Fully describe the business's activities?
R146 000 t/over in July 2020 !! Top class Salon within a major Durban suburban Mall in Outer West. Full hair services for women & men. The owner set the business up in Aug 2019, with the first operational month being Sept 2019. She began as one of the two hairdressers, with another joining in Dec & March, which allowed her to withdraw mainly to a management level in Feb/March; as she finalised an overseas position & emigration plans (only contributing 10% to turnover).
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Yes MA's are produced monthly. All info is produced from USA Schedule (a Web based system) - bookings - time/stylist/services - check-out & form of payment â printed receipts. All this corresponds to the Bank & Cr Card statements. R146 000 t/over in July 2020 so in a 12 month period it should meet/exceed R900 000 NP for an operating 12 month period.
What is the total staff complement?
3 stylists (comm only) & 2 washers - (excl owner who did some 10 % of turnover in March). All the staff cover the reception as well. A cleaner is also employed although probably not necessary.
Glass fronted shop positioned close to one of the main entrances of a good Outer West suburban Mall. The rental is some R14 000pm with some R3 000pm of cleaning, aircon, elect & water charges. The rental deposit is presently some R42 000.
What are the main assets of the business?
The main assets are the fittings & accessories, which were purchased new last year. The total cost was some R235 000.
Well positioned new salon with top finishes & computerised system, Established clientele on new & changing staff (ie not tied to the seller)
New business, but with such a promising start the future can only be positive
Bring in your own expertise or clientele into this newly established profitable salon
That other salons enter this Mall - although unlikely since there is no space available That following Covid-19 turnovers drop - although unlikely since haircuts are pretty much a necessity & the past figures were from a start up - Zero - point, obtained very quickly, all while an owner withdrew her portion of services.
What is the reason for the sale?
Owner emigrating once the Salon sold or manageress takes over
What is the price plus stock and the profit?
The Sale Price is R 1.76m excl stock of some R37 000, off a Net Profit attained in it's first 6 months of R487 000 (which indicates that potentially some R900 000 - 1m should be made within a full financial year). R146 000 t/over in July 2020.
Annual Turnover Amount between R 500 thousand and R 6 million