Listing ID: 81248
Here is your chance to own two sleek and beautifully designed salons in great locations. Owners opened the first salon nine years ago and that was such a success, they were approached to replicate a second located in a high traffic Las Vegas hotel! Salons are currently run by semi-absentee owners. New owner will have staff in place and plenty of opportunity to continue to take this business to new heights. Services offered are hair and make-up, with space to add additional services.
- Asking Price: $250,000
- Cash Flow: $65,330
- Gross Revenue: $345,796
- EBITDA: N/A
- FF&E: $80,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 2011, making the business 11 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell companies. Nevertheless, the genuine reason vs the one they tell you might be 2 entirely different things. For instance, they may claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or a variety of various other reasons. This is why it is very vital that you not depend totally on a seller's word, but instead, make use of the vendor's response along with your overall due diligence. This will paint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that earnings margins are too tight. Numerous companies 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 consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new clients? Often times, operating businesses have repeat clients, which create the core of their everyday revenues. Specific elements such as new competition sprouting up around the area, road building, and also staff turn over can affect repeat customers and adversely affect future profits. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the possibility to construct a returning client base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the neighborhood average home income influence future earnings potential?