Fully describe the business's activities?
Nail & Beauty Salon. Main Focus Nail Enhancements, Manicures & Pedicures. Treatment Room for Waxing, Eyelash Extensions, Facials & Massages & some Retail.
How long has the business been established?
6 Years - 2nd April 2018
How long has the owner had the business?
6 Years - 2nd April 2018
How does the business operate on a daily basis?
Staff arrives at 08h30 - Treatments commence from 9h00. All staff are involved in answering phone, making bookings, treatments, handling of payments as well as cleanliness of salon.
How are the clients attracted to the business?
Prime location busy Shopping Centre â Foot traffic. Promotions displayed Recent new loyalty program on Head Start program. In the past number of years Good Staff - building relationships.
What Advertising/Marketing is carried out?
Promotions from Head Office and Salon promotions communicated via email to clients. Head Office responsible for marketing.
Does the business have any contract work?
What competition exists?
Another Studio is in same center - Their main focus being Facial Treatments done by Beauty Therapists with equipment âwe belong to same group under different brand names
What are the seasonal trends?
Spring & Summer busiest months âWinter quietest due to Pedicure treatments slowing down â but then focus on other promotions.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
2017 and last trading quarter
What percentage of the business is cash/credit?
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
A Qualified Beauty Therapist dedicated to Facials and other beauty treatments to increase Retail. Training of the Nail Technicians newly employed in new techniques & products offered by Head Office. Train Nail Technicians to improve retail skills.
Is Seller finance available and for what amount?
What is the payback period?
What is the ROI?
Who is the bookkeeper/Accountant?
Natalie Ansley ACME - CGMA
What is the total staff complement?
2 Nail Technicians & 1 Beauty Therapist temp
Give a breakdown of staff/ functions/ length of service?
All relatively new with 5 months and under service
Do any receive special perks or incentives?
Are they on contract?
They where on fixed term contracts to see whether Maternity staff would be returning however new staff have to put them on permanent contracts soon.
Do any have management potential?
How involved is the Owner in running the business?
Very involved in the running of the business but due to not coming from Beauty Industry and the limited size of the salon - not in the salon most of the time â One of the reasons for selling â Business will do well with owner passionate or trained in beauty who spends time in salon.
When does the current lease end?
3 year lease signed at a time. 2 more years left on lease. April 2020
Is there an option of renewal & what period?
Yes every 3 years.
What is the annual escalation %?
Varies approx 8%. Head Office negotiates with Landlord when the time comes to renew.
What are the trading hours?
Mon to Fri 9h00 to 18H00 Sat â 9h00 to17h00 â (optional to close at 14h00) Closed on Sundays however optional to be open.
What is the square meters of the business?
Who is the Owner/Landlord?
Garden Cities NPC (RF) Registration No: 1928/000607/08
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
Current Lease Deposit R16 930.43 Eskom Deposit R6174.73
What are the main assets of the business?
Treatment tables and retail display units
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
General Repairs may be required on some items
How have they been valued ?
Per Depreciated values to BS
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Existing Franchise â 6 years Great Location â Foot traffic Franchise loyalty program â recent introduction â room for growth Neat salon - Easily accessible -Parking close / shopping Woolworths etc
SLosing some long-term staff members at the same time. New staff - need more training and supervision. Size of salon can become a weakness during busy periods in eg December Limited space for retail in salon Size of salon could be weakness however always room for growth with opportunity for larger shop in current Shopping Center.
Room for growth with opportunity to take larger premises in current Shopping Centre. Expanding with Qualified Beauty Therapist/New Owner working in the salon being the face of the business. Expanding with Qualified Beauty Therapist/New Owner working in the salon being the face of the business. Ongoing training available by Head Office Training Centre
New Staff not trained adequately. New staff - handling of cash etc. Need security cameras and or new Owner or Manager to work in salon to supervise and develop the staff.
What is the reason for the sale?
Parents in frailcare since beginning 2017 and taking up much of sellers time and financial resources. Cash flow. .
Why is this a good business?
You can see the turnover growth over the years. Itâs a small salon in a great location. With the correct staff and owner/manager it has proved to be a good business. Ladies will keep coming back if the treatments are of a high standard and the staff professional and friendly.
What is the price plus stock and the net profit?
R562,000.00 inclusive stock & NOP
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