Fully describe the business's activities?
Beauty salon is situated in a popular and busy center in Pretoria East. The owner rebranded the salon two years ago and has a stylish, up-market beauty studio with great potential to expand. The salon offers various services, products, massages, and general routine beauty treatments. They have recently introduced new services such as dermapen and laser which is performing very well. They have a strong customer base and situated in a excellent area close to all main attractions, schools, hospitals and business parks. The salon is very popular and has the unique platform in offering their services in an convenient App on your smart phone. The App allows you to schedule your appointments, view their services and special offers. BIG opportunity to franchise this unique store.
How long has the business been established?
The business has been established for over 15 years.
How long has the owner had the business?
The owner bought the business in 2016.
How does the business operate on a daily basis?
The owner is involved in the general management of the business. She has a fantastic team working for her great management in place.
How are the clients attracted to the business?
The business has a supportive and loyal clientele, word-of-mouth and the usual walk-in clients.
What Advertising/Marketing is carried out?
The business is very active on social media, they have their own website, interactive smartphone App, SMS marketing and Google Adword campaigns.
What competition exists?
No direct competition in the centre or in the area.
What are the seasonal trends?
August through to December is a very busy time for the salon. During winter times the business slows down.
Is the business VAT Registered?
Yes, the business is a VAT-vendor.
What VAT documentation is on file?
The VAT documentation is available form the accountant.
Are there up-to-date Management Accounts available?
Yes, we can provide an interested buyer with the last 12-months management figures.
What Balance Sheet and Income Statements are available?
The business accountant is busy preparing the Financial Statements for the business.
What percentage of the business is cash/credit?
The business is 30% cash sales and the remaining card.
How could the profitability of the business be improved?
The owner recently expanded their services to include laser treatments. This is a service which is in high demand and can increase the business turnover emmensely.
Is Seller finance available and for what amount?
This can be negotiated with an interested buyer this will. This will depend on the up-front deposit.
What is the total staff complement?
The total staff compliment is currently 3.
Give a breakdown of staff/ functions/ length of service?
3 x Beauty therapists focusing on all other treatments and services. (Includes the manager)
Do any receive special perks or incentives?
All staff receive a basic salary and the owner has a commission structure in place to drive product sales and services.
Are they on contract?
Yes, all staff are on contracts.
Do any have management potential?
Yes there is a manager in place and the owner is very pleased with her performance.
How involved is the Owner in running the business?
The owner has relocated and she is not able to be at the business on a daily basis. She is mostly involved in the general management, marketing, and growth of the business.
When does the current lease end?
The current lease ends in 2022. She also has an opportunity to move the business into a new development in the area.
Is there an option of renewal & what period?
Yes, there is an option to renew for 5 years.
What is the annual escalation %?
Annual escalation is 9%
What are the trading hours?
Monday - Friday 07:00 - 18:00 Saturday - 09:00 - 13:00 Closed on Sundays.
What is the square meters of the business?
Total of 55 sqm.
Is a copy of the lease available?
Yes, this can be provided.
Do you require a licence?
What lease deposit and/or other surety is required?
The landlord requires a 3-month lease deposit.
What are the main assets of the business?
The owner will provide an interested buyer with a full asset list.
Are any items not included in the sale?
The owner has recently bought a brand new Laser Machine (value R1.4 million) this is currently excluded in the purchase price. It can be negotiated to either include or exclude from the sale.
What is their overall condition?
Everything is in an excellent condition the owner recently re-branded and revamped the whole salon
How have they been valued ?
Owners valuation has been used.
Which assets are on lease/HP and with whom?
Are they presently insured?
Yes, the business has comprehensive business insurance.
- Newly revamped, trendy and up market salon; - Provide an array of different services and specialised skin care treatments and ranges; - Established salon with a loyal clientele and a substantial database that can be used for additional marketing; - Great location and no competition in the area. - Flexible hours for the owner.
The salon does not have their own bathroom and uses the centres bathroom.
- Add an additional product range; - The possibility to expand the salon to add more rooms and a bathroom; - Opportunity to franchise the upmarket, trendy salon; - Laser machine was recently implemented and this service is in high demand and can grow the Turnover extensively.
What is the reason for the sale?
The owner and her family has relocated and is not able to be at the businesses on a daily basis.
Why is this a good business?
The business is located in a great area, popular centre in Pretoria East with no direct competition in the area. The business has a loyal customer base, offering specialised treatments, products, and services from qualified therapists. The current owner has put systems in place in order for the business to run with limited owner involvement. Excellent opportunity for someone in the industry or an entrepreneur.
What is the price plus stock and the net profit?
The selling price plus stock is R1 400 000 excluding Stock with an average Net Profit of R57 000 per month. This selling price excludes the Laser machine worth R1.4 million. This can be negotiated to eaither be included or excluded in the sale.
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