Listing ID: 82874
Profitable and growing nail salon in Ellisville MO. Salon was built out early 2020 and has approximately $140k in leasehold improvements including 6 mani and 6 pedi stations, each with a custom ventilation station. Business has been increasing monthly since reopening this year after closing or Covid. Owner would like to focus on other business. For additional information please contact listing agent Bruce Thompson at 314-614-6390 or firstname.lastname@example.org.
- Asking Price: $140,000
- Cash Flow: $53,605
- Gross Revenue: $250,600
- EBITDA: N/A
- FF&E: $49,100
- Inventory: $2,000
- Inventory Included: Yes
- 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
This is a leased location of 1,200 square feet with a Total Rent of $3,050. Lease ends 12/2024. Seller is active in the business with 5 Independent Contractors. Hours of operation are 9:30 AM -7:00 PM MON-SAT; 11:00 AM - 5:00 PM. $2,000 in Inventory and $49,100 in FF&E included in Asking Price. $140,000 made in Leasehold Improvements.
Wants to Concentrate on Other Business - House Flipping
The transaction will include inventory valued at $2,000, which is included in the asking price.
The business has 5 employees and resides in a building with estimated square footage of 1,200 sq ft.
The property is leased by the business for $3,050 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell businesses. However, the real reason vs the one they tell you might be 2 completely different things. For instance, they might say "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in earnings, or a variety of various other factors. This is why it is extremely essential that you not count entirely on a seller's word, yet instead, use the seller's response along with your total due diligence. This will paint a more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies finance loans in order to cover points such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that earnings margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in new customers? Often times, companies have repeat clients, which form the core of their daily earnings. Specific factors such as brand-new competitors growing up around the location, roadway building, as well as personnel turnover can impact repeat customers as well as adversely affect future profits. One essential thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the greater the chance to build a returning customer base. A last idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Just how might the regional median home income impact future earnings prospects?