Owner Profit/Cash Flow
Profit Margin: 34%
Cost to Create – already established and completely built out, a new owner would avoid the headache of starting from scratch; equipment and inventory in place; perfect as an investment business or for a stylist looking to expand without having to worry about start-up costs
Assets Included in Purchase: $56,000
Equipment: $54,000 – includes equipment and furniture for 9 stations, towels, washer & dryer
Intangible Assets: Decades’ old reputation, loyal clientele, name recognition
Inventory: $2,000 in products
*amounts may vary
Years in Business: Over 40
Location and Service Area: Omaha
Number of Clients: The salon serves a client base of 1,500
Booth Rent: Booths currently rented for $175/week – 9 booths total with only 4 occupied
Lease: $2,339/month – includes CAM; 1,396 sq. ft.
Reason for Selling: Owner has growing family and would like to no longer manage the business
Employees: 5 Stylists renting booths
Hours: Tues – Sat 9am to 5pm
Seller Training Period: Seller is willing to stay on as a stylist
Growth Opportunities: Add manicurists/pedicurists, rent out all booths; hire more stylists to accommodate walk-ins
Current Owner’s Responsibilities: Owner is one of the stylists
20% Buyer Down Payment:$13,000
10% Seller Financing:$6,500
70% Bank Loan:$45,500
A 20% down payment of $13,000 would profit $38,846 after debts. In the first year, this represents a two-fold return on investment.
Located in Omaha, this salon is listed for $65,000 and is run by a booth rental model. Completely outfitted for 9 stylists, currently there are 5 renting for $175/week with the seller willing to stay on and rent for a new owner. The salon has been in operation for over 40 years, and has been in its current location for around 6 years. This is the perfect opportunity for an owner to become passive after filling all stations.
Ideally situated in a high traffic strip mall, the salon occupies 1,396 sq. ft. and is leased for $2,339 per month. The monthly rent also includes common area maintenance, with the salon in a coveted endcap spot.
Open from Tuesday through Saturday, the stylists are consistently booked out for over one month at any given time. As they have roughly 1,500 clients between them, walk-ins are hard to accommodate. A buyer would be able to seat more clients by fully renting.
Growth also exists in adding manicures and pedicures. A buyer could convert the salon to a commission or salary model to entice younger stylists, or share product sales with stylists to encourage more retail revenue.
For only 20% down ($13,000) a buyer would have a stylish, well-kept salon that is a great passive investment.