Listing ID: 83248
This business is a 3-chair hair salon in Rankin County.
It is located in high-traffic area with great visibility and has been a staple business for over 30 years!
Income is based on weekly chair rental and small retail business. The current owner will retire soon, but wants to continue renting one of the chairs for the next 5+ years.
The 4-unit building, which can also be purchased as part of the sale, currently has 1 vacancy and will soon have 2 vacancies, allowing room for expansion.
- Asking Price: $140,000
- Cash Flow: $35,500
- Gross Revenue: $54,500
- EBITDA: N/A
- FF&E: $6,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:900
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business was established in 1987, making the business 35 years old.
The deal shall include inventory valued at $5,000, which is included in the requested price.
The property is leased by the business for $1,129 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nonetheless, the genuine reason and the one they tell you may be 2 entirely different things. For instance, they may say "I have too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, recent reduction in earnings, or an array of other reasons. This is why it is extremely crucial that you not count totally on a vendor's word, but rather, make use of the seller's answer in conjunction with your overall due diligence. This will repaint a much more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover items such as stock, payroll, accounts payable, etc. Remember that occasionally this can imply that revenue margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new customers? Most times, operating businesses have repeat consumers, which develop the core of their everyday revenues. Particular variables such as brand-new competitors sprouting up around the location, roadway construction, and staff turnover can influence repeat consumers as well as negatively impact future earnings. One essential thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the greater the opportunity to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional average house income effect future revenue prospects?