Recently Refurbished Hairdresser In Melbourne For Sale

Business description

Investment Overview

Location: Melbourne Eastern Suburb
Date Established: 1997
Date Current Owner: 1997
Asking Price: $ 99, 000 + SAV
Annual Turnover: $ 200,000
Net Earnings: $76,000
Staff: 1 FT, 3 PT, Owner PT, 1 Casual
Premises: Lease
Lease Term: September 2014
Current Lease: $6, 745 per month plus outgoings and promotion.


Business Description Summary:

This sophisticated hair & beauty salon prides itself on quality hair designs and outstanding customer service. Set in a contemporary, architecturally designed fitout, this salon has built up a sizeable client base of loyal customers. A $200, 000 REFURBISHMENT HAS JUST BEEN COMPLETED.

Services offered include:

• Scalp massage
• Hair cuts and trimming (men, women, children & students)
• Blowaves
• Blowaves and set
• Perms
• Straightening
• Foils
• Permanent Tinting
• Nail treatments
• Hair removal
• Treatments for men

The salon rents out a beauty room where the tenant provides the following services with equipment provided by the tenant:

• Nail services
• Body treatments (massage)
• Body waxing (hair removal)
• Facials
• Spray tan
• Eye lash extensions

In addition, a station is rented out for the provision of threading.

This up-market, contemporary hair salon has built up a solid reputation, by word of mouth alone, for quality hair designs and extraordinary customer service.

Strategically located in a top location in a major Shopping Centre, the salon enjoys excellent exposure to a high volume of passing pedestrian traffic.

Included in the sale are:

• All existing Plant & Equipment
• All Fittings & Fixtures
• An excellent lease on easily accessible premises
• Well trained staff
• An extensive client database
• Any required training
• The goodwill of the business, built up over 12 years


Growth opportunities for this salon are excellent as no marketing has ever been carried out.

All the hard work has been done, including centre design, top-shelf fitout, equipment selection and staff recruitment. A very realistic asking price has been set, reflecting the cost of setup incorporating the latest $200, 000 refurbishment. No additional money needs to be spent.

This is a rare and exciting opportunity – the doorway is now open for a new, energetic owner to take over this successful business and continue its growth and profit surge to the next level.

Operations

Current hours of operation are:

9am – 5:30pm Monday - Wednesday
9am – 9pm Thursday & Friday
9am – 5pm Saturday

The salon recently discontinued Sunday trading but is entitled to trade on Sundays from 10 a.m. to 5 p.m.

The management software used by the salon is Hairware.

Market / Customer

Over the last 14 years the business has provided hair & beauty services to a vast number of residents living in its catchment areas. They also have a good number of loyal clients who have moved away from the area but still return to the salon for their hair care needs.
Although the salon provides its services to both males and females, the vast majority of its current customers (70-80%) are females in the 20-50 year old age group. They also provide hair care for children and some older clientele.


Premises:

Strategically located in a high traffic area of a major Shopping Centre in the eastern suburbs of Melbourne, this spacious and contemporary salon enjoys excellent exposure to passing shoppers. It is also located in close proximity to extensive parking facilities, so access is very convenient.

This modern salon has been designed to reflect a contemporary look, with brightly tiled floors, diffused lighting and minimalism in its decor. The salon was recently refurbished and upgraded at a cost of $200, 000.

In addition to the seven cutting stations, there are three wash basins (two with electric massage chairs that recline and heat). There is a fully equipped beauty room in the rear.

The current term of the lease is until September 2014.

The annual rent is $80, 928 plus outgoings and promotions.


Plant & Equipment:

Current Replacement Value is approximately $15,000 and all existing Plant & Equipment is included in the asking price.

Management / Staff:

The current owner, who works part time in the salon, has now decided to sell the business for personal reasons.

Existing staff include:

• 1 FT Qualified Hairdresser (Manager)
• 4 PT Qualified Hairdresser (including owner)
• 1 Casual assistant (Saturday)

The staff are well trained and it is anticipated that they would choose to remain with the business following its sale, subject to satisfactory conditions.

The Vendors will provide any required training and assistance during a suitable transition period.

Property information

Real Estate:

Lease

Lease terms:

5 Year lease with 3 years left to run.

Leasehold rent:

$63,564 per annum

Location:

Busy Shopping Centre

Premises details:

See Report

Business Operation

Expansion potential:

See Report

Competition / Market:

See Report

Trading hours:

9am – 5:30pm Monday - Wednesday
9am – 9pm Thursday & Friday
9am – 5pm Saturday
10am – 4pm Sunday

Employees:

3 Full Time, 1 Part Time and 1 Casual

Years established:

14

Other information

Support & training:

As Required

Furniture / Fixtures value:

$15,000 (included in the asking price)