Fully describe the business's activities?
The business operates as beauty salons all genders. The owner rent out chairs in the Hair Salon & Nail Bar and only operates the Retail Store as a stand alone business.
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 3 separate stores under the Salon name. There is a retail shop with different hair and beauty products on sale, there is the hair salon, which has chairs rented by the stylists, then the 3rd 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 and may open till late depending on the customers, especially in the hair salon some stylists may still be busy.
How are the clients attracted to the business?
Besides the signage on the shopping centre, the business has a lot of word of mouth from their satisfied customers. The centre is near to a suburb 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 or retail store other than a Checkers.
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 September 2018.
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. The retail store needs a totally different focus as it is not generating sufficient income at this stage. It was doing reasonably well until the landlord closed the passage next to the store and changed it into a coffee shop which is anyhow closed by now. This caused the big display window to be lost and turnover declined steadily since then. New products or services must be introduced to makes it profitable again.
Is Seller finance available and for what amount?
The seller wants cash for the business.
What is the total staff complement?
1 Manager for the retail store as the other beauticians are not employed but just renting space/chairs.
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
There is currently 1 assistant/manager in the retail store.
How involved is the Owner in running the business?
The owner occasionally spends time at the business, but is mainly responsible for the finances.
When does the current lease end?
September 2019 for all 3 stores.
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 things 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 has nearly an entire floor in the centre, therefore dominant . The different stores offer different services, which creates a friendly warm environment for what a customer is there specifically to do. Also can be seen as a one stop for all beauty needs. The owner is constantly getting in touch with new suppliers and the business always is up to date with the current trends.
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. She is also well qualified in die medical field and is considering entering the corporate work space again.
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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