"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The Hair salon offers a higher standard of hairdressing, satisfied clients and passionate stylists with a complete range of hair salon treatments and affordable blow-dryâs in a relaxed, upmarket environment. The range of specialized treatments include gorgeous locks, Cuts, Colour, Brazilians, Braiding not to mention the more targeted treatments like Brazilian blowouts. The company also has a team of nail technicians and trained skin therapists that offer come of the best beaty treatments in Johannesburg.
How long has the business been established?
10 years
How long has the owner had the business?
4 years
How does the business operate on a daily basis?
Mon-Fri: 07:00 â 18:00 | Sat: 08:00 â 17:00 | Sun: 09:00 â 15:00
How are the clients attracted to the business?
Online marketing
Situated in a high-end luxury centre
Word of mouth
Strong existing client base
What Advertising/Marketing is carried out?
Via social media and in signage
What competition exists?
None in the existing centre
What are the seasonal trends?
Winter months are less busy
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Yes, will be disclosed during due diligence
Are there up-to-date Management Accounts available?
Yes, will be disclosed during due diligence
What Balance Sheet and Income Statements are available?
Yes, will be disclosed during due diligence
What percentage of the business is cash/credit?
100% cash
How could the profitability of the business be improved?
Appointing additional stylists
Online marketing spend increase
Is Seller finance available and for what amount?
No
What is the total staff complement?
24 staff
Give a breakdown of staff/ functions/ length of service?
Will be disclosed in detail during DD - however the staff are highly trained and we have enjoyed low turnover and very loyal staff.
Do any receive special perks or incentives?
Yes, there is a commission structure to incentivise sales
Are they on contract?
Yes all on contract
Do any have management potential?
Yes
How involved is the Owner in running the business?
3-5 days a week
When does the current lease end?
2024
Is there an option of renewal & what period?
yes, currently under negotiation
What is the annual escalation %?
TBC
What is the square meters of the business?
100 sqm
Is a copy of the lease available?
Yes, will be disclosed during due diligence
What lease deposit and/or other surety is required?
R120,000 deposit
What are the main assets of the business?
Furniture and fittings
What is their overall condition?
Good working condition
Do any require repairing?
No at time of writing
Which assets are on lease/HP and with whom?
None
Are they presently insured?
Yes all insured
Strengths?
Experienced and skilled staff: Have a team of talented hair stylists, beauticians.
Prime location: Convenient and easily accessible location that attract more customers and increase foot traffic.
Quality products and services: Offering high-quality haircare, skincare, and beauty products helps build customer loyalty and satisfaction.
Strong brand reputation: Positive word-of-mouth, online reviews, and customer testimonials.
Diverse range of services: Providing a wide variety of services such as haircuts, styling, colouring, facials, massages, and manicures/pedicures in order to appeal to a broader customer base.
Weaknesses?
High overhead costs: Rent, utilities, staff wages, and inventory expenses can significantly impact profitability, especially during slow periods.
Limited scalability: Expansion opportunities may be constrained by factors such as space availability, staffing challenges, and financial resources.
Opportunities?
Expanding services: Introducing new services or packages such as bridal packages, spa treatments, or men's grooming services can attract new clientele and increase revenue.
Online presence: Leveraging social media platforms, the website, and online booking systems can enhance visibility, engage with customers, and streamline operations.
Threats?
Competition: Competing salons, spas, and beauty clinics in the area can pose a threat to market share and customer acquisition.
Economic downturns: Economic recessions or downturns can lead to reduced consumer spending on discretionary services like hair and beauty treatments.
What is the reason for the sale?
The shareholders wish to pursue different business opportunities
Why is this a good business?
Easy to manage with growth potential, high cash flow, best staff in the industry
