Highly Fashionable Brentwood Hair Salon For Sale

Business description

Business Details
The particular highlights of the business are:
- Ideally located concern offering excellent lifestyle.
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £175,000 with a net profit of £7,000 (see financial summary below).
- A business with great potential which has not been exploited because the current owner wishes to pursue a different career path.
- An easily run operation.
- Good loyal well trained staff.
- A good first time buyers business.
- There is a nail bar on the premises.

History
Phoenix Business Transfer Agents are delighted to place onto the market highly fashionable hair salon which has been established since 1987. The business has been in the hands of the current owner since 2008 and he now wishes to sell due to other career commitments.

Services
This very good business opportunity provides a high quality Ladies & Gents hairdressing service.

Staffing
The concern employs six staff. All are full time there are also two self employed operatives. The total wage bill is £80,000 pa. All staff would be willing to stay on after a sale.

Owners Role
The owner’s role is an all round stylist and hands on managerial role.

Marketing
The owner markets the business in various magazines including Essex Entrepreneur, Time Out and has a website.

Competition
As far as competition is concerned there are a number of salons nearby but this concern has the highest profile and is the closest to the mainline rail station.

Market
The client base consists of locals, commuters and has regular clientele that travel out of London due to the Salon’s excellent reputation.

Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Increase the opening hours to include Mondays.
• The basement could be rented for further beauty treatments and generate up to £8,400 pa additional revenue.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• With an enhanced website.

Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Property Details
The property is terraced and is part of a parade of shops and is approximately 1,750 sq ft which includes the ground floor salon and basement. The front is branded with an attractive glass front. The main customer service area is polished wood. It is very well presented and is very conveniently laid out.

To the rear is a store room. There is a toilet, staff facilities and a fully equipped kitchen.

External
To the rear there are two free car parking spaces.

Equipment with sale
All fixtures, fittings and equipment are included in the sale price and are valued at £50,000.

Financial Details
The present turnover is £178,162 per year with a gross profit of £89,000 and a net profit of £7,000. The wages are £80,000. The present value of the stock is £4,500.
The potential turnover of the business within the next 2 years is forecast to reach £250,000 given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
Please note Phoenix do not guarantee the accuracy of these figures which are in many cases estimated and are not verified. Please do not rely on the accuracy of these figures and seek professional help before making any offers. Phoenix will not be held liable for any inaccuracies in these figures or any other statements contained in relation to this business.

Property information

Property:

Leasehold

Lease terms:

The original length of the lease was 10 years with 3 years remaining. The rent is £23,000 pa inclusive of rates with a review in 2012. The lease may be renewable or negotiable for longer term if required.

Leasehold rent:

£23,000 pa per annum

Location:

- Situated in the Brentwood area of Essex.
- Prominent location on main arterial road.
- Part of a parade of shops.
- Excellent parking facilities nearby.
- Very close to a mainline rail station.
- Area earmarked for regeneration.
- Surrounded by a densely populated residential area with schools and other local amenities.
- Local population consists of 33.86% of people fall into Social Grade AB. The second highest proportion of 29.23% belongs to Grade C1, whilst 5.01% fall into Grade E, the least represented band.
- Area offers exceptional lifestyle.
- High levels of passing trade.
- Good volumes of traffic and pedestrian flow.
- Commercially thriving area.
- Well linked with A12, M25, A128 and A1023 with excellent railway links.

Premises details:

The property is terraced and is part of a parade of shops and is approximately 1,750 sq ft which includes the ground floor salon and basement. The front is branded with an attractive glass front. The main customer service area is polished wood. It is very well presented and is very conveniently laid out.

To the rear is a store room. There is a toilet, staff facilities and a fully equipped kitchen.

External
To the rear there are two free car parking spaces.

Size in square feet:

1,750 sq

Business Operation

Expansion potential:

The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Increase the opening hours to include Mondays.
• The basement could be rented for further beauty treatments and generate up to £8,400 pa additional revenue.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• With an enhanced website.

Competition / Market:

As far as competition is concerned there are a number of salons nearby but this concern has the highest profile and is the closest to the mainline rail station.

Reasons for selling:

Owner wishes to sell due to other career commitments.

Trading hours:

Tuesday: 9am to 5pm.
Wednesday: 9am to 7pm.
Thursday: 9am to 9pm.
Friday: 9am to 7pm.
Saturday: 9am to 5pm.
Sunday and Monday: Closed.

Employees:

The concern employs six staff. All are full time there are also two self employed operatives. The total wage bill is £80,000 pa. All staff would be willing to stay on after a sale.

Years established:

23 Years

Other information

Support & training:

The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Furniture / Fixtures value:

£50,000 (included in the asking price)

Inventory / Stock value:

£4,500