The business has 2 employees and is situated in a building with disclosed square footage of 2,200 sq ft.
The building is leased by the business for $1,500 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nevertheless, the genuine factor vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have too many other obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competition, recent reduction in profits, or a variety of other factors. This is why it is really important that you not rely entirely on a vendor's word, yet instead, utilize the vendor's answer along with your overall due diligence. This will repaint an extra realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that earnings margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be met or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract brand-new clients? Many times, businesses have repeat consumers, which develop the core of their daily revenues. Specific elements such as new competition sprouting up around the location, roadway building and construction, as well as staff turnover can impact repeat customers and adversely influence future earnings. One important point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the better the chance to construct a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Exactly how might the local typical household earnings effect future income potential?