Business Overview

This high end beauty salon is perfectly located in the heart of downtown Fort Collins, Colorado, and is surrounded by high end retailers and shops. Approximately 2,000 sf; this stylish and impeccable and organized salon has 10 styling chairs, 3 shampoo bowls, color mixing station, spacious restroom, washer and dryer, and ample retail display. The front of our salon hosts much of the retail including hair care, face and body care, clothing and accessories. With this amazing location and extremely strong income demographics, many clients come to this luxe salon to relax and take advantage of the professional services.

Open for 7.5 years and business has increased remarkably each year. A remodel was
complete with a full lighting/electrical upgrade in August 2020.

Financial

  • Asking Price: $350,000
  • Cash Flow: $105,000
  • Gross Revenue: $557,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $20,000
  • Inventory Included: N/A
  • Established: N/A

Additional Info

The sale doesn't include inventory valued at $20,000*, which ins't included in the asking price.

The real estate is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell businesses. However, the true factor and the one they say to you may be 2 completely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or a variety of various other factors. This is why it is very vital that you not rely absolutely on a seller's word, however rather, use the vendor's response together with your total due diligence. This will paint an extra realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover items like inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that earnings margins are too small. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. 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 might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area bring in brand-new customers? Most times, businesses have repeat consumers, which develop the core of their day-to-day earnings. Specific aspects such as new competitors sprouting up around the area, road building, and staff turn over can impact repeat customers as well as negatively influence future profits. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business regularly, the better the opportunity to build a returning customer base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean house income impact future income potential?