TanDenver

Im a business owner in the Denver area and own multiple businesses. I cant run my salon anymore. It profits around 30k per year and has minimum of 40k equipment/asset value. It's growing and has been around for over 20 yrs.

if you want to own/run your own salon but cant come up with a huge cash payment shoot me a proposal. I might owner finance the right person with down payment, trades and/or combination for the right person.

This is a real once in a lifetime deal.

Send me your proposal.

Steve Underhill

The salon has been open 20 years and is growing and has $30K net profit? This is not a growing salon, this is a failing salon.

Also remember that if you are counting money paid to you for working the store, that is not profit, that is operating expense and is not backed out.

this is a mistake I see sellers make.

Is the equipment 20 years old?

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Stephen Underhill
Consultant
steve@smuconsulting.com

TanDenver

Hi Stephen

Thx for the critique. I don't work the business personally just don't move time to manage. It is growing as no advertising was done for years. Now that Advertising is kicking in its gaining bigger market share and more clients. Also competition has decreased since the recession.

Wow thx for jumping to conclusions and saying my salon is failing. Lol

TanDenver

FYI. Also added new equipment, furniture, remodeled, lowered coperating and lease costs, employee costs, rebranded, etc which is paying off.


So no it's not a failing business. Businesses can be open for one year and make tons of money or be a mature business and bring in steady cash flow then grow market share with new ideas and management. I Guess... what do I know about making money.

Black Sun

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Don't be so defensive. When I first read your post, my conclusion was in total agreement with Steve...'can not be growing if it profits 30K'..after 20 yrs in business...

And you think this is growing?? How many other businesses do you own, and are they growing too at this rate?

A salon in business for 20 years, with or without marketing, should be making more than 30K...but if that is honestly how much you made out of it after 2 decades, the value of the salon should sell for the 20's range, to answer your question.

PS/ if you are listing this for sale, it needs to be posted in the 'for sale' thread...not here

House of Tan

He mentioned that it is growing now that he has renewed his effort in advertising. It probably is not grossing the numbers it would have been if he had not been distracted by other businesses.

The question is; why are you two being so rude? Bad Day?

@Tandenver, don’t mind the Poo Poo heads on here.

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Startbucks

TanDenver

Thx for that spark of reasonableness House of tan. Just kinda shocked. I didn't even give out that much info because I want someone to talk with me about this personally. Next thing you know everyone's an expert without even hearing any facts. I was going to feel out the crowd on here to see if someone was interested in an owner carry situation for a price way less than net cash flow. That's net not gross. You don't even have to work it.

Is there a formula of years to net cash flow that determines the growth of a company? What if a neighborhood grows? A Walmart goes up 20years later? Denver's population at some times increases 1000 people per week. 20 years ago it might have been declining. I do t even know or care because I didn't own it then. All I know is that it's growing now because of improvements and clientele growth and marketing.

I'm new to this forum. Didn't know every one was so angry. This is the weirdest conversation I've had with random people about something that they know so little about. Lol. I'm too busy to keep this going. Just pm me of you want to chat.

TanDenver

If you don't care to hear specifics that's cool to. Then don't contact me. This may not interest the titans of the industry who are making millions per year selling tans.But if you are interested in starting a new one from scratch this may be your thing. I may save you tens or hundreds of thousands.

If you want info just ask me. you won't find something like this for these terms.

Thx.

Steve Underhill

Sorry if I devalued your business. Based on your initial post it was a logical conclusion.

You may want to list gross sales as a starting point. Also more information that would offset this being a 20 year old business.

Have you always owned it or did you make these up grades after you purchased it?

People are always willing to take a look on this forum. Just know questions will be asked and the facts and verifiable information will establish the value. Certainly not something I say. I can tell you that I can evaluate the worth of your business with the proper information. That is a service that my company provides when assisting someone that is interested in purchasing a salon.

Sellers almost always believe their business is worth more than it is. An overpriced business will not “get looks” and then creates angst in the negotiation process. Incorrect pricing is the #1 reason a business stays on the market too long. Getting an objective business valuation is an absolute must to determine a sale or purchase price.

If a business is for sale because the owner has lost interest, typically the business will suffer. The business will no longer be properly maintained and marketed. This will result in a steady decline in business as well as the business becoming rundown. When this happens unfortunately the business will also steadily devalue.

Good luck with the sale, it is smart to try and sell it yourself instead of using a broker to start. Brokers will more often than not make it more difficult to sell. Sometimes they will keep a qualified buyer away from you. I just negotiated the purchase of a salon. The buyer was looking at two different salons. We made an offer on both salons, one was listed with a broker the other was not. The broker advised the seller to wait and he would get the seller more money. my client purchased the other salon that was not listed with the broker. Three weeks later the owner of the salon listed with the broker reached out to me and said he would except the offer. Too late we already purchased the other salon. Another deal killed by a broker.

Brokers also try and make salons sound like great opportunities and disclaim any information they provide. A buyer should never work with a listing broker without their own representation.

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Stephen Underhill
Consultant
steve@smuconsulting.com