Listing ID: 79462
Reason for Sale: Retirement- Long Established Hair Salon/Studio in Coral Springs. Same owner -Same location since 1988. 750 Sq ft Salon studio with 4 chairs. 2020 Sales for 2020- $121k with an owner benefit of $60+k. Seller/landlord will provide a new lease. Lease will extend to 2023 at $2285/month. One of the oldest salons in Coral Springs. Salon is located in the heart of the community redevelopment district. Private parking in back of the shopping center. 2021 #’s thru Nov with an owner Benefit of $60k. Great entry price at $39,500.
- Asking Price: $39,500
- Cash Flow: $60,595
- Gross Revenue: $85,801
- EBITDA: N/A
- FF&E: $1,000
- Inventory: $1,000
- Inventory Included: Yes
- Established: 1988
- 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
Storefront location- Rent $2285/Month-Lease to 12/31/2023- 750 sq ft.
Will train for 2 weeks @ $0 cost.
The business was started in 1988, making the business 34 years old.
The deal shall include inventory valued at $1,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nevertheless, the real reason vs the one they tell you may be 2 absolutely different things. As an example, they might claim "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competitors, current decrease in incomes, or an array of various other reasons. This is why it is really essential that you not depend absolutely on a seller's word, yet rather, make use of the seller's response together with your overall due diligence. This will paint an extra realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of companies borrow money with the purpose of covering items such as stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that profit margins are too tight. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new clients? Often times, businesses have repeat customers, which form the core of their daily revenues. Particular aspects such as new competition growing up around the location, road building, as well as employee turn over can influence repeat customers and also negatively affect future earnings. One important point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the local mean home income impact future earnings potential?