Find information on how to sell your salon, in this blog post! Grab your accountant, sit back and let’s dive into an article on selling salon businesses!
Here are the steps you will take to sell your beauty salon:
Get your beauty salon business ready. Find out what you need to do to prepare to sell your salon, here.
Assess what it is you have to sell. Is this an asset sale or do you have a viable business to pass on?
Set a time frame. Allow a minimum of 6 months to sell a salon.
Consult with your accountant and salon selling experts.
Get a valuation, decide on price.
Choose a platform to sell a salon.
List your business for sale and exit salon ownership!
Salon owners work to grow their own business, manage staff and worry about client retention. Selling your business tends to come with life changes, sometimes before we’ve developed a solid exit strategy.
If you do have an exit strategy in place, you are one step ahead! Understanding who your potential buyer may be is a great start to a salon exit.
Do you see the salon going to a staff member? What about another owner taking over your space for an additional location?
Hairstylists and beauty professionals are looking to become owners, every day. Connecting with the right person is they key to successful salon sales.
Salon buyers come in all shapes and sizes. Think about what are the most appealing aspects of your business and what a buyer is looking for in a salon purchase. Envisioning the exit is half of the process for owners!
A salon exit strategy is the preparation and plan execution that takes place before the business goes up for sale. Exiting salon ownership means selling the business to a prospective buyer.
Having an exit strategy is not all that common in the hair salon industry. Potential buyers want to see profits if you are selling the “business”, not just an asset sale.
A well developed exit strategy means the salon makes profits that are are near or above a 10% margin. Owners should begin by making the business not solely dependent upon you. When staff is at low risk of leaving with the sale of your salon, this is the most ideal position to be in, as an owner.
Look, we don’t all arrive in this sweet space of selling, and that’s ok! You still probably have a valuable sale in your future.
When you’re done with being a beauty salon owner, you’re done. It’s hard to turn the corner after you have envisioned your future as a former owner. Whether you have your exit strategy mapped out or not, you can sell your beauty salon business! You just need the guidance and exposure to the market of potential buyers.
This is the big question! While there is a long list of market variables that contribute to a fair sales price, there are a few guaranteed assets you can include.
Guaranteed value in an asking price are: Buildout, physical assets, online assets, reputation and new client acquisition. To determine the value in these attributes, you will need a business valuation.
Small business valuation differs from a salon valuation. Taking into account the aforementioned example of a true asset, the beauty biz is a different market.
Working with a insider who has an investment in the beauty industry, is the best advice when thinking about how to sell your beauty salon. Understand what a hair stylist, buyer or investor deems valuable- contact us today for a free consultation!
Someone once told me a business broker is a glorified real estate agent! In my experience, this is true. Selling beauty industry businesses involves marketing. Brokers only work within the confines of their platforms.
We have the clientele! Our typical buyer is a stylist, current owners looking to expand, people who love the beauty services industry & want to get involved and investors seeking their next business venture.
Marketing! Our buyers come through our robust digital marketing efforts. We have the reach, and the audience to suit any owner’s exit strategy.
Innate understanding of the industry. Stylists and people interested in buying salons, spas and barbershops hang out in “our own” spaces. Brokers do not reach the buyers that Salonspa Connection produces, it’s that simple!
Your hair salon business is worth what someone is willing to pay for it. We like to think of selling as: create and craft the benefits of the future opportunity- now find the clients with money, who see the value of your hard work.
If you maintain the interior of your business, sell retail products, provide services to regular clients, have a reasonable lease agreement & landlord, have a digital presence and can demonstrate potential profit for a buyer, your brand is valuable.
If your salon is empty, you still may be able to sell it. You may want to sell the furniture, equipment, buildout, brand, remainder of your lease and online presence.
Selling price is the biggest factor to decide upon. Emotional pricing, or overvaluing businesses is common. Undervaluing salons, spas or barber shops also happens with sellers who are uneducated on the value to potential buyers, or are not confident in their business.
Selling a beauty salon is not like recruiting or selling a house! The process actually combines the principals of both, the key is using the right platform to sell.
We first learn about your business, conduct a valuation and determine a fair sale price. Now it’s time for marketing! The hair community lives in certain places online- gaining access to the right buyers in these spaces produces a successful sale.
Our selling service works the same for spas, barbershops and schools! Contact us today to see how we can make your hard work and assets into a sale.
This is important, value-adding stuff for Owners
The more assets you have, the more money you will get from the sale of your business. Every little perk for a new owner counts!
If your location is full of potential customers, this adds up to profits! Contact us today for a free consultation on the sale of your business.
Marketing efforts for new customer acquisition can be a bit confusing for newer owners. Location has A LOT to do with getting more business.
Google supports small business and makes it easy for clients to find you, based on location. Ensure your Google My Business is properly set up and add services and photos to your profile.
Happy customers like to give referrals! Incentivize customers with free shampoo or hair products to gain more attention. Social media is also a wonderful tool. Ensure your website is working to funnel new customers to your appointment booking software.
A popular hair salon is a wonderful thing to have! Offering niche services or catering to a specific clientele can help you gain popularity, quickly!
This depends on the model of your salon. Learn the differences between commission, hybrid and booth rental salons in our blog.