Business Overview

Price Reduced!!!

Small well run salon. Great opportunity to enter the salon business

Rent/lease 3320 – new lease needs to be negotiated with landlord – landlord does not know she is selling yet. Landlord is described a cooperative by the Seller. Gas and water included in the rent. Commissions 60 to stylist 40 percent to business

Seller compensates herself with 60% commission

Seller willing to negotiate a transition period.

1 wax chair, 2 washing stations, 6 cutting chairs

700 – 800 square feet area… Need to confirm with Seller

4 stylists currently working including the Seller

Current stylists would stay with the business

Electricity ranges from $200 to $300 per month depending on time of year. An average of $250 is likely a good number. I have a couple of example electric bills.

$700/ month on styling supplies, hair color ext., confirmed by the Seller

No website in place or online booking system

Reason for selling, retirement
Average rev = $16414.1125/month
Rev: $196,969.32/yr

EXPENSES: $4270/month

RENT: $3320/m
ELECTRIC $ 250/m
COGS/Supplies: $700/m

Commissions are 60% of gross revenue. 40% stays with the business.


  • Asking Price: $85,000
  • Cash Flow: $20,000
  • Gross Revenue: $180,000
  • EBITDA: $20,000
  • FF&E: $10,000
  • Inventory: $2,000
  • Inventory Included: N/A
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Good condition

Purpose For Selling:


Additional Info

The business was started in 2010, making the business 12 years old.
The sale shall not include inventory valued at $2,000*, which ins't included in the asking price.

The company has 3 employees and resides in a building with disclosed square footage of 1,000 sq ft.
The building is leased by the business for $3,320 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell operating businesses. Nonetheless, the real factor and the one they tell you may be 2 entirely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of other factors. This is why it is extremely essential that you not depend absolutely on a seller's word, but rather, make use of the seller's response combined with your total due diligence. This will paint a much more realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that revenue margins are too thin. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations 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 suppliers that need to be satisfied or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in new clients? Most times, businesses have repeat customers, which develop the core of their everyday revenues. Specific elements such as new competition growing up around the location, road building and construction, as well as staff turn over can affect repeat consumers and also adversely influence future revenues. One essential point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning customer base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the regional median household earnings influence future earnings prospects?