Business Overview

This massage spa is a well-established luxury spa located near a very busy intersection of two major highways in Dallas county. This spa’s services and products are imported exclusively from all around the world. Its clients notice improved physical and mental health after using its services and products. This spa offers unique aromatic therapy and exotic hydrotherapy packages. There are 4 licensed massage therapists on staff. All massage therapists are experienced. Most of the customers are walk-in clients and then they become repeat customers.

The seller is ready to retire and she’d like to hand over this business to a motivated buyer who can take it to the next level.

Financial

  • Asking Price: $140,000
  • Cash Flow: $115,000
  • Gross Revenue: $300,000
  • EBITDA: N/A
  • FF&E: $75,000
  • Inventory: $5,000
  • Inventory Included: N/A
  • Established: 2014

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,600
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This is a large, well-equipped and ideally located massage spa ready for a new owner. This spa is nicely built with 2,600 sq. ft. area and monthly rent of $2,700 (including NNN). It has 6 spacious massage rooms, a regular shower, and wet room. The spa is located in a strip mall at a strategic location poised for huge growth.

Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Pros and Cons:

Although there are several, sales have consistently gone up at this spa. This is a clear testimonial to the great service and products that this spa offers to its clients. This business has established great reputation with clients over the past 7 years.

Opportunities and Growth:

The massage industry is growing at the rate of 22% per year and will continue to do so for the foreseeable future. Currently, this business primarily provides massage services. The new owner can add more supplementary services such as facials and hair removal to grow sales and profitability. Current owner isn't doing any internet marketing; Google (pay-per-click) or mailers, re-educating the surrounding area of their presence could significantly increase revenue.

Additional Info

The business was established in 2014, making the business 8 years old.
The transaction shall not include inventory valued at $5,000*, which ins't included in the listing price.

The company has 5 employees and is located in a building with approx. square footage of 2,600 sq ft.
The building is leased by the business for $2,700 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell businesses. However, the genuine factor vs the one they tell you may be 2 entirely different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons stand. However, for some, these may simply be reasons to attempt to hide the reality of changing demographics, increased competition, current decrease in incomes, or a variety of other reasons. This is why it is really vital that you not depend totally on a vendor's word, yet rather, make use of the vendor's response in conjunction with your overall due diligence. This will repaint an extra practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many companies finance loans so as to cover items such as stock, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise 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 contracts with vendors that should be satisfied or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract brand-new customers? Most times, companies have repeat customers, which develop the core of their day-to-day profits. Specific aspects such as brand-new competitors sprouting up around the location, road building and construction, and also staff turn over can influence repeat consumers as well as adversely affect future earnings. One important point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the better the chance to develop a returning consumer base. A final idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the regional average family income effect future revenue prospects?