Listing ID: 77553
Established 29+ year old hair salon in Coachella Valley area with zen garden views is located in a quaint private setting. With 800 sq feet and four complete rooms, this spa is turn-key and ready for new ownership. this can be easily transformed into a day spa. Small kitchenette, laundry, washroom, beverage station and supply area is 100% equipped. New lighting, ceiling fans and Belvedere chairs make this place special. The chic salon features a calm, relaxing atmosphere with private parking drawing in an upscale clientele. Authentic artwork collection is negotiable for consignment. Whether seeking a second location, branching out as a first time owner, this is a must see! Owner ready for retirement/relocation. Call Agent for details.
- Asking Price: $75,000
- Cash Flow: $15,014
- Gross Revenue: $54,889
- EBITDA: N/A
- FF&E: $7,500
- Inventory: $2,500
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:800
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The business was established in 1990, making the business 32 years old.
The transaction does include inventory valued at $2,500, which is included in the suggested price.
The business has 2 employees and is located in a building with estimated square footage of 800 sq ft.
The real estate is leased by the business for $1,300 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nonetheless, the genuine factor vs the one they say to you may be 2 totally different things. For instance, they may say "I have too many various commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or an array of other factors. This is why it is very crucial that you not count completely on a vendor's word, yet rather, use the vendor's answer along with your overall due diligence. This will repaint an extra reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans so as to cover things such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that profit margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be met or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new clients? Often times, operating businesses have repeat clients, which form the core of their day-to-day earnings. Certain elements such as new competitors sprouting up around the area, road construction, as well as employee turnover can influence repeat consumers as well as negatively affect future incomes. One essential thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the chance to construct a returning customer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the neighborhood median home earnings effect future income prospects?