Listing ID: 79496
Reason for Sale: Retirement- Long Established Hair Salon in East Broward Mall. After 22 years in business the owner wants to retire. Great opportunity for a stylist or another salon to relocate into this location. The salon has 8 chairs/1 nail station/1 pedicure station, 1 room for other services. Services offered hair, nail, wax. 5 hairdressers will transition with the new owner. Current owner currently administrates the business. Rent is currently $3400/month -850 sq ft salon. Lease expires on 3/2023. Price at $49k for a quick Sale.
- Asking Price: $49,000
- Cash Flow: $2,607
- Gross Revenue: $100,098
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $2,000
- Inventory Included: Yes
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
East Broward mall- Rent $3400/Month-Lease Expires 3/2023-850 sq ft.
Will train for 2 weeks @ $0 cost.
The venture was started in 1999, making the business 23 years old.
The deal will include inventory valued at $2,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell businesses. Nonetheless, the true factor and the one they tell you may be 2 completely different things. As an example, they may claim "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is extremely important that you not rely absolutely on a seller's word, however rather, utilize the seller's solution combined with your total due diligence. This will paint a more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that revenue margins are too small. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new clients? Most times, companies have repeat customers, which create the core of their daily revenues. Specific aspects such as new competitors growing up around the location, road construction, and also staff turnover can affect repeat customers and adversely affect future profits. One essential thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the opportunity to construct a returning consumer base. A last idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local median family income influence future income prospects?