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High End Barber with Many Other Products and Services,Many Ways to Grow-Denver CO

ServiceFor Sale in Denver, CO

Financial & Assets Details

$503,000
$52,000
$20,000
$12,000
1600+/-

About the Business

Yes
2015
8
$2,160
Yes

Business Description

They have created a very unique, modern, popular, and repeatable business model. They have consistent long waits for all of their barber services and have added new barbers this year whom will continue to increase growth and profits. They are growing fast and have a concept with the ability to add successful locations anywhere. Based on their demand, they have decided to add more barber “chairs” and have also decided to convert to monthly booth rentals to increase profitability as of November 1, 2019. This is the same concept that has been very successful for salons like Sola Salons, etc. This business is set up to continue its growth in the current location and they believe that the buyer should consider a 2nd and 3rd location. They will sell 100% or stay and keep 20% to 30% to help and participate in the future growth though new locations for “proof of concept” and to sell their remaining ownership in 3 to 5 years. They believe this is a 1.5M valuation company if there are 3 locations and it could be a lot more than that if the expansion were to add more than 2 locations but they do not have the money to open any additional locations. The model is working and once they are done with the buildout out of their current location by early November, they believe it will be creating 800K in revenues and 150K to the bottom line over the next year. It is a very fun and very popular place with proprietary software and technology used to track and show customers when it is their turn, etc.

For family reasons, this is being offered for only 95,000 plus the current value of the inventory estimated to be around 12K.

The trailing 12 months from October 1 2018 to September 30 2019 had earnings of 52K from revenues of 503K. The sales price is less than 2 times the trailing 12 months earnings. The revenues and earnings are growing at 19% per year and over 100% a year in earnings with plenty of room to continue to grow. They would have put a lot more on the bottom line if they hadn’t been adding inventory and expensing it as they were buying the inventory along with the disruption of converting their location from half clothes and half barber to 100% barber which has proven much more profitable. The transition is now complete.

The owners are husband and wife with her working 30 hours a week at the business. Neither have ever cut hair or provided any of their other services. The shop is in a free standing space that is beautiful on both the inside and the outside. There is a lot of walking and vehicle traffic with plenty of parking. They take both reservations and walk ins. Walk ins typically need to make a reservation and come back the next day indicating the new owner both can and should add more booths, barbers, and other services.
This business was established in late 2015 and adds new recurring customers every month. They get a lot of positive reviews as proven by their 4.9 stars on Facebook and 4.7 stars with Google. Even if you are tentative, you need to see this shop. I believe this could be either Franchised or many locations opened by the owners.

Brief Overview and Deal Points:

Keep in mind that they moved into a better location January 1st of 2019 and instantly saw an increase in revenue and profit. Plus, their popularity/location has given them the ability to recently add 4 more barber stations which will be completed the first week of November for a total of 10. They currently have 7 full time barbers and one part time and will be adding more soon based on the completion of the additional stations/chairs.

They also have a free and custom computer tracking/reservation system that provides detailed customer history.

The store is 1,600 square feet and the gross lease rate is 2,160 per month, triple net. The lease is up January of 2024 with the current rent rate guaranteed for another 1 ½ years. Parking in front on the street and room for 3 in the back.

Marketing and Growth Potential: The retail side of their business has not been as profitable as the Barbershop side so their plan is to add 4 barbers to the new barber booths soon which will make a big difference. They have also created a successful line of men’s beard products that they wholesale to Whole Foods among others. They do not have the time to work on expanding this line although it is growing on its own. They have created an overall formula that works which means that a new owner can add locations as a great way to further grow the business. If the new owner gets to 3 locations, this will have proof of concept and therefore can find financing to expand this by franchising or otherwise nationwide or regionally. They have to sell for personal reasons that they will disclose after a non-disclosure agreement is signed but can still help part time.

Sincerely,

Jeff Chapman Eisnaugle
Business Broker Colorado, LLC
Direct: 303-905-7607
Office: 303-284-7025
Fax: 720-524-6482
jeff@businessbrokercolorado.com
www.businessbrokercolorado.com

This is prepared by Business Broker Colorado LLC with Company Broker Group LLC being the managing broker with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you have received this e-mail message in error, please reply to the sender and delete it from your computer.

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Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Growth & Expansion

The retail side of their business has not been as profitable as the Barbershop side so their plan is to add 4 barbers to the new barber booths soon which will make a big difference. They have also created a successful line of men’s beard products that they wholesale to Whole Foods among others. They do not have the time to work on expanding this line although it is growing on its own. They have created an overall formula that works which means that a new owner can add locations as a great way to further grow the business. If the new owner gets to 3 locations, this will have proof of concept and therefore can find financing to expand this by franchising or otherwise nationwide or regionally. They have to sell for personal reasons that they will disclose after a non-disclosure agreement is signed but can still help part time.

Seller Financing

10%

Market Competition:

The shop is in a free standing space that is beautiful on both the inside and the outside. There is a lot of walking and vehicle traffic with plenty of parking. They take both reservations and walk ins. Walk ins typically need to make a reservation and come back the next day indicating the new owner both can and should add more booths, barbers, and other services.

Location Details:

The store is 1,600 square feet and the gross lease rate is 2,160 per month, triple net. The lease is up January of 2024 with the current rent rate guaranteed for another 1 ½ years. Parking in front on the street and room for 3 in the back.

Support & Training

The owners will support as long as needed.

Reason for Selling:

Selling for personal reasons.

Listing ID: 17799

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