Summary
- Asking price:
-
$320,000
- Sales revenue:
- $880,000
- Net profit:
- $145,000
- Years established:
- 5
- Employees:
- 3 f/t and misc. p/t
Business description
This well established semi-absentee run Day Spa and Hair Salon offers its discerning clients a full suite of beauty care services including facials, waxing, microdermabrasion, massage, high-end hair care, as well as a top of the line retail product offering. While this turn-key operation is superbly run, it still offers prospective buyers a great deal of upside potential as the owner is semi-absentee, and not managing the business to its full potential.
Property information
- Real Estate:
- Lease
- Lease terms:
- 2,000 sq. ft. for $6,000/month incl. CAM
- Location:
- This 2,000 square foot facility comes with a lease that has two remaining five year options, and should be offered to qualified buyers at an unbeatable rate of approximately $6,000 per month including common area maintenance (CAM), with cost of living increases every 2 years. The sale will include over $170,000 in inventory and equipment, as well as the benefit of the Seller’s nearly $300,000 in facility improvements.
Other information
- Expansion potential:
- As the current owner is semi-absentee, new management will likely seek to work at the facility full-time as a service provider to maximize profitability, or at a minimum, as a receptionist to achieve the highest average ticket sale possible, while ensuring the salon provides each of its clients a superior customer service offering. New owners will seek to ensure that all hair stations are occupied, that market rate rents or commission splits are charged to technicians, and most importantly, that the overall operation is being aggressively marketed to existing clients and prospective new clients to continually increase the salon’s throughput. New management may also seek to explore adding entomology treatments and body wraps, and if the landlord permits it, high margin medical spa services such as injections or laser hair and vein removal.
- Competition / Market:
- Valencia has a number of top notch day spas, medical spas and hair salons, however, few (if any) competing salons will be able to boast the 12,000 person client base, the employee tenure, the ideal location, or the fantastic lease rate that this business offers. These unique attributes should continue to provide this salon and spa a sustainable competitive advantage for years to come.
- Support & training:
- 2 weeks at 20 hours per week
- Reasons for selling:
- Personal
- Trading hours:
- M 10-3; Tu-Th 8:30-8; Fr 8:30-5; Sa 8-5; Su by appt.
- Furniture / Fixtures value:
- $115,000
- Inventory / Stock value:
- $50,000