Fast Growing Online Haircare Retail Business And Prime Location Salon 001159
30+ year established prime-location full-service salon and online haircare retail business is available for acquisition. The current owner acquired the established salon in 2010 and streamlined and improved the overall operation and with the gained experience and knowledge, established, now a successful online retail business in 2016. While the salon caters to the established local clientele providing a wide range of professional haircare and nail services, the online business is targeted towards nationwide clientele selling high-quality and professional hair care products on major retail websites. This establishment operates in a 4,000+ SF retail strip center anchored by a national supermarket chain surrounded by affluent residential neighborhoods. The interior is furnished with modern decorations and features an open floor plan embracing large open spaces with each section designated for hair and nail care and private rooms for waxing. The majority of the customers are upper-income individuals of all ages from the heavily populated residential neighborhood. The salon provides a wide range of services from hair coloring and treatment, haircuts, waxing, and nail services and the online business consists of multiple major listings sites, including Amazon, Walmart, and eBay, selling high-quality major brand name hair care products at a competitive price point as well as products the owner developed for special hair care through many trials and errors, which are deemed to be better quality at much inexpensive price. The pandemic was a major setback for the salon and is slowly but surely recovering. Meanwhile, the online business has been growing every year since its establishment and flourished in the last few years, growing from $1.23 million to $1.53 million from 2019 to 2020 and to $2.21 million in 2021.
This business enjoys multiple sources of income from chair rental income, a commission from the stylists, retail sales from the salon, and online. The nationwide operation online business generates 80% of total sales while the local operation salon generated the remaining 20%. It is evident that the consumers have shifted their shopping habits due to the pandemic and the owner has taken a proactive approach by creating a proprietary software to streamline ordering and efficiency and secured a strong relationship with the manufacturers and distributors, which enabled them to offer products at a very competitive price. The competition is expected but limited in both businesses and a few of the biggest advantages this business possesses are that most of the inventory is stored onsite at one of the larger salons in North Dallas and unnecessary storage expenses are eliminated due to established relationships with the manufacturers and distributors, they can offer competitive prices and even below the MSRP.
The current owners have established all the legwork and successfully built a truly profitable business up to this point but have no further desire to grow and are seeking other opportunities. Despite the success, there is still room for growth for an enthusiastic buyer to take it to the next level by adding more brands and more products online, proactively marketing the salon on social media platforms, and actively promoting the salon’s online store. The sale includes all the assets including fixed assets and intellectual property including the listing sites, proprietary software, trademarks, and operational trade secrets. The potential to exponentially grow the business is truly limitless if the new buyer would follow the footsteps of the current owners' operation and know-how. This is a unique opportunity to acquire an established and highly profitable business that will be cash flowing from the first day of new ownership.
One of the owners is retiring and the other is seeking other opportunities.
The owner of the business will provide the necessary training needed to smoothly transition into the business operation.
This business is located in one of the more affluent neighborhoods in North Dallas suburbs anchored by a national supermarket chain. The busy intersection and the surrounding businesses provide constant foot traffic. All fixtures and equipment are maintained regularly and in great condition.
The online business and beauty salon industry is known for its competitive nature, the synergy created from both businesses together mitigates competition. The online business has an infinite customer base, while the 30+ year established has an established and loyal customer base that returns to the stylists that have been with the business before the current owners acquired the business. The online business sells well-known professional salon-grade products and enjoys high customer satisfaction and reviews. The salon is one of the bigger salons in North Dallas and provides various types of services while exercising safety social distancing.
The potential growth for online business is truly limitless. The current owners simply do not have enough time, aspiration, or energy to expand and add additional products on the listing sites. Currently, the business approximately has 2,000 items listed online and one sure way to immediately increase the sales is by listing more products, brands, and expanding the inventory. The new owners may also acquire another existing salon to expand the room to store more products. With the expansion, the new owner will have more buying power, resulting in more discounts from the suppliers and a better profit margin.
The salon could benefit from employing more stylists and/or station leasers, which will generate immediate additional income. Also, because the owners are occupied with the online business, little to no effort is being made on marketing and promoting the salon. More online presence with the help of SEO and social media presence is crucial to generate more foot traffic.
100% down at the time of closing or 25% Cash Down with SBA Financing for Qualified Buyers with Industry Experience.