Business Overview

This salon is providing hair and beauty services for the whole family in the posh and upscale neighborhood of McKinney, TX. The business strives to provide the best possible services to its clients on a daily basis. Its family-friendly environment is for anyone –from young kids to elderly. The current owner and his wife are the only staff working in the business and providing all the services, thus creating a family environment. They have a small but loyal customer base that enjoys the family atmosphere.

The Salon mainly specializes in hair-cuts and color. They also provide facials and massages. They have rental space available for other stylists or beauticians. It’s a nicely sized salon with a great potential for a new buyer.

The business was established in late 2020; the current owners have purchased new equipment and furniture and made leasehold improvements. The business has grown tremendously especially as the Covid-19 restrictions have eased. Although the revenue was low early in the year due to Covid-19, the sales have been trending up since April, 2021. The business is poised to grow rapidly in 2022 as the customer base is consolidated

The current owners are willing to stay and continue to help with the growth of this business. They would like to handover this business to a new and energetic entrepreneur who can take this business to the next level. The buyer is expected to profit handsomely from this deal.

Financial

  • Asking Price: $149,000
  • Cash Flow: $57,215
  • Gross Revenue: $100,734
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $2,000
  • Inventory Included: N/A
  • Established: 2020

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:975
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This salon is housed in a well-equipped facility located in a busy strip mall surrounded by large number of affluent residential communities of McKinney, TX. The facility has a covered area of 975 sq. ft. and monthly rent of $3,212 (includes NNN). The current lease expires in Jan 2026 and tenant has an option to extend the lease for 5 more years.

Is Support & Training Included:

2 weeks

Purpose For Selling:

Retirement

Pros and Cons:

Although the beauty and salon industry is competitive, this salon has already established excellent reputation and goodwill among its clients. In this business, clients tend to stay loyal to the business as long as they get high quality service.

Opportunities and Growth:

The current owner is not doing much marketing. Most of the business comes from walk-ins, existing clients and referrals. A new owner can direct sales and marketing efforts to further increase sales. There is a great potential for growth in the salon industry. This business can’t be outsourced. The salon is located right next to a nail spa that helps bring more additional business. The strip mall is anchored by a major retailer that attracts a lot of customers to this mall.

Additional Info

The business was started in 2020, making the business 2 years old.
The sale won't include inventory valued at $2,000*, which ins't included in the suggested price.

The business has 0 employees and resides in a building with approx. square footage of 975 sq ft.
The building is leased by the company for $3,212 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell companies. Nonetheless, the real factor and the one they say to you might be 2 completely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or a range of other factors. This is why it is very important that you not count totally on a seller's word, however rather, utilize the seller's response together with your general due diligence. This will repaint an extra practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that revenue margins are too small. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract new consumers? Most times, companies have repeat clients, which form the core of their daily profits. Particular factors such as brand-new competition growing up around the area, road construction, and employee turnover can affect repeat clients and negatively affect future incomes. One important point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the greater the chance to build a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional mean home income effect future revenue prospects?