Fully describe the business's activities?
Franchised Hair and beauty salon offering complete makeover in sophisticated traditional salon - hair, nails, eyelash and eyebrow treatments offered.
How long has the business been established?
The owner started the business 7 years ago.
How does the business operate on a daily basis?
The business is opened and closed daily by the staff and services clients by appointment as well as walk in clients
How are the clients attracted to the business?
The business is situated in a busy mall in the North of Pretoria.
What Advertising/Marketing is carried out?
Social media & inside Mall Adverts
What competition exists?
One other salon in the Mall
What are the seasonal trends?
The business is fairly stable with no real noticeable trends.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Owner has provided us with management accounts from March 2018 until December 2019
What percentage of the business is cash/credit?
No credit - 100% Cash
How could the profitability of the business be improved?
By carrying more stock the business can provide more variety to clients and sell more retail items.
What is the total staff complement?
2 Permanent and 8 commission based for 8 years
Give a breakdown of staff/ functions/ length of service?
2 receptionists and store managers 8 stylists (1 to 5 years)
Do any receive special perks or incentives?
Salaries are determined by the amount of time spent per client
Are they on contract?
2 receptionists are permanent 5 Stylists are on a 12 month renewable contract
Do any have management potential?
Yes, the two receptionists
How involved is the Owner in running the business?
Owner is employed full time and only manages the business accounts.
When does the current lease end?
In 2 years
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
9:00 to 19:00
What is the square meters of the business?
Who is the Owner/Landlord?
What lease deposit and/or other surety is required?
3 times the monthly lease
What are the main assets of the business?
Salon setup Equipment Staff
Are they presently insured?
The business is established in a busy mall Well trained staff Location Franchised store - owner thus available to train and assist where necessary
Owner is not involved Not enough cash flow to carry more stock
Carry more stock to offer more services and retail items.
None were identified
What is the reason for the sale?
Owner does not have enough time to spend on the business.
Why is this a good business?
The business is capable of operating with limited owner involvement.
What is the price plus stock and the profit?
Selling price of R850 000 + R150 000 Franchising Fee including stock of R100 000
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Annual Turnover Amount between R 500 thousand and R 6 million