MrsHBeauty
Well-Known Member
A while back I went to see a hair and beauty for salon.
Asking price of £50k last 5 years turnover is £100k + it's been pretty consistent and expects this year to be in line with that.
I thought the staff costs would be too high, and almost leaving no profit but it isn't. The salon owner currently earns a good chunk.
I decided not to peruse it anymore as I didn't want to borrow £50k and I'm sure she wouldn't accept an offer of £25k. I let the estate agents know. 4 weeks have passed and the estate agent has been in contact and wondered if I might be interested in a lump sum and then regular payment to be arranged and drawn up into the contracts.
Now first off I think hmmm she seems keen to sell. But I do know her private situation. She is living apart from her husband and kids as they have had to re-locate due to her husbands work. And now she says she has sold her house so needs to sell the bussiness.
The bussiness has lots to offer 6 hair dressing stations, 2 beauty room, a sun bed room and nail desk. It currently does very little beauty (my area) so that can be built on although I know how tough this is to increase, but I have done it in my own salon.
I would keep my current salon open and look at making a member of staff manager of it, with a pay rise and some extra hours. And I would concentrate on the new salon.
The main hairdresser is the salon owner. Now she says her clients will easily move to one of the other hairdressers there but there is no guarentee of this. Although the town where the salon is is a very nice tow, quite affluence and her clients are mainly ladies with grown up children who have a bit of money to spend.
The landlord is willing to make a new lease with a couple of get out clauses at 2 and 5 years, he is an older gentleman and has never put the rent up and says he won't.
My question is. Do you think a staged payment could work? Is it risky?
I know I have to consider the staff as they are covered by TUPE regulations.
Is there any other main things I need to consider? There I more things I have considered from a personal view but I am talking bussiness decisions now.
My dad is the key to this happening as he would have to guarantor any borrowing as I have a bad credit rating. I want to make sure I have thought of everything possible for when I talk to him about it so I can have answers for every question!
He is a terribly pessimistic ma, where as I feel I am optimistic, and an opportunist - but this can also cloud my judgement. BT I have thought long and hard about it over the last few months I haven't jumped straight in.
I feel sick with excitement and nerves even writing that down!
Asking price of £50k last 5 years turnover is £100k + it's been pretty consistent and expects this year to be in line with that.
I thought the staff costs would be too high, and almost leaving no profit but it isn't. The salon owner currently earns a good chunk.
I decided not to peruse it anymore as I didn't want to borrow £50k and I'm sure she wouldn't accept an offer of £25k. I let the estate agents know. 4 weeks have passed and the estate agent has been in contact and wondered if I might be interested in a lump sum and then regular payment to be arranged and drawn up into the contracts.
Now first off I think hmmm she seems keen to sell. But I do know her private situation. She is living apart from her husband and kids as they have had to re-locate due to her husbands work. And now she says she has sold her house so needs to sell the bussiness.
The bussiness has lots to offer 6 hair dressing stations, 2 beauty room, a sun bed room and nail desk. It currently does very little beauty (my area) so that can be built on although I know how tough this is to increase, but I have done it in my own salon.
I would keep my current salon open and look at making a member of staff manager of it, with a pay rise and some extra hours. And I would concentrate on the new salon.
The main hairdresser is the salon owner. Now she says her clients will easily move to one of the other hairdressers there but there is no guarentee of this. Although the town where the salon is is a very nice tow, quite affluence and her clients are mainly ladies with grown up children who have a bit of money to spend.
The landlord is willing to make a new lease with a couple of get out clauses at 2 and 5 years, he is an older gentleman and has never put the rent up and says he won't.
My question is. Do you think a staged payment could work? Is it risky?
I know I have to consider the staff as they are covered by TUPE regulations.
Is there any other main things I need to consider? There I more things I have considered from a personal view but I am talking bussiness decisions now.
My dad is the key to this happening as he would have to guarantor any borrowing as I have a bad credit rating. I want to make sure I have thought of everything possible for when I talk to him about it so I can have answers for every question!
He is a terribly pessimistic ma, where as I feel I am optimistic, and an opportunist - but this can also cloud my judgement. BT I have thought long and hard about it over the last few months I haven't jumped straight in.
I feel sick with excitement and nerves even writing that down!
