Listing ID: 80494
Sale Price: $200,000
Gross Sales: $400,000
Cash Flow: $120,000
-What year did the business open? 2011
-The current owner’s have been operating? Since opening, and 2018
-They provide Full hair salon and spa services
-The current owners want to concentrate more on cutting hair and less on management and running the business. They also want to cut down on some fo their own hours working in the business.
-The current owners will assist in the transition of the sale? If the current buyer is a stylist they can transition clients easily.
-What are the commissions of the staff? staff 50%. Owners 60%
-How long has each staff member been employed by the salon? 3-10 years
-How many employees? including owners 5
-How many chairs? 7 Chairs
- Asking Price: $200,000
- Cash Flow: $120,000
- Gross Revenue: $400,000
- EBITDA: N/A
- FF&E: $20,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Growth: -Are you doing any marketing? no -What are the growth opportunities that you see? A lot with marketing and adding new spa services -Do you have social media for business? Yes -What products do you sell? Color wow, Moroccan oil, Rene Furterer, others
The company has 5 employees and is located in a building with estimated square footage of 1,200 sq ft.
The building is leased by the business for $3,197 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. Nonetheless, the true reason and the one they tell you may be 2 totally different things. As an example, they might say "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, recent reduction in incomes, or an array of various other factors. This is why it is very crucial that you not rely entirely on a vendor's word, yet instead, utilize the vendor's answer together with your total due diligence. This will repaint a more practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many companies borrow money in order to cover items like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract new customers? Often times, operating businesses have repeat clients, which form the core of their daily profits. Particular elements such as brand-new competition growing up around the area, roadway construction, as well as employee turnover can impact repeat consumers and also negatively influence future revenues. One essential thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business regularly, the higher the chance to build a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the regional typical household income influence future income potential?