Salon 62

Salon 62 Business for Sale

Background Information

This business has been in existence since 1991. It operates as a Sole Proprietorship. The real estate, a commercial condominium, is owned by the owners of the business. The salon is housed in a 1118 square foot space, with 559 square feet finished above grade and the remaining 559 square feet below grade.

Salon 62 is currently supported by two hairdressers who rent stations from the owner. The owner has been unable to work. Both tenants have given notice and will be terminating their leases as of July 31, 2007. At that point, the owner will be taking over the business once again, maintaining the client base herself. The business is priced primarily based on the real estate and furniture, fixtures, and equipment, with only about 14% of the price allocated to goodwill.

Location

Salon 62 is located in the very visible Fox Block in downtown Plymouth. Its location on Main Street is within walking distance of Plymouth State College and the main business district of the vibrant town of Plymouth. The Fox Block is located at the corner of Route 3 and Highland Avenue, less than two miles from Exit 25 off of Interstate 93.

The Fox Block also includes a law office, dry cleaner, coin shop, hot dog restaurant, and other businesses. Banks, real estate offices, printing companies, restaurants, and other businesses in the immediate area generate a great deal of walking traffic from which the salon benefits.

Physical Condition

The salon is housed in a well managed commercial condominium building, which was built in 1939. The association is conservative and viable, and the exterior maintenance program is well focused. The interior of the unit is also well maintained, and all furniture, fixtures, and equipment are in good to excellent condition.

Reason for Selling & Other Facts

The owner has been unable to work. She has had tenants who have been working the stations in the past to support the operation, but they will be leaving the end of July. She will continue to operate the business on her own, but she feels that the time has come to move on in case she becomes disabled once again.

Inventory of Furniture, Fixtures & Equipment

  • 4 Glass Top Stations
  • 4 Hydraulic Chairs
  • 2 Shampoo Sinks
  • 2 Shampoo Chairs
  • 1 Manicure Table
  • 2 Chairs
  • 1 Pedicure Station
  • 1 Pedicure Cart
  • 1 Foot Bath
  • 1 Perm Cart
  • Complete Set of Perm Rollers
  • 3 Barbacide Jars
  • 1 Six Foot Display Counter
  • Glass Display Shelves, 25-30 glass cubes
  • 2 Metal Display Racks
  • 1 Black Shelf
  • 4 Cabinets
  • 1 Reception Bench
  • 2 Reception Chairs
  • 1 Portable Overhead Hair Dryer
  • 1 Hair Dryer Chair and Dryer Combo
  • 4 Station Mirrors
  • 1 Clock
  • 2 OPEN signs
  • 3 Plants
  • 1 Large Storage Cabinet
  • 1 Cash Register
  • Assorted Color Bowls
  • Assorted Color Brushes
  • Assorted Highlighting Needles
  • Color Chart and Books
  • Colorton Color Tubes and Developer, 60+ assortment
  • 4 Cans Powdered Lightener
  • Assorted Highlighting Caps
  • Assorted Process Caps
  • 1 Air Conditioner
  • 1 Bathroom Rack
  • Christmas Decorations
  • Halloween Decorations
  • Valentine's Day Decorations
  • 1 Glass Cabinet Front
  • 1 Wheeled Laundry Hamper
  • 1 Wheeled Storage Bin
  • 1 Magazine Rack
  • 7 Lighting Fixtures
  • 1 Water Cooler with Fridge
  • 1 Microwave
  • 1 Telephone and Answer Machine Combo
  • 2 Trash Cans and Liners

The approximate total fair market value of the Furniture, Fixtures and Equipment is $9,555.

Inventory

There is currently no saleable inventory included as part of the sale.

Hours of Operation/Employees

The salon is open from 8:00am to 6:00pm every day but Sunday. There are four full stations available, but on average there have been two of them occupied at any one time.

Size of Facility

The entire condo unit is plus or minus 1118 square feet, with 559 square feet finished on the main level and the other 559 square feet below grade as an unfinished basement. Condo fees are $88 per month. There is owner parking available for one car behind the building and metered parking is available on the street in front of the salon and within walking distance all around the Plymouth Main Street area.

Annual Sales Volume

Available upon completing a Confidentiality Agreement.

Gross Profit Margin

Available upon completing a Confidentiality Agreement.

Expenses

Available upon completing a Confidentiality Agreement.

2005-2006 Profit and Loss Statements

Available upon completing a Confidentiality Agreement.

Ways to Improve the Business

This business could be very lucrative if a new buyer takes over one of the four stations and leases out the other three. The going rate for a hairdressing station is $300 per month. This business could potentially bring in $900 per month in leased space and has shown to bring in $2000 per month for the owner, working on a part-time basis. On a full-time basis, this number could be substantially higher for a new owner.

Increased marketing would also positively impact revenues as the owner has not concentrated on marketing to the degree that she feels is necessary to maximize income.

Recommended Listing Price (RLP)

The RLP justification for this business is as follows:

The business is valued at (including Good Will and existing Customer Base): $15,350
Salable Inventory at Cost: $0
Furniture, Fixtures and Equipment: $9,550
Real Estate: $85,000
TOTAL RLP: $109,900

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