Listing ID: 83799
This Business is an Award-winning hair and beauty agency based in Minneapolis/St. Paul with a recent, national expansion. They provide hair, makeup, and spa services on location to their clients, primarily, but limited to wedding parties and other group events. The business model utilizes a low overhead structure with most of the costs variable on the number of events. The specialized stylists and service providers are paid a percentage of revenue from the events, supply their own products, and carry their own inventory. Among the advantage the stylists enjoy are a backlog of events, selective booking, back office support, and the Company’s market presence. The seller does not perform any of the services. The sellers duties are home based. The Company can be exponentially grown by adding additional outsourced Stylists.
- Asking Price: $336,000
- Cash Flow: $96,500
- Gross Revenue: $240,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
- 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
Home Based. All Service are performed on site. (Home Based)
There is a lead Stylist who trains new contracted service providers. The Sellers will train the new owner on all operations.
Moved out of Country
The business model can be scaled to include additional metro areas.
This Business Is Home Based
The venture was started in 2014, making the business 8 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell operating businesses. However, the real factor vs the one they tell you might be 2 totally different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of other reasons. This is why it is very important that you not count completely on a vendor's word, but instead, use the seller's response along with your total due diligence. This will paint a much more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering things such as supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can indicate that profit margins are too tight. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise 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 agreements with vendors that must be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract new consumers? Most times, operating businesses have repeat clients, which create the core of their day-to-day profits. Certain aspects such as new competitors growing up around the location, road building, and personnel turnover can impact repeat customers as well as adversely impact future incomes. One essential point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the opportunity to develop a returning client base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the neighborhood mean household income impact future income prospects?