As the buyer of a nail salon, you will need to ask yourself what kind of owner you want to be.
If you are skilled in the practice of nail art, you may consider running a small operation where you are responsible for much of the work. 65 percent of nail salons only have one or two technicians, one being the owner.
While nail salons can be profitable, small operations don't bring in enough money to have many technicians.
Before buying a nail salon, you need to consider where your business is going to be coming from; what percentage of business is coming from appointments versus walk-ins. Typically, 39 percent of business comes from regular appointments, 25 percent of business is from standing appointments, while walk-in appointments represent 25% of business.
Location is incredibly important because business relies on walk-in appointments, requiring a high volume of foot traffic on a regular basis.
When looking for your new location, long-term leases are important and lease is something to pay special attention to because a lot of leases don’t transfer to the buyer in this industry. It is the seller's job to ensure that there is a clause in the contract that allows for the transfer of the lease. Landlords play a tricky role in the buying/selling process of nail salons because few are willing to change names on the lease. If the transfer of lease is possible, knowing how to negotiate prices is a helpful way to ensure a profitable nail salon. When negotiating a lease, determining the economic rent is more important than considering market rent. Rather than determining what other similar spaces have been rented for and adding in factors such as location, condition, and terms, your rent should be determined by what you can realistically afford based on your projections of sales and profits.
The value of a nail salon is typically in the range of 25-35 percent of annual sales plus all inventory. The inventory that adds the most value to the business is the salon chairs with whirlpool bathtubs. Value in the nail salon industry is most commonly determined by good will, which focuses on the business’s intangible assets. Business relies on regular and returning customers, and having the same client on the schedule 1-4 times per month is part of the formula when determining the value of the business. The brand and logo associated with the salon is also important, as reputation and word of mouth advertising helps keep a steady client base.
For Serious Buyers And Sellers Of Nail Salons And Shops - Find The Best Info Below:
See All Nail Salons For Sale, Wanted To Buy In California Go To: California Nail Shops And Salons For Sale & Wanted To Buy
Find A Nail Salon Broker Or Agent Go To: All Nail Salon Brokers & Agents
To Sell A Nail Shop In California - Go To: Sell A California Nail Salon Online
Nail Spa Resources To Buy Or Sell A Nail Service - Go To: Nail Salon Advisors, Due Diligence, Financing, etc
Find Financing To Buy Nail Salon Services - Go To: SBA & Non SBA Loan Restaurant Financing For Buyers - Get Pre-Qualified
How To Buy & Sell Nail Spas - Go To: Buying, Selling Nail Stores - Strategies, Good Tips, etc. - Articles & Blogs
#photo#About The Author: Peter Siegel, MBA is the Founder And Director of BizBen.com (established over 20 years!) and is a Business Purchase Financing expert (SBA and Non-SBA financing). He consults daily with California business buyers, owner/sellers, business brokers, and agents regarding buying and selling California small businesses. Call him today regarding advice on finding, buying, selling, financing a business purchase/getting pre-qualified (ask about the BizBen ProBuy and ProSell Programs for business buyers and owner/sellers, and brokers). He'll also give you referrals to the best resources on buying and selling businesses, brokers, etc and a FREE copy of his eBooks "How To Find And Buy A California Business Successfully" or "Valuing And Selling A California Business Successfully" with any personal consulation/service. Peter Can be reached direct at 925-785-3118 (if you get voicemail please leave some good times to reach you and a detailed message - thanks).
Contributor:
I am the Founder Of BizBen.com. I consult daily with intermediaries, business buyers, owner/sellers & advisors daily about buying and selling California small to mid-sized businesses. Contact me today about joining & utilizing BizBen, consultations, & advisory services.
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