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?
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?
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?
What is the age analysis of the debtors book?
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?
What is the ROI?
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?
Are they on contract?
All permanent staff are on contract
How involved is the Owner in running the business?
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?
Is a copy of the lease available?
Do you require a licence?
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?
What is their overall condition?
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
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.
Same owners for many years, so they do carry a lot of knowledge + goodwill with them.
To expand to another center to compete with others in their territories.
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.
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