Fully describe the business's activities?
Beautiful Salon in Centurion for sale. This business is ideal for someone in the industry to take over an existing database or for an entrepreneur The salon has 3 treatment rooms, 3 nail stations, a double pedicure deck, reception, and kitchenette. The salon is located in a beautiful shopping center, next to an anchor tenant. Income and expenses based on 2018/2019 figures. Currently no staff in place.
How long has the business been established?
The owner started the business in 2013.
How does the business operate on a daily basis?
Currently, the owner is the only staff member employed in the business. The salon has a wide variety of services offered: - waxes; - nails; - massages; - facials; - Dermapen - Men's grooming. This is a blank canvas for an entrepreneur to run their own salon, employ trained staff members as the owner had before. You can also rent out the space to therapists with their own business.
How are the clients attracted to the business?
The business is situated in a popular strip mall next to an anchor tenant, close to residential complexes and office blocks. They have a database of more than 1700 clients who have visited the salon in the last couple of years.
What Advertising/Marketing is carried out?
They have a Facebook page, website and has recently done a very successful digital marketing campaign which increased their bookings immensely.
What competition exists?
There is no immediate competition in the center.
What are the seasonal trends?
By industry norm, winter tends to be the quietest.
Is the business VAT Registered?
What Balance Sheet and Income Statements are available?
The owner provided us with the last 6-years income statements
How could the profitability of the business be improved?
Currently, the business is a blank canvas with lots of opportunity depending on the buyer's preference. The new owner can either employ new staff members to service the current client base; Or, adopt the "rent-a-chair" model and lease out the treatment rooms and nail technician stations. There great potential to build this business with the current low overheads and existing database.
What is the total staff complement?
Currently, the owner is the only person performing treatments and generating an income. Previously the owner employed 3 full-time therapists, 1 nail technician, and a receptionist.
How involved is the Owner in running the business?
The owner is 100% involved in the daily operations of the business.
When does the current lease end?
Current lease ends February 2021.
Is there an option of renewal & what period?
There is an option to renew for another 3 years.
What is the annual escalation %?
What are the trading hours?
Sun - Mon: Closed Tue - Thurs: 09:00 - 17:00 Fri: 08:00 - 15:00 Sat: 08:00 - 14:00 (Currently the owner is at the business only 4 days a week)
What is the square meters of the business?
Is a copy of the lease available?
What lease deposit and/or other surety is required?
One months rental is required.
What are the main assets of the business?
The full asset list is available for perusal.
Are any items not included in the sale?
Everything will be included in the sale.
What is their overall condition?
Everything is in a good and working condition.
How have they been valued ?
Owners valuation has been used.
Which assets are on lease/HP and with whom?
Are they presently insured?
Yes the business has insurance.
- Favorable lease agreement; - Great location; - Large database - The business has a good reputation in the area; - Beautiful salon with all the necessary equipment required to run a highly profitable salon.
- Currently no staff employed
- Rent-a-chair option; - Employing staff members.
What is the reason for the sale?
The owner wants to focus on another business opportunity she's received.
Why is this a good business?
This opportunity is ideal for someone from the industry wanting to start their own business or an entrepreneur to take this business to a highly profitable salon in an excellent area. This business has a very favorable lease agreement and is located in a popular strip mall.
What is the price plus stock and the profit?
R315 000 (inclusive of stock) with an average net profit of R25 000 (based on February 2019 figures)
Annual Turnover Amount between R 500 thousand and R 6 million