Fully describe the business's activities?
A well organised Unisex Hair Salon providing professional services in hair styling , hair care advise , hair solutions regarding hair loss & hair growth to address clients specific needs & requests. Retail products to support the hair care process is stocked & sold on the premises .
How long has the business been established?
Approximately 12 yrs
How long has the owner had the business?
The owner initiated the business 12 years ago.
What is the average KW usage ?
The business owns a generator . Consumption is only applicable in times of electricity outages in the mall. This happens seldom in recent years however with the generator the business can continue its normal operations .
How does the business operate on a daily basis?
The Salon has regular patrons to the business . Visitors to the center from different places frequent the salon without appointments. Some clients book an appointment , some visit when they have time or passing by . The salon has service club clientele that enjoy a new look each morning before work.
How are the clients attracted to the business?
The salon is superior in respect of professionalism and unique products. Product prices is substantially negotiable as the salon has its own range of professional salon products. The price is affordable , friendly & professional service.
What Advertising/Marketing is carried out?
Social Media is the driver in our new age business world. Facebook local -the current client database of approximately 4000 clients. Facebook marketing on its national database advertising the salons various product ranges & boasting the Salon as one of the TOP 20 countrywide . Among the direct marketing adverts via sms , the automatic app booking interface, as well as the paid Facebook option
What competition exists?
Salons in the local area. Each Salon has its own unique brand and mostly clients visit their favorite hairdresser . Competition is good for business and keeps the service standards high .
What are the seasonal trends?
There is a distinct trend in what people need in summer versus winter. School holidays , Festivities , Weddings & Matric farewells have a positive impact on the business.
Is the business VAT Registered?
Yes according to legislation requirements
What VAT documentation is on file?
Documentation with Accountant
Are there up-to-date Management Accounts available?
The business operates on a 4POS system , my salon software and Booksy
What Balance Sheet and Income Statements are available?
How could the profitability of the business be improved?
There is substantial scope for growth, in terms of new services, in addition to the option of obtaining the supply company ajoined to the main business. This sister company currently holds various contracts for sole distribution in the Mpumalanga area, which makes the supply of products to the salon an additional 30% more lucrative than any other salon trading in the same products. In addition, If the salon cannot increase the volume of clientele, it is always good to know that there is a means to tapping into the profits of competitors by supplying to them
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
General workers, apprentices, junior stylists, senior stylist and marketing
Do any receive special perks or incentives?
Staff receive a basic salary & commission on targets reached and retail products sold 30% on service 10% on products
Are they on contract?
All on staff contracts which is renewed every six months
Do any have management potential?
3 Staff members has SETA bursaries and have received appropriate training in hair styling but will also receive the mentorship for management if the need arises.
How involved is the Owner in running the business?
100% Owner operator. The Owner was born with a natural skill & artistic flair for hair & beauty . She pursued her career and passion more aggressively and the results can be seen in the profits and client base of the business. It remains a pertinent point for the new Owner to have some knowledge of products and hair in order to be in control of stock and management of the business. This salon is a training facility for SETA and currently have 6 students of which two is employed with SETA bursaries
When does the current lease end?
Is there an option of renewal & what period?
Yes 3-5 years entirely negotiable with the LANDLORD
What is the annual escalation %?
CPA - inflation linked
What are the trading hours?
Trading hours are : Monday -Thursday 8am -6pm Fridays 8am -7pm Saturday 8am-5pm Sunday 10am-3pm Closed on public holidays like Easter , Christmas , New year
What is the square meters of the business?
Is a copy of the lease available?
Yes -available to serious buyers the Lease is registered in a Close Corporation
Do you require a licence?
A qualified Hairstylist would be ideal If not a good business driver and manager with knowledge of hair salon products and hair care
What lease deposit and/or other surety is required?
R80000-00 in deposit held with Landlord The option exists for the Buyer to take over the current lease signed with the CC until 2020 , thereby keeping the rental deposit in full force and effect. The Seller will grant this extra benefit to the Buyer or alternatively the Buyer can sign a new lease with new deposits and receive it back at lease term end or resale of business . Terms and conditions to be discussed with the Landlord
What are the main assets of the business?
Asset list is on file & available to serious buyers A generator is included and only applicable in times of electricity outages Suntan - Tancan is on premises for the ladies wishing to add colour into their lives
Are any items not included in the sale?
only items of sentimental value and personal nature
What is their overall condition?
satisfactory and well maintained .
Do any require repairing?
Certain Assets require ongoing repairs & maintenance & keeps the business operations flowing smoothly
How have they been valued ?
Depreciated Value & Insurance Value
Are they presently insured?
Strengths - 1. well established for many years 2. proven profitability 3. excellent location 4. unique hair care products and hair growth products for retail purposes 5. affordable and available 6. training center 7. popular well known branded products
Long hours The business requires two operators to manage the times & long hours together
Opportunities 1. Ethnic hair products 2. Brazilian Hair pieces & Wigs - quite popular in 3. Braiding
What is the reason for the sale?
Owner is relocating
What is the price plus stock and the net profit?
R1.4 million including assets including stock on hand ( retail ) to be determined on day of hand over including consumable stock ( dyes , perming lotions , shampoos etc ) to be determined on day of handover The linked CC owns a property at another location and the option is there for the buyer to Purchase it and receive a passive monthly rental . The property price is R670 000 , size is 110m2. To be discussed with serious buyers .
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