Listing ID: 81431
28 years in business, owner and operator is looking to start retiring. As a long time business, the business has built a strong local reputation, serving clients throughout the area and competing with the high end salons and spas. The 3 current stylists are booked through the year and will stay on with a new owner. Tremendous opportunity to to grow the business by adding up to 7 additional stylists and pedicure and waxing services.
The 2,768 sf retail salon building is owned by the business owner and would prefer to lease it to a new owner. 15 hair stations, wash sinks, pedicure and massage rooms.
Everything a salon needs to operate. The building is meticulously cared for with 32 on site parking spaces.
- Asking Price: $175,000
- Cash Flow: $68,000
- Gross Revenue: $600,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1966
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Owner will train for a transition period.
Covid reduced the number of stylists during 2020 and current owner has not focused on growing the number of stylists while offering to sell. Great value add opportunity.
This Business Is An Established Franchise
The venture was established in 1966, making the business 56 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the real reason and the one they say to you might be 2 completely different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competition, current decrease in incomes, or an array of various other factors. This is why it is extremely vital that you not rely totally on a vendor's word, however instead, use the seller's answer together with your total due diligence. This will repaint a much more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover items such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that earnings margins are too thin. Numerous organisations fall into 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 consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new consumers? Many times, operating businesses have repeat customers, which create the core of their everyday profits. Certain aspects such as brand-new competitors growing up around the location, road building and construction, and employee turn over can impact repeat customers as well as negatively affect future profits. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the higher the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the neighborhood mean family earnings influence future revenue potential?