Listing ID: 83674
This gorgeous salon was custom built and originally designed by an award-winning architect. Its doors opened in 2007. Fourteen years and two economic downturns later, the business has a crew of 20 and continues to thrive as one of the area’s most popular salons. Through the years the owners have put systems in place to ensure a smooth running and high volume operation with tremendous revenue potential.
Services include hair cutting, shampooing, all types of hair coloring, texture treatments, waxing, manicure, pedicure, eyelash extensions, and facials. The salon also sells products for all types of hair. shampoos, conditioners, masks, nail polish, nail products etc. Seller financing is available for the right buyer. Price includes approximately $24,000 of inventory as well as training and transition services.
- Asking Price: $275,000
- Cash Flow: $164,139
- Gross Revenue: $817,000
- EBITDA: $3,315
- FF&E: $25,000
- Inventory: $24,000
- Inventory Included: Yes
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,960
- Lot Size:N/A
- Total Number of Employees:17
- Furniture, Fixtures and Equipment:N/A
Outstanding location near shopping and restaurants, ample free parking, affluent clientele, transferable lease
More time to spend with family and dedicate time to work behind the chair
The business was started in 2007, making the business 15 years old.
The sale will include inventory valued at $24,000, which is included in the requested price.
The business has 17 employees and is located in a building with approx. square footage of 2,960 sq ft.
The property is leased by the company for $11,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell operating businesses. However, the real factor vs the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in incomes, or an array of various other factors. This is why it is extremely important that you not rely absolutely on a vendor's word, however instead, use the seller's answer together with your total due diligence. This will paint a more sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover items such as stock, payroll, accounts payable, etc. Remember that in some cases this can imply that profit margins are too small. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in brand-new clients? Often times, businesses have repeat clients, which develop the core of their everyday profits. Particular aspects such as brand-new competitors sprouting up around the area, road construction, and also employee turnover can affect repeat clients and negatively affect future profits. One important thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the better the possibility to build a returning customer base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood average home earnings influence future income potential?