Fully describe the business's activities?
Body Care Beauty Salon is a traditional beauty salon that focuses on slimming but also provided treatments such as : manicures, pedicures, waxing, massages, acrylic and gel nails, spray tanning and piercings.
How long has the business been established?
This salon was established in 2005.
How long has the owner had the business?
The owner has had the business since 2014.
How does the business operate on a daily basis?
A manager open and closes the business daily. She manages the daily operations as well as client appointments and sales.
How are the clients attracted to the business?
The range of services offered to the clients and quality of expert service offered to the clients attract their clients. This salon has a client base of more than 8000 clients.
What Advertising/Marketing is carried out?
They distribute flyers and posters on a monthly basis. Established social media platforms = facebook and instagram.
What competition exists?
None that we know of in the area.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The pandemic did have an impact on the business. The turn over currently is around 75% of normal turn over, and shows a steady monthly growth of 10%.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Fix cost payments have been renegotiated. Lower rent payments have also been negotiated.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
ESP industry salon management system.
What percentage of the business is cash/credit?
Card transactions for 90% of the business income.
Is Seller finance available and for what amount?
What is the total staff complement?
There are currently 3 permanent staff and 1 part-time staff members.
Give a breakdown of staff/ functions/ length of service?
The staff have been newly appointed and trained after lockdown. They are all qualified in their fields.
Do any receive special perks or incentives?
Yes - commission is paid when targets are reached.
Are they on contract?
Do any have management potential?
Yes - the current manager.
How involved is the Owner in running the business?
The Owner is in daily from 9:00 to 13:00 to oversee the running of the business.
Any special arrangements for the staff related to the Covid-19 pandemic?
Staff were retrenched before lock down. The industry was closed for 3 months.
When does the current lease end?
The current lease has 2,5 years remaining.
Is there an option of renewal & what period?
Yes, for another 3 or 5 years.
What is the annual escalation %?
What are the trading hours?
Monday, Wednesday and Friday from 8:00 to 17:00 Tuesdays and Thursday from 8:00 to 15:00 Saturday from 8:00 to 15:00 Closed on Sunday
What is the square meters of the business?
71 Square meters.
Is a copy of the lease available?
Yes, on request.
Do you require a licence?
Only trading license from the local municipality. Registration with the bargaining council.
What lease deposit and/or other surety is required?
2 Months in advance.
What are the main assets of the business?
Fixed assets and equipment worth R150 000. Stock holding is on average R30 000.
Are any items not included in the sale?
Sold lock stock and barrel.
What is their overall condition?
Very well maintained.
Do any require repairing?
None. Beds are serviced/repaired every 18 months.
How have they been valued ?
Owners valued at R200 000.
Which assets are on lease/HP and with whom?
This business is firmly anchored in a higher income residential area. Has been operating from the same center for more than 15 years. Ideal for the type of clients they target. This salon has a client base of more than 8000 clients. Has no real formal competition in the area.
The covert 19 had a negative impact on the whole industry and yearly turnover is down but picking up.
Several salons closed due to the covid-19 pandemic. These clients are now seeking alternatives. Digital marketing on social media will attract clients to the salon. Retirement Village opposite the center will launch soon, attracting new potential clients to the business.
Potential threat of second covid-19 lockdown.
What is the reason for the sale?
The seller had small children and would like to spend more time with them.
Why is this a good business?
Well established business of 15 years within the industry. Over 8000 clients using their service. A accommodating landlord with the current pandemic.
What is the price plus stock and the profit?
Selling price R330 000. Stock R30 000. Average Profit R26 799 p/m.
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