Family hair salon doing men’s, women’s and specializing in children’s haircutting. This business has been in this town for over 17 years. The Owner wants to retire but would work for the new Owner 2 days a week so the new Owner can get to know the customers and learn some of the tricks needed to do children's hair (especially the younger ones).
$39,000 + Inventory (+/- $5,000)
In the Greater Danbury CT area (Fairfield County)
Street & parking lot.
The front of the business is level with the road, the rear is on the 2nd floor. The work area, waiting areas, book & toys space for the kids, and the cutting stations are all open. The office/break room is off the working area. Two bathrooms are opposite the office.
Note: space (500 – 600 SF) is available for other uses and/or services.
Rent is expected to be $2,100 a month which is +/- $10.96 psf.
The owner is working with 1 part-time experienced cutter.
Furniture, Fixtures, & Equipment (FF&E):
Included in the asking price.
Growth & Expansion:
The comments above (Employees) discuss a few ideas. Others include opening more hours, selling products along with the haircutting, increasing staff to do women’s hair, coloring, etc. and doing more advertising & promotion.
Hours Of Operation:
Monday, Sunday & Thursday – closed. Tuesday, Wednesday & Friday 12 – 6. Saturday 9 – 3. All visits are by appointment. Owner working 4 days/week – all clients make appointments.
Note: Keep in mind the Owner wants to retire. You have a choice – do the same or hire cutters and expand. Sales & Cash Flow info is for a 4-day work week.
Support & Training:
The current owner will remain for 2 - 4 weeks if requested by the buyer provided an agreed split is negotiated. Note: Seller would like to work for the new owner 1 or 2 days a week. This would be good for the Buyer as more customers will get to know her (Seller).
Sales & Cash Flows:
The following is for a 4-day work week. Adjusted sales in 2019 were: $129,783. The sales in 2020 & 2021 were pandemic years and are being ignored for this discussion. For purposes of valuation and subsequent pricing, 2019 financials will be used.
Cash Flows (Sellers Discretionary Earnings) for 2019 is +/- $65,083.
Note this does not take into consideration that there is a lot of potential for a new Owner. It was decided to price under market values and give the New Owner every chance to grow the business (or not to) any way he/she wants - in other words, quite a deal is available for a Buyer.
What you can do to expand this business:
Open more days and hours. Sell add-ons, chemicals, etc. Hire more cutters. Advertise & promote the business. Start a direct mail campaign and get involved with social media.
Recurring Revenue Streams?
Yes. Hair keeps on growing – every so often it has to be cut!
Reason for Selling:
If qualified & with security, the Owner will consider financing with 50% down and the balance financed over 2-3 years at +/- 7% interest.
…Over 2,536 children age 14 and under within 3 miles of business, 5,767 within 5 miles, and 35,780 within 10 miles.
…Over 2,000 client cards with contact info – ideal for mailing lists etc. (check these out yourself)
…You have a choice, hire cutters and expand or keep it as is.
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.