Listing ID: 81253
An in-line location, centrally located and established in a busy Smiths shopping center for 14yrs!
This salon has a beautiful interior with all stations, furniture and equipment. Also, has additional rooms for private stations. Don’t spend, what would be more time and more money, to build-out a new salon when you can start making a profit TODAY!
- Asking Price: $45,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $30,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2004
- 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
The business was started in 2004, making the business 18 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. However, the true reason and the one they say to you may be 2 completely different things. As an example, they may state "I have too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a variety of various other factors. This is why it is really essential that you not rely entirely on a seller's word, but instead, use the seller's answer together with your general due diligence. This will repaint a much more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that revenue margins are too tight. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be satisfied or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new customers? Many times, companies have repeat customers, which develop the core of their day-to-day profits. Specific variables such as new competitors growing up around the location, road building and construction, and personnel turnover can impact repeat customers as well as negatively affect future revenues. One essential thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the better the opportunity to construct a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the local average home income effect future revenue potential?