Fully describe the business's activities?
The business operates as beauty salon for all genders. The owner rent out chairs in the Hair Salon & Nail Bar and until recently operates the Retail Store as a stand alone business. he however returned to full time employment and has decided to close the retail store as from 1 February 2019. The landlord have not replace her as a tenant yet so should there be a buyer interested in all 3 stores, it could be a possibility.
How long has the business been established?
The business/es is in the shopping centre since 2008.
How long has the owner had the business?
The current owner took over in 2016.
How does the business operate on a daily basis?
Doors open everyday from 08:00. The set up is such that there are 2 separate stores under the Salon name. The 3rd store was a retail store which the owner closed as from 1 February 2019. Currently there is only the hair salon, which has chairs rented by the stylists, and the 2nd store is the nail bar with 4 manicure and 2 pedicure stations and a massage room including eyelashes. Stores open at 08:00 till 18:00 .
How are the clients attracted to the business?
Besides the signage on the shopping centre, word of mouth from their satisfied customers. The centre is close to residential suburbs and in the heart of office parks, a lot of traffic comes from those who make use of the stores nearby and become aware of the salons.
What Advertising/Marketing is carried out?
There is an active website, and social media Facebook and Instagram accounts.
Does the business have any contract work?
Mostly walk in customers and appointments
What competition exists?
There is a nail salon in the centre, but there is no other hair salon in the immediate vicinity.
What are the seasonal trends?
The type of business generally peaks from October to December and is more or less stable for the rest of the year.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
We only have management accounts from January 2017 to December 2018 compiled by the seller.
What Balance Sheet and Income Statements are available?
No formal financial statements available.
What percentage of the business is cash/credit?
60% card purchases and 40% cash
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Additional marketing is required to fill all the chairs in the Hair & Nail salons as there is still capacity available.
Is Seller finance available and for what amount?
The seller wants cash for the business.
What is the total staff complement?
The business does not have any staff as they only rent out chairs in the hair and nail salons.
How involved is the Owner in running the business?
The owner occasionally spends time at the business, but is mainly responsible for the finances and has returned to her previous employment on a full time basis since the beginning of 2019.
When does the current lease end?
September 2019 for all 3 stores. (Retail store closed since Feb. 2019)
Is there an option of renewal & what period?
Yes there is an option for renewing the leases.
What is the annual escalation %?
What are the trading hours?
Mon - Sat 09:00 -18:00 Sun 09:00 - 14:00
What is the square meters of the business?
36sqm, 26sqm, 45sqm
Who is the Owner/Landlord?
Amitofo Developments (Pty) Ltd
Is a copy of the lease available?
There are 3 leases and all copies are available.
Do you require a licence?
There are no licences required.
What lease deposit and/or other surety is required?
This will be dependant on the landlord.
What are the main assets of the business?
Salon furniture and fittings, equipment, Nail furniture and equipment
Are any items not included in the sale?
All assets are part of the sale.
What is their overall condition?
Salon has been recently renovated, therefore condition is good. The chairs may need to be replaced.
Do any require repairing?
None need repairing
How have they been valued ?
With replacement values.
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?
Yes the owner has insurance.
The business is operating since 2008 and well known in the area. Staff are flexible and is willing to work any hour which suites their clients.
The staff rent chairs and therefore it is not easy for the owner to establish real income in the business.
A new payment system and management style can increase income for the owner. Marketing in the nearby office parks with specials can bring in contracts and regular customers and a guaranteed income.
Suppliers of products raising prices will result in the businesses prices increasing and reduction in people spending.
What is the reason for the sale?
The owner is involved in other business ventures and projects and feels that the business does need someone more active and present, for it to reach its maximum potential. The owner returned to her previous position in the corporate environment as from the beginning of January 2019.
Why is this a good business?
This business is fully set up for success. The retail store creates a good balance for that day to day income. It is easy to upsell because of all the services available. There is also a good social media footing and location is excellent for growth.
What is the price plus stock and the net profit?
The owner is asking R600 000 plus stock of R90 000 average. Net profit for the last 12 months average
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