Quantcast

New Nail Salon

SalonGeek

Help Support SalonGeek:

Status
Not open for further replies.
N

nothingbutnails

Guest
Hi all.

I may have the opportunity to buy an existing nail and beauty business.

At the moment I am freelance and today went and had a look at this business.

It has 60/70 regular clients, is in a great High Street location, rent is really good, it has a brilliant reputation etc. I got copies of accounts, agents particulars today and was wondering what to do next.

I want to go in with my eyes open and wondered if it was best to stay as I am, or go for it.

Would be grateful for any replies, especially as to how much one should pay for an existing nail and beauty business.

Thanks.

NOTHING BUT NAILS
 

nat

Member
Joined
Feb 12, 2004
Messages
14
Reaction score
0
Location
Berkshire
Hi, I run my own business in Bourne End (not nails though...this is a new discovery for me!)

My advice would be to look carefully at the figures to start with and see how the business has been doing over the last couple of years. I'd look at the fixed overheads and find the break even point to see how sustainable the business is and what your minimum turnover is. Base this on the existing price list as you may want to stick to this for a while as you will be taking on existing customers.

Do you have an accountant? I'd want to discuss the accounts in detail with someone who really knows their stuff. If all looks good on that front it's worth considering. :)

Other stuff is common sense - you've already said it's in a good location and the rent is OK .... when is the next review? Is it likely to stay good? Is there anything that will limit the Clients you will attract? etc

Also look at the staff. The people make the business work so they are really important. Are therapists employed or self employed? If they are self employed how likely are they to stay and will they take their Client base with them?

I don't know whether the Beauty Industry is different, but usually if you buy a business you put a restriction on the existing management so that they have to continue working for x amount of time before you pay out the full amount. That's worth checking, but an accountant should be able to advise you / put you in touch with someone to value the business for you.

I think it sounds really exciting!! As long as the finance looks OK and you are comfortable with that I would say go for it! But look carefully and sensibly at that first. I hope this is of help. Good luck with it :)
 

ella

Well-Known Member
Joined
Aug 13, 2003
Messages
316
Reaction score
8
Location
Penryn, Cornwall
I think the advice posted so far is spot on. I would like to add:

Consider putting a clause in the contract that the vendor will not be allowed to work in the same business (I.e beauty) in a 10 mile radius for 5 years. (vary fiigures as you see fit).

This is not unusual in many trades when the customers would be loyal to the staff. Check with your solicitor for advice.

Will you actually make any more profit than you do now. I guess you will turnover more, but at the end of the day how much will you get to keep??

Why are they selling the business?
 

Little Angel

Well-Known Member
Premium Geek
Joined
Jul 28, 2003
Messages
3,197
Reaction score
136
Location
Lincolnshire, England
hiya

i agree with all the above, i would add not to rely on the existing clients as they are very fickle, so make sure you are just paying for the lease and any equiptment ect. See if you can negociate with the landlord to have your rent capped for a few years. Make sure you take into account all bills and have a detailed business plan.
Its very exciting and nerveracking but worth it.
 
Status
Not open for further replies.

Latest posts

Top