Business Overview

This is a very established full-service salon that is located in a busy shopping center with a major grocery chain, lots of daily traffic. Services for women, men and children include: cut & style, color, facial trim & style, prem and waxing all within a comfortable open space. Professional products used for treatments as well for retail sale. The Seller currently works 30+ hours a week, services a few clients and tends to the operations. This is a perfect business for someone that is a stylist, someone with good business sense will take this salon to the next level financially!

Financial

  • Asking Price: $49,900
  • Cash Flow: $38,000
  • Gross Revenue: $89,000
  • EBITDA: $43,000
  • FF&E: $35,000
  • Inventory: $2,500
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,200
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This Salon has 5 styling stations, 3 wash stations, 3 dryer stations, storage & break area, business office, retail space and waiting area. Laundry machines and bathroom.

Is Support & Training Included:

Owner will provide 80 hours of training to buyer.

Purpose For Selling:

Owner wants to spend more time with family.

Pros and Cons:

This salon has a become a community fixture in a great easy to find location on a busy corner.

Opportunities and Growth:

There's great potential for amazing growth for a full-time owner operator, located in a busy shopping mall.

Additional Info

The venture was founded in 2006, making the business 16 years old.
The deal shall not include inventory valued at $2,500*, which ins't included in the asking price.

The company has 3 employees and resides in a building with approx. square footage of 1,200 sq ft.
The property is leased by the company for $2,150 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. Nevertheless, the genuine factor and the one they say to you might be 2 absolutely different things. As an example, they may say "I have too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competitors, current decrease in profits, or an array of other reasons. This is why it is extremely crucial that you not count totally on a seller's word, yet rather, use the seller's answer together with your total due diligence. This will paint an extra sensible image of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies borrow money so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be met or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in brand-new clients? Often times, businesses have repeat consumers, which form the core of their daily earnings. Specific variables such as brand-new competition growing up around the location, road building and construction, as well as employee turn over can impact repeat consumers as well as negatively impact future profits. One essential thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the higher the opportunity to build a returning customer base. A last idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the regional average family income impact future income prospects?