Listing ID: 83312

Business Overview

This business would be a good fit for hair stylist looking to operate their own business. The business is currently profitable without the owner operating it but could potentially be more profitable if it was owner operated.
Great location with high traffic volume. With good layout and all the equipment in place.

Financial

  • Asking Price: $42,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: $20,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2016

Detailed Information

  • 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
About The Facility:

Great facilities

Is Support & Training Included:

The owner is willing to train a new owner.

Purpose For Selling:

Downsizing

Additional Info

The venture was started in 2016, making the business 6 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell operating businesses. Nevertheless, the real factor vs the one they tell you may be 2 totally different things. As an example, they might say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or an array of other factors. This is why it is very important that you not rely entirely on a vendor's word, but rather, use the seller's response combined with your total due diligence. This will paint a more sensible image of the business's present situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies finance loans so as to cover points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that profit margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area attract brand-new clients? Most times, operating businesses have repeat clients, which create the core of their daily earnings. Particular aspects such as new competitors growing up around the location, road construction, as well as employee turn over can influence repeat consumers and adversely impact future profits. One essential thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the better the chance to build a returning customer base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional mean household earnings influence future revenue prospects?