Fully describe the business's activities?
Traditional hair salon catering for all the needs of ladies and men.
How long has the business been established?
The business was established in January 1986
How long has the business been at its current address?
Business has been in the mall and at the same location for 18 years
How does the business operate on a daily basis?
Customers are serviced at a work station by her hairdresser. Receptionist takes care of all appointments and arrange the diaries of the hairdressers.
How are the clients attracted to the business?
Lot's of customers are attracted by "word of mouth ". Also "walk in" clients. Huge pool of existing loyal customer base.
What Advertising/Marketing is carried out?
In the local area the management of the mall does marketing. The salon has a Facebook page.
What competition exists?
We identified 3 other salons in the nearby area - mostly focused on ethnic hair products. There are lots of hairdressers.
What are the seasonal trends?
June & July show more turn over. November - December will also achieve better sales.
How did the Covid-19 pandemic impact the business turnover / daily operations?
During the months of April, May & June 2020 the salon was closed due to the Lockdown rules
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Sanitize Wearing of mask Health risk measurements, customer register
Is the business VAT Registered?
The Close Corporation is a registered VAT vendor
What VAT documentation is on file?
Documentation available from an accountant
Are there up-to-date Management Accounts available?
Up to date sales figures available
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Most payments via debit and credit card with little cash.
What is the age analysis of the debtors book?
No accountants. Customer pays same day
What is the total staff complement?
15 staff members
Give a breakdown of staff/ functions/ length of service?
1 x Receptionist - arranging all appointments 5 x Shampoo ladies - washing hair 2 x Hair Dresser - Owner & Daughter 7 X Qualified Hairdressers
Do any receive special perks or incentives?
Shampoo ladies on basic salaries Hair dressers are paid 50% commission on sales after deduction of product cost. The staff is also receive a 10 % commission on retail sales of products
Are they on contract?
Do any have management potential?
The owner is most satisfied with the receptionist
How involved is the Owner in running the business?
100% - The Owner is a Hair Dresser. Her income as a hair dresser is reflected separately as an income in our financial report
Any special arrangements for the staff related to the Covid-19 pandemic?
Hairdressers (and all staff) wear masks and attend to all Covid-19 regulations as required
When does the current lease end?
30th April 2022
Is there an option of renewal & what period?
There is a option to renew
What is the annual escalation %?
Annual escalation of 8%
What are the trading hours?
Monday to Friday 08h00 -19h00 Saturday 08h00 - 17h00 Sunday 09h00 - 17h00
What are the main assets of the business?
16 x Hair Dresser Stations Each station neatly furnished with Foot Stools, Salon Chairs, Framed Mirrors and electrical points. 13 x Hand Hairdryers 12 x Tint Bowls 30 x Tint Brushes 1 x Neatly designed Reception
What is their overall condition?
Very good. The salon looks professional and well looked after.
Do any require repairing?
None. The salon is well equipped.
How have they been valued ?
We've placed a value of R100 000 all the fixtures, fittings and furniture. Replacement cost (or newly setup cost) expected to be around R500 000.
Which assets are on lease/HP and with whom?
All assets are paid for.
In business since 1986. Established and loyal client base. Huge support from product suppliers
Working hours in accordance with lease agreement - mall requirements
Expand on sale of hair products
Staff retention - as per norm for this type of business.
What is the reason for the sale?
Owner and husband wish to retire. Owner is tired - been with business since 1986
Why is this a good business?
Well organized salon with a loyal client base. Established name supported by product suppliers
Annual Turnover Amount between R 500 thousand and R 6 million