Listing ID: 78553
Beautifully renovated and profitable hair salon & spa for sale in N.W. Washington DC. Lowest rent you can find for this space and area @ $6,000 per month. In business for 15 years. 2,500 square feet. 9 Chairs, 6 Hairdressers, 1 Nail Sation, 3 Private rooms allow for expansion of services like waxing and massage. 2 partners, one potentially moving. All employees willing to stay on. Contact for more details and for showing instructions.
- Asking Price: $249,000
- Cash Flow: $152,803
- Gross Revenue: $620,180
- EBITDA: N/A
- FF&E: N/A
- Inventory: $1,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The sale doesn't include inventory valued at $1,000*, which ins't included in the suggested price.
The company has 10 employees and resides in a building with approx. square footage of 2,500 sq ft.
The property is leased by the company for $6,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nevertheless, the genuine reason and the one they say to you may be 2 entirely different things. For instance, they may state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competitors, current decrease in incomes, or an array of other factors. This is why it is extremely vital that you not rely absolutely on a vendor's word, yet instead, utilize the seller's answer together with your general due diligence. This will repaint a much more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering points such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that earnings margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract brand-new customers? Often times, businesses have repeat consumers, which develop the core of their everyday earnings. Certain variables such as brand-new competition sprouting up around the area, road building and construction, and employee turn over can influence repeat customers and also adversely affect future revenues. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to build a returning client base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean family earnings impact future earnings prospects?