Listing ID: 72817
Two upscale hair salons that serve mainly gentlemen in highly desirable, high pedestrian traffic locations. One location has the real estate included with the purchase and the other has a very affordable lease. The real estate included in the purchase is in one of Portland’s most sought after mixed use locations within walking distance of the waterfront. Surrounded by high end condo’s, it is a premiere location to serve a clientele that enjoys being pampered. These full service salons are 5 STAR rated on Yelp and Google and have an established Facebook account. You will not find a higher rated salon in Portland. Fantastic reputation and established employees with a repeat customers. It is an opportunity for an existing salon owner to purchase two thriving salons and own the real estate of one with enormous appreciation potential. An NDA is required to review this opportunity.
- Asking Price: $987,000
- Cash Flow: $451,225
- Gross Revenue: $529,040
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $1,758
- Inventory Included: Yes
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Established salons in prestigious upscale locations.
The industry is predominately repeat customers that are loyal to staff. These locations do receive a good deal of walk by traffic.
There are additional stations available to add staff. Increase advertising both online and print.
The company was founded in 2014, making the business 8 years old.
The deal will include inventory valued at $1,758, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell operating businesses. Nonetheless, the genuine reason vs the one they say to you might be 2 absolutely different things. As an example, they might say "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in incomes, or a range of other reasons. This is why it is very important that you not count absolutely on a seller's word, but instead, make use of the vendor's solution together with your total due diligence. This will paint a more sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses borrow money in order to cover points like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that earnings margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Many times, operating businesses have repeat consumers, which create the core of their daily earnings. Certain variables such as new competition sprouting up around the area, road building and construction, as well as personnel turnover can impact repeat customers as well as adversely affect future incomes. One important point to take into consideration 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 on a regular basis, the better the chance to construct a returning consumer base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Just how might the regional typical family income impact future earnings prospects?