How Do You Buy A Beauty Salon?
As disposable income has increased, more women – and men – are starting to view beauty treatments as an essential part of their lifestyle. This has led to the rise of the dedicated beauty salon, catering for everything from manicures and pedicures to complimentary therapies and tanning. • You can make money by fixing this! If you tailor your business to the needs of your market, then it is possible to run such a business almost anywhere. Location is less important – customer relationships are the key. • Beauty businesses are on the market for anything between £15,000 and £120,000 – sometimes even more. It is one thing having a business where you’re selling floor space with a couch. But some businesses can have thousands of pounds of equipment, for example, for laser treatment or tanning. If the business doesn’t have the latest sophisticated machinery, then your gut reaction might be to kit it out with the latest equipment – which could cost between £30,000 and £40,000. For most salons,
Purchasing an existing beauty salon is one way to save the start-up costs that accompany a new business venture. Not only do you purchase the existing client base, the business should already have cash flow. Once you have found the beauty salon you want to buy, you need to complete the sale. Step 1 Provide a letter of intent. This is a non-binding agreement that allows you to have access to confidential information such as the business financials. It should include the proposed purchase price, the terms of the sale and the initial items to be included in the sale. Be sure to add a disclaimer that either party may quit the sale at any time for any reason. Step 2 Sign a confidentiality agreement. This legally binding agreement guarantees that you will not disclose the details of the sale, the location or the name of the beauty salon until the purchase is complete. Step 3 Review financial statements. The financial statements should include three to five years of history. Make sure the fin
