Services - Beauty & Barber Shops | Services - Other Personal Services

Asking Price	$55,000	Inventory	$400**
Gross Income	$81,284	Real Estate
Cash Flow	$51,695	Year Established	1988
FF&E	$10,000*	Employees	5 ft, 3 pt

* included in the asking price

** not included in the asking price

This is a well established, profitable salon that has been in business for over 20 years. It provides hair and wax services in an easy-access location, and customers enjoy the friendly and relaxed atmosphere and purchase high-end hair products at the salon. There is room for 8 stations, but only 7 stations are running currently. If the buyer is a hair stylist, he or she would be able to occupy the 8th station. Of the 7 currently operating stations, the seller occupies one of them. He wishes to stay on after the sale as a hair stylist and continue to pay the new owner rent for the station. There are 5 full-time stylists including the seller, 3 part-time stylists, and a receptionist. The full-time stylists pay $550 per month for the station, and work 5-6 days per week. The part-time stylists pay $32 per day. Of the 3 part-time stylists, two of them work 2 days per week and one works 1 day per week. No commission is paid from the stylists to the owner. While each stylist has his or her own clients and pricing, hair cuts range from $30 to $45, color treatments range from $35 to $50, and foils range from $65 to $80. The 2008 revenues include rents collected from the hair stylists, and the owner's revenues of $45,000 from the work he personally performs. The gross income and cash flow numbers assume the buyer will work in the 8th station, make $45,000 / year from his or her own clients, and collect rents from the other 7 stations. This is a perfect opportunity to own your own salon and take it to the next level!

Facilities: The location is easily accessible in Federal Way, and the inside is well maintained. The premise is approximately 1,100 square feet, and the rent is $1,535 per month. Every stylist has his or her own schedule, but the business is generally open from 9-9 seven days a week. There are 8 designated parking spots and a total of 40 shared parking spots in the complex. The condition of the building is good.

Competition: Given the asking price, this business has a very strong cash flow and a return on investment of over 93%. Having been established for over 20 years, this salon has an excellent reputation and a steady flow of clients.

Growth/Expansion: With room for 8 stations but only 7 stations currently operating, the extra station is perfect for the new owner to work and generate additional income. Since the part-time stylists are only working 1-2 days per week, there is enough room to add another 1-2 part-time stylists. The business does not do nails so more services could be offered. With additional marketing efforts, the buyer can either get more clients to come, get the existing clients to spend more on each visit, get clients to come more frequently, or a combination of the above.

Financing: Broker can assist the buyer in obtaining financing.

Support/Training: Negotiable.

Reason Selling: Seller is tired of business management and heading towards retirement age.