Sectors / Category

Annual turnover

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  • Mandate: 34794
  • Added: 19 Jul 2021
  • AFS
  • 383

Hair Salon with retail sales of hair products

Gauteng, Johannesburg
383
Mandate 34794
Added 19 Jul 2021
R 290,000* ZAR
Stock: R 0
Assets: R 290,000
Bill Tweedie
(PRINCIPAL)
Aldes Bedfordview
Gauteng, Edenvale
Gauteng, Edenvale
Summary

Hair salon with retail sales of hair products

SELLING PRICE AFS
R 290,000* ZAR
Stock: R0
Assets: R290,000
Summary

Hair salon with retail sales of hair products

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please supply us with your details below

Fully describe the business's activities?
Hair dressing salon with retail sales of hair products to clients in an affluent area. Seller wished to sell at asset value. Current turnover around R2m per annum

How long has the business been established?
26 years

How long has the owner had the business?
26 years

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 once 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?
No

Are there up-to-date Management Accounts available?
Not applicable but available to see turnover and margin trends

What Balance Sheet and Income Statements are available?
February 2021

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?
Seller wished to sell at asset value

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 %?
10%

What is the square meters of the business?
100m2

Do you require a licence?
No

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. List available to serious buyers

What is their overall condition?
Very good

How have they been valued ?
Owner valuation

Which assets are on lease/HP and with whom?
None

Are they presently insured?
Yes

Strengths?
Business is in a newly renovated premises with upmarket finishes - full set up already in place Coffee shop in same premises Business situation is close to affluent clientele Ample parking and access In previous residential area on a main road Clients support the retail side of the business Has been established for 26 years and has a loyal client base

Weaknesses?
Current COVID climate makes doing business difficult

Opportunities?
Attract more clients Increase retail offering

Threats?
Further lock downs

What is the reason for the sale?
Owner is emigrating

Why is this a good business?
A well established business set up. 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?
R290 000

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AGENCY DETAILS

Aldes Bedfordview

1 members
4 mandates
Gauteng , Edenvale
6 Putter Lane, Glendower Golf Estate, Marais Street, Dowerglen x 8, 1609
Edenvale

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