Family hair salon doing men?s, women?s and specializing in children?s haircutting. This business has been in this town for over 17 years. The Owner wants to retire but would work for the new Owner 2 days a week so the new Owner can get to know the customers and learn some of the tricks needed to do children's hair (especially the younger ones).
$39,000 + Inventory (+/- $5,000)
In the Greater Danbury CT area (Fairfield County)
There are 3 food establishments across the street: Sandy Hook Diner, Gino?s Pizza, and Cover Two Sports Caf‚. Next to the building is Suzuki Music School and Porko?s Karate Academy. Core Repo Graphics is on the LL of this building.
There is street parking in front of the business and a lot in the rear for +/- 22 spaces.
The front of the business is level with the road, the rear is on the 2nd floor. The work area, waiting areas, book & toys space for the kids, and the cutting stations are all open. The office/break room is off the working area. Two bathrooms are opposite the office.
The current term is over this year so a new lease will need to be negotiated with the landlord. The Landlord will want $2,100 a month which is +/- $10.96 psf. But you and the landlord will need to negotiate the amount between yourselves.
The owner is working with 1 part-time experienced cutter.
Note:This presents an opportunity for the new owner to do some advertising & promotion, hire 1 or 2 cutters (one of which should be experienced with women?s haircutting, coloring, etc.)
Furniture, Fixtures, & Equipment (FF&E):
included in the asking price. Upon receipt of your signed Confidentiality Agreement, I will send you a complete list of the equipment included in the sale.
There is limited competition in the area.
Growth & Expansion:
The comments above (Employees) discuss a few ideas. Others include opening more hours, selling products along with the haircutting, increasing staff to do women?s hair, coloring, etc. and doing more advertising & promotion.
Hours Of Operation:
Monday, Sunday & Thursday ? closed. Tuesday, Wednesday & Friday 12 ? 6. Saturday 9 ? 3. All visits are by appointment. Owner working 4 days/week ? all clients make appointments.
Note: Keep in mind the Owner wants to retire. You have a choice ? do the same or hire cutters and expand. Sales & Cash Flow info is for a 4-day work week.
Support & Training:
The current owner will remain for 2 - 4 weeks if requested by the buyer provided an agreed split is negotiated. Note: Seller would like to work for the new owner 1 or 2 days a week. This would be good for the Buyer as more customers will get to know her (Seller).
Sales & Cash Flows:
The following is for a 4-day work week. Adjusted sales in 2019 were: $129,783. The sales in 2020 & 2021 were pandemic years and are being ignored for this discussion. For purposes of valuation and subsequent pricing, 2019 financials will be used.
Cash Flows (Sellers Discretionary Earnings) for 2019 is +/- $65,083.
What you can do to expand this business:
Open more days and hours. Sell add-ons, chemicals, etc. Hire more cutters. Advertise & promote the business. Start a direct mail campaign and get involved with social media. E.G. every day post some sort of article etc. If prices and service remain good, can you expect to increase revenues and cash flows? Or?keep everything the same.
Recurring Revenue Streams?
Yes. Hair keeps on growing ? every so often it has to be cut!
Reason for Selling:
If qualified & with security, the Owner will consider financing with 50% down and the balance financed over 2-3 years at +/- 7% interest.
More notes for this property/business?
?Breakdown of percent to total sales and prices charged:
Men 30% $25
Women 5% $30 & up
Children 65% $25 & up (boys - $25, girls - $25 & up)
(The percent breakdown is approximate)
?Length of time in the area; and in the same location, helps when a new family moves in and is looking for a hair salon for the whole family. Been here for over 17 years (2004).
?Over 2,536 children age 14 and under within 3 miles of business, 5,767 within 5 miles, and 35,780 within 10 miles.
?Over 2,000 client cards with contact info ? ideal for mailing lists etc. (check these out yourself)
?You have a choice, hire cutters and expand or keep it as is and continue to work a 4 day work week and have clients make appointments.
PS I think you should expand - but then I don?t want to retire!
Interested buyers MUST sign our Confidentiality Agreement and fill out the Questionnaire before any additional information is provided or a meeting is scheduled to view the business, (attached) or the location disclosed. Detailed financial information showing the ability to purchase and proof of funds may be required before a meeting or conference call is scheduled.