Fully describe the business's activities?
Hair and Beauty Salon. Owner plus two employees provide all hair treatments, waxing and G5, facials and pedicures as well as manicures.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
This business is closed on Mondays. The Owner supported by two staff members run the salon.
How are the clients attracted to the business?
Local print media.
What Advertising/Marketing is carried out?
The salon holds promotions periodically.
Does the business have any contract work?
Not signed agreements but they do the hair and treatments for a few of the major fashion retailers in town.
What competition exists?
There are numerous similar salons in town, but each has its own regular clients and following.
What are the seasonal trends?
All businesses in this town are affected by the seasonal changes, and it is necessary to be prepared to manage the summer demand to provide for the winter quiet periods.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
Cash only business.
How could the profitability of the business be improved?
Introduction of credit card facilities. Introduce hair extensions. Link up with local wedding planner and old age homes as additional opportunities.
What is the total staff complement?
2 plus Owner.
Give a breakdown of staff/ functions/ length of service?
One staff member has over 12 years experience, the other has less experience but offers additional services.
Do any receive special perks or incentives?
Christmas bonus at Owners discretion.
Are they on contract?
Normal conditions of employment.
How involved is the Owner in running the business?
When does the current lease end?
Is there an option of renewal & what period?
Yes, on a yearly basis.
What is the annual escalation %?
8 % year one then 6%.
What are the trading hours?
Tuesday to Fridays 09-00 to 4-30. Saturdays 09-00 to 2-00 pm.
Who is the Owner/Landlord?
Is a copy of the lease available?
Yes, on record.
What lease deposit and/or other surety is required?
What are the main assets of the business?
Salon furniture and fittings.
Long established on Main Road through village. Offer a range of beauty related services. Has loyal client base.
Premises cannot be extended.
Extend range of services offered.
No threats known of.
What is the reason for the sale?
The Owners wife runs the salon on a daily basis handling all the management responsibilities. She feels that she is at an age where it is preferable to slow down and let new and young blood take over the business.
Why is this a good business?
It is a good business for somebody who wants to keep busy but enjoy the coastal life that this holiday town offers.
What is the price plus stock and the net profit?
The price is R540,000 and the average monthly profit is in the region of R21,000. Stock on hand averages R30,000.
Annual Turnover Amount between R 500 thousand and R 6 million