Listing ID: 81575
Price recently reduced all reasonable offers considered
Established hair salon located in Schaumburg with 5 stylist including the owner.
Layout includes 9 hair stations, 4 wash bowls, 4 hair dryers
Located in busy strip center with plenty of parking and good signage.
Owner willing to remain as part time stylist.
Contact broker for details.
- Asking Price: $37,500
- Cash Flow: $12,000
- Gross Revenue: $86,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $4,000
- Inventory Included: N/A
- Established: 2001
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:960
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
960 sq/ft. 9 work stations. Excellent signage. Plenty of parking
Owner willing to remain on as p/t stylist. Will train as needed
Local marketing, advertising and social media would be a plus
The venture was started in 2001, making the business 21 years old.
The deal doesn't include inventory valued at $4,000*, which ins't included in the listing price.
The business has 5 employees and is situated in a building with disclosed square footage of 960 sq ft.
The property is leased by the company for $2,275 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. Nonetheless, the true factor and the one they say to you might be 2 absolutely different things. As an example, they might say "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competitors, recent decrease in earnings, or an array of various other factors. This is why it is really essential that you not count completely on a vendor's word, yet instead, make use of the seller's answer along with your total due diligence. This will paint a much more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too small. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new consumers? Most times, companies have repeat consumers, which form the core of their daily revenues. Certain elements such as new competitors sprouting up around the area, roadway construction, as well as staff turn over can affect repeat customers and adversely impact future profits. One important point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business often, the better the possibility to develop a returning customer base. A last idea 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 typical household earnings impact future revenue prospects?