Beauty Salon - Skin Care For Sale

Business description

A beautifully presented and professionally operated beauty salon specialising in skin treatments represents a great opportunity to acquire a business with substantial goodwill, strategically located to take advantage of passing pedestrians at a competitive rental. The business exudes charm and efficiency and a new owner could walk in and be running a successful business totally seamlessly.

Although sales are listed as $300 000 for the financial year to 30th June 2007, this does not represent the true sales potential of the business as it is currently operating. During that year the owner was not fully engaged in running the business owing to her pregnancy and the birth of her child. The sales have exceeded $300 000 in prior years and are forecast to be $340 000 to $350 000 the financial year to 30th June 2008.

Operations:

The current operating hours are:

Monday 10.00 a.m. to 6.00 p.m.
Tuesday 10.00 a.m. to 9.00 p.m.
Wednesday 10.00 a.m. to 6.00 p.m.
Thursday 10.00 a.m. to 9.00 p.m.
Friday 10.00 a.m. to 6.00 p.m.
Saturday 9.30 a.m. to 6.00 p.m.

The business has up to date operational and training manuals and a sophisticated computer system providing data on all aspects of business and staff performance, as well as a CRM module for maintaining the data base for marketing purposes.

Market / Customer:

The clientele of the business caters for young girls from 15 years of age to 70 year old ladies, although the main target market is 25 – 40 year old women. In addition, a small number of men are regular clients. A significant proportion of the clientele are professional people, from a very wide geographic area. This is because many of the clients do not live in the area, but work nearby.

Between 70% and 80% of clients are regular customers, and the database has in excess of 4,300 names. An average of 30 new clients is taken on every month, with a re-booking rate of about 80% of these new customers, thus ensuring growth in the business and the database.

Current marketing efforts are:

• New client letters of welcome
• Birthday letters to existing clients
• Special promotional notifications through the database
• Two large print ads in Melbourne Weekly annually through the Centre marketing fund
• In-centre promotions funded by the centre


Products / Services:

The services provided are as follows:

• Facials
• IPL treatments
• Microdermabrasion
• Waxing
• Nails
• Tinting
• Body treatments
• Pedicures
• Manicures
• Eyelash perms

The business has been built on fostering good client relationships with high attention to detail and an exceptional level of service. The company enjoys a good reputation and has a stable staff. The business could be significantly increased by employing more staff.

Premises:

The premises consist of:

• Five treatment rooms
• Spacious reception area
• Laundry
• Bathroom/Toilet
• Lunch/Stock room
• Separate shower
• Two nail stations

Rental is currently $53,500 p.a. and outgoings are a further $3,000 p.a. and is leased until December 2011. The salon occupies 115 square metres.

Plant/Equipment / Fittings:

Furniture, fittings, equipment and machinery is valued at $140,000, with lease commitments of approximately $50,000

Management / Staff:

All staff are fully trained, advanced beauty therapists. There is one part time employee and two full time casual employees.

The vendor will be prepared to work at the salon after the sale to ensure the smooth transition of client relationships.

Further Information

To receive additional information on this business, please contact Steve Lentin:


Telephone (03) 9569 2883
Fax (03) 8677 0868
Mobile 0419 910 099
Email stevel@accordbrokers.com.au.


A comprehensive business report will be provided to all potential buyers covering topics such as:

o Business objectives
o SWOT analysis
o Competitive advantage
o Marketing plan
o Photograhs
o Growth strategies
o Management strategy
o Financial summary

Property information

Real Estate:

Lease

Lease terms:

Three Years Plus

Location:

Shopping Mall on one of Melbournes busiest shopping precints.

Other information

Expansion potential:

Employment of more staff will significantly increase revenue.

Support & training:

A generous hand over period will be granted and the vendor may be prepared to work on restricted hours.

Reasons for selling:

Family commitments

Trading hours:

Six day week

Furniture / Fixtures value:

$140,000 (included in the asking price)

Inventory / Stock value:

$10,000 (included in the asking price)