Upscale, Profitable, Established Hair Salon & Spa

Financial & Assets Details

About the Business

Business Description

Profitable, well-established salon and spa offering hair, nail, skin care services and more. This attractive business presents a new owner with a great location in a high traffic, thriving area of the Cedar Rapids metro area. Over the past three years, this business has consistently generated earnings for the owner in excess of industry averages and could provide a great opportunity for an owner-operator or investor. The business has a capable, experienced staff with an established, loyal client base to allow for continuity to the successful buyer and is not dependent on the seller. For stability and quality, licensed cosmetologists, esthetician and receptionist are employed by the business rather than just "independent contractors" or chair/booth renters. The business provides ongoing training to employees beyond the minimum continuing education required to maintain a license.

The facility enjoys great curb appeal and abundant parking outside. Inside, the high quality finishes are designed and built-out to appeal to high-end clientele.

This company has valuable systems, processes and vendor arrangements in place. The well-maintained furniture and equipment is configured for productivity and high quality client experience.

This business has achieved enviable ratings, reviews, testimonials, "likes" and "follows". Testimonials tout the professional, relaxed, cozy environment and outstanding service.

Growth & Expansion

This well-established business has a strong foundation with work-force and systems in place. The brand has a great reputation and clientele.

This unique enterprise offers abundant potential and could benefit from an enthusiastic, energized, new owner with a passion for customer-service management and has marketing and hiring and training skills.

The beauty salon industry has been strong with a positive outlook for continued increasing revenue. In 2015, the industry generated $56.2 billion in the United States, with hair care being the largest segment and skin care being the second largest segment. The hair care segment has consistently been characterized as a stable or recession-resistant.

Seller Financing

$116,100 down/$12,900 for 120 mos. @ 9.95%.

Market Competition:

This business has a great location and loyal customer base. While certainly others targeting the same clientele throughout the community, there are not direct competitors in the affluent neighborhood where the business is located. Opportunities stem from continuing to build on teh foundation established by focusing on niche relationships and service. Potential Growth Monthly lease and expenses have recently been reduced by almost 40% in the past few months and will allow for additional cash flow. This salon is on one of the highest traffic count streets in the Des Moines and Cedar Rapids area. This business has never marketed and is prime to explode with just a few good marketing ideas.

Location Details:

Being in business almost 20 years, the business relocated and expanded to a newly constructed in 2007.

There are six salon stations and three shampoo bowls. There is one room for nails with two pedicure chairs and one manicure table. Another room is a spa room to use for massage, waxing or skin care services.
The multi-tenant facility with curb appeal and sufficient parking is located in a thriving neighborhood development and is surrounded by other popular services businesses. The area is growing, expanding and affluent. Nearby, growth continues with significant development planned to begin as soon as 2019.

Average daily traffic count at the nearby intersection was about 10,000 in 2013 with 7600 on the primary access street and 10,500 on the adjacent access street in 2013. Both are main streets through the area with increased traffic since the counts were taken.

The attractive lease rate amounted to less than 7% of total sales in 2017. The landlord would entertain a 5-year lease with 5-year renewal options.
The 1276 square feet usable space is impressive and designed for productivity while appealing to upscale clientele.

Support & Training

Will train for 2 weeks @ $0 cost.
The business strives for excellence in salon services including haircutting, perming, styling, manicures, pedicures and esthetician services like facials, air brush and hand applied makeup, lash lifts and lash tinting while offering high-quality beauty products and wedding or special event packages. The facility also has capability for massage services. 2017 sources of revenue breakdown:

$262,015 Haircut and styling - includes hair coloring and other hair care services.
$42,533 Retail Sales
$13,864 Hair Removal-waxing-facials
$7,990 Nail services
$910 Makeup

A buyer is responsible for determining salon ownership license necessities. The seller expects a successor can hold or obtain an Iowa license or employ a license holder and not personally be licensed.

Reason for Selling:

After nearly twenty years of building a successful business, the seller desires a lifestyle change.