Sectors / Category

Annual turnover

|
  • Mandate: 32107
  • Added: 31 May 2018
  • AFS
  • 282

Profitable well known niche hair salon in East London

Eastern Cape, East London
282
Mandate 32107
Added 31 May 2018
R 2,000,000* ZAR
Stock: R 180,000
Assets: R 0
R 65,837 ZAR
Grant Stuart
(PRINCIPAL)
Aldes Border
Eastern Cape
Eastern Cape
Summary

Extremely well known and established hair salon in East London. Been around for 46 years and catering to niche hair wellness and associated products. Situated in a busy shopping mall.

Profitable well known niche hair salon in East London
SELLING PRICE AFS
R 2,000,000* ZAR
Stock: R180,000
Assets: R0
R 65,837 ZAR
Summary

Extremely well known and established hair salon in East London. Been around for 46 years and catering to niche hair wellness and associated products. Situated in a busy shopping mall.

To gain access to more business info
please supply us with your details below

Fully describe the business's activities?
Business is that of a upmarket Hair salon. Clients generally book appointments for hair cuts, hair styling and the like. Includes hairdressers washing, cutting, coloring & blow-drying at separate stations. Hair styling products are also on sale to regular clientele or to the general public.

How long has the business been established?
46 years

How long has the owner had the business?
Since inception (1972)

How does the business operate on a daily basis?
New or existing clients make appointments for haircuts, styling or coloring treatment. Walk in customers are accommodated if possible. Clients can make enquiries via telephone/e-mail or their website/facebook pages

How are the clients attracted to the business?
Generally word of mouth or referrals. The hair salon also has it's own website & Facebook pagem which it uses to market.

What Advertising/Marketing is carried out?
Facebook & Website General mall advertising

Does the business have any contract work?
No, but does have loyal regular customer network.

What competition exists?
Lots of current hair salons in the area, but generally only 4 or 5 in the entire city compete with their level of service, range of products and professional pampering offered by this business...

What are the seasonal trends?
Fairly consistent throughout the year, but November & December are definitely the busiest months for Sales.

Is the business VAT Registered?
YES

What VAT documentation is on file?
All VAT records are on file

Are there up-to-date Management Accounts available?
Yes, latest to Feb 2018

What Balance Sheet and Income Statements are available?
Audited February 2018

What percentage of the business is cash/credit?
98% Cash/card

What is the age analysis of the debtors book?
7 days

How could the profitability of the business be improved?
By attracting/reaching out to the slightly younger more fashion orientated market

Is Seller finance available and for what amount?
Yes. Minimum 80% of the purchase price to be received as down payment, with the balance to be mutually negotiated over specific terms & conditions, according to Buyer centric circumstances.

What is the payback period?
30 Months

What is the ROI?
39%

What is the total staff complement?
16 (Including the owners)

Give a breakdown of staff/ functions/ length of service?
A list of staff is available on record. Many have bene with the business for a substantial period of time.

Do any receive special perks or incentives?
No

Are they on contract?
All permanent staff are on contract

How involved is the Owner in running the business?
100%

When does the current lease end?
June 2018, but the owner is currently negotiating a New lease with the Landlord

Is there an option of renewal & what period?
Yes - terms to be agreed with Landlord when old lease expires shortly.

What are the trading hours?
Monday - Friday : 8am - 5pm ; Saturday : 8am - 2pm ; Sundays/Public holidays : 9am - 1pm

Who is the Owner/Landlord?
National Landlord

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
2 Month's lease deposit required

What are the main assets of the business?
Salon furniture & fittings and computer equipment

Are any items not included in the sale?
No

What is their overall condition?
Good

Do any require repairing?
No, not at this stage, but regular maintenance and replacement does occur on hair cutting/styling equipment.

How have they been valued ?
Market depreciated value

Are they presently insured?
Yes, all assets are insured with a reputable insurer

Strengths?
Business has been around for 46 years and has stood the test of time ! Very loyal customer base who continue to support the salon regularly.

Weaknesses?
Same owners for many years, so they do carry a lot of knowledge + goodwill with them.

Opportunities?
To expand to another center to compete with others in their territories.

Threats?
Other niche upmarket salons opening up in the center or adjacent shopping areas

What is the reason for the sale?
Owner (74) and his wife wish to retire after a life in the hair industry.

Why is this a good business?
Fantastic 46 year heritage with very well known & respected name in the city - very loyal client base. Known by generations of customers.

What is the price plus stock and the net profit?
R 2 million (including Stock of R 180 000) Net profit of R 790 000 per annum before Members remuneration.

Other listings by Grant
R 10.90MZAR
Added : 25 Sep 2018 132
Yearly profit : R2,009,021
KwaZulu-Natal
R 9.00MZAR
Franchise
Added : 9 Sep 2018 1318
Yearly profit : R1,559,741
Eastern Cape
R 360KZAR
Added : 9 Sep 2018 1280
Yearly profit : R33,698
Eastern Cape
FRANCHISE DETAILS

Aldes Border

1 members
9 active mandates
Eastern Cape
4 Roderick Place, Bonza Bay
5241

Our experienced cross industry brokers are
waiting to assist and guide you…

Similar Businesses for sale

Discover similar, inspiring businesses for sale

R 1.03MZAR
Added : 21 Sep 2018 182
Yearly profit : R544,103
KwaZulu-Natal
R 1.80MZAR
Added : 17 Aug 2018 284
Yearly profit : R-260,283
Gauteng
R 1.13MZAR
Franchise
Added : 13 Jul 2018 255
Yearly profit : R480,128
Gauteng
R 1.40MZAR
Added : 4 Mar 2015 585
Yearly profit : R759,514
Western Cape

Businesses in Gauteng

Annual Turnover Amount between R 500 thousand and R 6 million

R 555KZAR
Added : 19 Oct 2018 10
Yearly profit : R288,000
Gauteng
R 1.31MZAR
Added : 17 Oct 2018 127
Yearly profit : R517,200
Gauteng
R 1.54MZAR
Franchise
Added : 16 Oct 2018 49
Yearly profit : R397,429
Gauteng
R 2.00MZAR
Franchise
Added : 11 Oct 2018 164
Yearly profit : R1,071,535
Gauteng
R 2.00MZAR
Franchise
Added : 4 Oct 2018 131
Yearly profit : R-22,597
Gauteng
R 935KZAR
Franchise
Added : 2 Oct 2018 160
Yearly profit : R34,593
Gauteng
R 450KZAR
Added : 1 Oct 2018 100
Yearly profit : R212,000
Gauteng
R 1.60MZAR
Added : 27 Sep 2018 313
Yearly profit : R945,485
Gauteng