Buying an established salon

[koolkitty7]

Hi All,

There is a salon for sale in my local area which sounds appealing but would like your opinions.

It has 2 treatment rooms mani and ped stations sunbed, 15k of new fittings stock. 2 part time staff and one full time on rent a chair basis being paid 40%.

The salon lease is £9k per annum and the asking price is £20k. turnover is 50k.

Just wondered what your thoughts are!

 

[Elaine143a]

Sounds like an ok deal to me, but find out why the current owner is selling. Make sure they are not going to set up again locally, taking existing clientelle with them. Check what type of lease it is, how long running for etc. When was business set up. Can they prove their figures. How old sunbeds. What is the split between fixtures/fittings and goodwill (speak to accountant about that one as it makes a difference to you - can't remember which way round).

After all this (and no doubt lots of other things that other geeks will let you know), ask if you can spend time in the salon observing. You may want to be there for a few weeks, or just pop in unannounced to see what is going on, check bookings etc. Anyone selling a salon and asking a legitimate price should not be opposed to you doing this.

Good luck.