Business Overview

The salon has been in the same location for over 30 years. Currently has 6 Stations and 4 rooms. There is plenty of room for 3 more stations. Rooms for massage, waxing, and other personal services. Includes a tanning bed. Also room for larger product displays. Owner will stay on as a stylist. All stylistes and estheticians are contractors, are locals and have loyal clients.

Financial

  • Asking Price: $49,000
  • Cash Flow: N/A
  • Gross Revenue: $41,000
  • EBITDA: N/A
  • FF&E: $55,000
  • Inventory: $1,500
  • Inventory Included: Yes
  • Established: 1992

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,805
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

There are currently 5 stylists and 1 esthetician and the owner is also a stylist. There is a tanning bed in one of the rooms. 2 roms are currently vacant. There is a break area. The slaon does have a waiting area.

Is Support & Training Included:

As needed

Purpose For Selling:

Make life simpler as a local sytlist and more time for personal life

Pros and Cons:

There are a few salons in the local neighborhood but this salon is the oldest and best known local salon

Opportunities and Growth:

There is room to double the business with additional stations and rooms rented. All stations and rooms are due for rent increase int he Spring.

Additional Info

The business was founded in 1992, making the business 30 years old.
The sale will include inventory valued at $1,500, which is included in the listing price.

The property is leased by the company for $2,314 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals decide to sell businesses. Nevertheless, the genuine factor and the one they tell you might be 2 completely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is very crucial that you not count absolutely on a seller's word, however instead, utilize the vendor's solution along with your overall due diligence. This will paint a much more reasonable picture of the business's existing scenario.

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 finance loans so as to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that profit margins are too small. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in new customers? Most times, operating businesses have repeat consumers, which develop the core of their daily profits. Specific factors such as new competition sprouting up around the area, road building and construction, and also employee turnover can influence repeat consumers and adversely influence future profits. One essential thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the possibility to construct a returning consumer base. A last thought is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? How might the regional median family income impact future earnings potential?