Business Overview

Money Making Beauty Supply – Sales exceeding $1,000,000

This independent beauty supply store has been in business since 2006, and they have increased sales year over year. 2021 was their best year with sales of $1,362,548, and $253,406 in cash flow. This is as turn-key as it gets with a recently remodeled building. You can buy the business and building together or purchase the business separately. The real estate cannot be purchased without the business. The seller is relocating down south and wants to start a new business there. Please call Nadir Jiddou at 248-220-3274 for more info.

Financial

  • Asking Price: $499,999
  • Cash Flow: N/A
  • Gross Revenue: $1,362,548
  • EBITDA: N/A
  • FF&E: $200,000
  • Inventory: $400,000
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:3,500
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Beauty Supply Shop takes up 3,500 square feet of the 5,600 sq/ft building. The building sits on a very busy road and has 30 parking spaces. Another tenant occupies the remaining space.

Is Support & Training Included:

Seller will be available for 14 days for training at a minimum of 4 hours per day at no additional cost to Buyer

Purpose For Selling:

Relocating to a different state

Pros and Cons:

Continue to provide great service & inventory, and the competition will not impact business. The location provides plenty of business since the area is so diverse.

Opportunities and Growth:

Business can be increased by implementing a marketing plan, which does not exist currently. Current owner has increased sales by word of mouth and great service.

Additional Info

The company was established in 2006, making the business 16 years old.
The sale shall not include inventory valued at $400,000*, which ins't included in the requested price.

The company has 3FT/1PT employees and resides in a building with approx. square footage of 3,500 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell companies. However, the real reason vs the one they tell you may be 2 entirely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or an array of other reasons. This is why it is extremely important that you not depend completely on a vendor's word, yet instead, utilize the vendor's answer together with your total due diligence. This will paint an extra sensible image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too thin. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. 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 satisfied or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in brand-new customers? Most times, operating businesses have repeat clients, which develop the core of their daily earnings. Particular factors such as new competitors sprouting up around the area, roadway building and construction, and staff turn over can affect repeat consumers and negatively affect future profits. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A final idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood typical home income influence future income prospects?