Listing ID: 71459
This nail salon located in north Middlesex County in a neighborhood shopping plaza is 2300 square feet with 9 manicure stations and 9 pedicure chairs. Is fully staff with 9 employees.
- Asking Price: $289,000
- Cash Flow: $150,000
- Gross Revenue: $680,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,300
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
The owner will train a new buyer in management of the daily operation.
This is consider a hi volume nail salon in the community.
The company was founded in 2017, making the business 5 years old.
The company has 9 employees and is situated in a building with approx. square footage of 2,300 sq ft.
The property is leased by the business for $3,800 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell companies. Nonetheless, the true reason and the one they say to you may be 2 totally different things. As an example, they might state "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is very crucial that you not count totally on a seller's word, yet rather, make use of the seller's response combined with your total due diligence. This will repaint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering points like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be fulfilled or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new customers? Often times, operating businesses have repeat customers, which develop the core of their day-to-day profits. Specific aspects such as brand-new competition sprouting up around the area, road building, and personnel turnover can affect repeat consumers and negatively impact future earnings. One essential thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden 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 general location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood typical house income influence future revenue potential?