Listing ID: 75000
Imagine owning an upscale Hair Salon and Spa that is in close proximity to one of the largest Bridal Stores in Arizona, providing you with a steady stream of new Clients. This Salon also comes with a loyal and well establish Clientele that has been growing since 2014, fabulous reviews on social media, and a beautifully built Salon space with state-of-the-art equipment. Look no further, this Salon has all of this and more.
- Asking Price: $194,000
- Cash Flow: $90,688
- Gross Revenue: $516,602
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was established in 2013, making the business 9 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 completely different things. As an example, they might say "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or a variety of various other factors. This is why it is extremely vital that you not depend completely on a seller's word, however instead, use the vendor's response in conjunction with your total due diligence. This will paint a much more practical image 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 have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that earnings margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new clients? Most times, operating businesses have repeat consumers, which form the core of their day-to-day profits. Certain variables such as brand-new competitors sprouting up around the location, roadway building and construction, and also employee turnover can affect repeat customers as well as adversely affect future incomes. One crucial thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the opportunity to develop a returning consumer base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the regional median family income impact future earnings potential?