Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF #:76931-944067

**Only $45,000 down payment with SBA loan assumption! Business is also ideal for E2 Visa**

This gorgeously built out massage studio and spa was opened in 2017. The current lease is up in March 2022 and even with NNN, the rent is only $3,180 for 1500 ft.². The business has five stunning massage rooms, with one of the rooms built out entirely in tile with a Vichy shower for body scrubs. Vichy showers cost thousands of dollars and are a rare amenity in a spa or salon of this size. The attention to detail in the buildout is unmatched for the type of facility this is.

While the owner currently works full-time performing massages, there are three other employees who work on a commission-based basis (50/50). There is room to add 2-4 part-time massage therapists in addition to 1-2+ full-time therapists. All in all, this is a volume-based business model that is set up to grow significantly, even though revenues and sales are already more than adequate to sustain the business. Annual sales average between $140,000 and $189,000+, with about 30% of revenue being cash. Bottom-line profitability is around 26% of gross sales, so with growth in service sales, the SDE would improve drastically. Three rooms are rented out currently and that revenue covers approximately 2/3 of the rent, so a buyer would have that guaranteed revenue through the year.

All a buyer would need to do is add a few full- or part-time therapists to grow the bottom line. With a new owner who is working to manage the business, growth will be much quicker and easier to achieve. Pricing is currently very low compared to other similar massage businesses, and with slight price increases, annual revenues can be vastly increased. The business is located in a high-traffic and very visible and well-kept strip center in an area that is growing tremendously near Tomball and The Woodlands, Texas.

Financial

  • Asking Price: $105,000
  • Cash Flow: $51,944
  • Gross Revenue: $189,766
  • EBITDA: N/A
  • FF&E: $20,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2017

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,500
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Historically, the day-to-day operations of the business are not complicated, and the business can easily be run by one person at a time. There is no immediate need for full-time management or reception as it can be easily owner-operated, but the salon is ripe for updating in regards to marketing, online booking and/or adding services. There is so much room for additional advertising on social media platforms and Google Ads. People are always looking for massage services, and with a minimal investment and its current great reputation, this business could easily appear at the top of Google searches.

Is Support & Training Included:

2 weeks

Purpose For Selling:

focus on family

Opportunities and Growth:

There is vast potential for growth not only due to the fabulous location and demographics, but for the fact that there is room to hire 1-5+ more massage therapists. With a full team, the busy weekend days at the massage studio could generate double the current sales. Also, as the economy rebounds and people are getting out of the house, personal services like massages are at the top of consumers to do list, and massage therapy is beneficial for mental health and helps alleviate the stress that we’ve all experienced over the last year or more. In any kind of service business, small annual price increases are the easiest way to increase revenue numbers. The area where the studio is located is booming residentially and commercially, and there is quite a bit of disposable income as well. Potential Sources of Sales and Revenue Growth Include: • Adding 1-5+ Licensed Massage Therapists • Retail product sales • Price increases—even minimal increases can generate additional thousands in revenue • Membership-based options to generate guaranteed monthly revenue in exchange for a set number of services per month • Keeping up to date and adding trending services • Investing in marketing—Google Ads, Facebook, Instagram, etc.

Additional Info

The company was established in 2017, making the business 5 years old.

The business has 3 employees and is situated in a building with disclosed square footage of 1,500 sq ft.
The real estate is leased by the company for $3,180 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell operating businesses. However, the true factor vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent decrease in profits, or a variety of other factors. This is why it is really essential that you not rely completely on a seller's word, yet rather, make use of the vendor's answer together with your general due diligence. This will repaint an extra practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, etc. Remember that occasionally this can indicate that revenue margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area attract brand-new consumers? Many times, businesses have repeat consumers, which form the core of their daily earnings. Specific variables such as new competition growing up around the location, roadway construction, and also employee turnover can affect repeat customers and adversely influence future profits. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business often, the better the possibility to construct a returning customer base. A final idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Just how might the local median household earnings impact future revenue prospects?