Fully describe the business's activities?
The business consists of 2 Caucasian hair salons, operating under a well known international brand. Salons have both been operational for over 10 years. Trading Mon- Sat from very stylish and elegant premises. 1 salon has lots of spare capacity and recruiting more staff is advised. Both salons in affluent areas with high LSM clients.
How long has the business been established?
Over 10 years
How long has the owner had the business?
Owners have had 1 salon for 5 years the other for 1 year.
How does the business operate on a daily basis?
Due to age of salons there is a very high number of repeat clients. The position of 1 in a centre also allows for lots of walk past, whilst the other needs more marketing in the area.
How are the clients attracted to the business?
Salons have won awards, age of business and some marketing, location of salons
What Advertising/Marketing is carried out?
Limited and with word of mouth
What competition exists?
There are a limited number of competitors. The products sold and used is a draw card from other salons.
What are the seasonal trends?
Business is stable
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
Mostly card with some cash
How could the profitability of the business be improved?
MOre marketing, more staff
What is the total staff complement?
16 very well trained, long serving, award winning
How involved is the Owner in running the business?
Owner oversees operations.
When does the current lease end?
Leases expire 2021 and 2023
Is there an option of renewal & what period?
Yes, at tenants proposal
What is the annual escalation %?
7 & 8%
What are the trading hours?
Mon - Sat 8-5 and 2nd salon 9-6
What is the square meters of the business?
85 m2 and 112m2
Is a copy of the lease available?
What are the main assets of the business?
High quality operating assets, aircons, fixtures, chairs etc.
What is their overall condition?
Well established, professional staff, awards won, established client base, good areas
Grow business via social media, more staff, more marketing
Other salons opening
What is the reason for the sale?
Why is this a good business?
Well established, trained staff, locations excellent
What is the price plus stock and the profit?
R700k plus stock
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