Fully describe the business's activities?
Hair dressing salon with retail sales of hair products to clients
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Clients book for hair appointments and are serviced by experienced hair stylists. Clients purchase hair products from in store retail services
How are the clients attracted to the business?
Clients tend to support their hair stylist. Word of mouth generates new clients.
What Advertising/Marketing is carried out?
Word of mouth
What competition exists?
Other hair salons in the area
How did the Covid-19 pandemic impact the business turnover / daily operations?
Impact was negative due to lock down rules enforced by the government. Clients tended to return was lock down rules were eased.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Fill PPE protocols are enforced at the salon
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Business is 20% cash, and 80% credit card purchases
How could the profitability of the business be improved?
Continuous lock downs have had a negative impact on the business. Once the pandemic is under control, business should return to normal
Is seller open to negotiation regarding other sale options eg assets?
Yes, seller is open to various options that make sense and facilitate both the buyer and seller
What is the total staff complement?
12 permanent and 3 contract workers
Give a breakdown of staff/ functions/ length of service?
Available as part of due diligence
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
Yes. When owner was away for a month due to COVID, the business was run seamlessly by management staff
How involved is the Owner in running the business?
On a day to day basis
Any special arrangements for the staff related to the Covid-19 pandemic?
When does the current lease end?
Current lease is on a month by month basis
Is there an option of renewal & what period?
Yes, a 5 year lease can be negotiated
What is the annual escalation %?
What is the square meters of the business?
Do you require a licence?
What lease deposit and/or other surety is required?
Lease deposit of 2 times the monthly rate of approx R20k
Who is the current landlord
Kamcay Properties (pty) Ltd
What are the main assets of the business?
Stock, TV's, Coffee machine, Chairs, Basins, fixtures, mirrors, cupboards etc
What is their overall condition?
How have they been valued ?
Per audited financial statements
Which assets are on lease/HP and with whom?
Are they presently insured?
Business is in a newly renovated premises with upmarket finishes Business situation is close to affluent clientele Ample parking and access In previous residential area on a main road Clients the retail side of the business Has been established for 26 years and has a loyal client base
Current COVID climate makes doing business difficult
Attract more clients Increase retail offering
Further lock downs
What is the reason for the sale?
Owner is emigrating
Why is this a good business?
A well established business with loyal clientele. Salon is situated in close proximity to an affluent suburb and clients support the retail offerings
What is the price plus stock and the profit?
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Annual Turnover Amount between R 500 thousand and R 6 million