How We Sold a Salon Coach’s Beauty Business in 3 Months
Selling a salon business can be a daunting and stressful task. Find out how we sold a salon coach’s beauty business in 3 months to learn more about how to achieve a successful business sale.
When approached with the right mindset, the right preparations are made and you are listed by an expert salon business broker, it can turn into a smooth and rewarding experience.
A recent example that stood out to us is the sale of the well respected salon business coach, Kate Zarvis. We wanted to highlight what made her sale successful so you know a bit more when it comes time to sell your beauty business.
Although there’s never a perfect sale, Kate’s journey offers valuable lessons for salon and spa owners who are thinking about selling their businesses.
Sold by: Susan Wos
Location: Pittsburgh, PA
Prepared to Sell Her Beauty Business- Not Desperate
Kate had reached a point in her career where she was ready to exit, but she wasn’t desperate. Her coaching business was exploding, she was pregnant with her first child and the salon was at capacity- they had no more room for employees or new client acquisition.
Kate needed to open a bigger salon location to continue the trajectory of growth- something she felt she didn’t have the time or energy for. She had thought through her decision carefully, and her emotional detachment during negotiations with buyers made all the difference.
Kate worked ON her business, NOT in her business making it an attractive option for buyers…
By her readiness to sell and by keeping her emotions in check, Kate could clearly assess offers and negotiate from a place of strength, not urgency. This allowed her to remain flexible, reasonable and professional throughout the process, ensuring a smoother transaction.
Responsiveness and Efficiency
Time is of the essence when it comes to the sale of a business. Kate was incredibly responsive to both Susan and her best buyers, making it easier to keep interest & momentum with buyers.
She didn’t delay on showings, providing documents or answering questions from qualified potential buyers, which meant there were fewer delays and more confidence from everyone involved. Her quick responses helped push the sale forward at an impressive speed.
Realistic Expectations in Selling a Business
Kate went into the process with a clear understanding that selling a business isn’t without its challenges and a quick sale is not the norm. Kate accepted the pricing strategy of the business and ended up getting exactly what she listed the salon for.
She maintained a flexible and realistic attitude throughout, knowing that things wouldn’t always be perfect OR fast. Because of this mindset, she was prepared for bumps in the road and handled them with grace. This made negotiations smoother and ensured she stayed on track to close the deal.
Overall, Kate listened to the advice she was provided and had her expectations in line with the realities of selling her business.
Strong Salon Brand Equity
One of the major factors that added significant value to Kate’s business was her salon’s brand equity. The salon had a stellar reputation among both clientele and employees, supported by a robust social media presence and a well-designed website.
This was a desirable brand to a wide variety of salon buyers. Kate invested heavily in creating a desirable brand and business, which paid off in spades.
When potential buyers saw that they were acquiring not just a salon, but a recognized and trusted brand, it gave them more confidence in their purchase. The stronger your brand, the more attractive your business is to buyers, and Kate’s salon certainly showcased this.
Salon Business Systems in Place
Perhaps the biggest advantage for buyers was that Kate had efficient systems in place, without her direct involvement. The salon could run smoothly without the need for constant owner oversight.
Buyers were able to see that they could step in and operate the business without having to reinvent the wheel, face a steep learning curve or have fear of owner dependency issues. This level of organization is crucial in making a business more sellable and less dependent on the current owner, which is exactly what potential buyers are looking for.
The less dependent a salon business is on an owner, the more valuable it is to buyers.
Business Priced to Sell
Kate had done her homework on the fair market value of her business and received a free beauty business valuation to start. She didn’t price the salon too high and was waiting for a unicorn buyer, nor was she undervaluing her business.
Pricing a business correctly is key to ensuring it doesn’t linger on the market, and Kate nailed it. A well-priced business sells faster, and her ability to recognize the true value of her salon made the process far easier for everyone involved.
A Little Bit of Luck
As with the sale of any business, the stars need to align. Finding the right buyer at the right time is a critical piece of the puzzle- this is where the business selling magic of Salonspa Connection really paid off.
Kate got the best possible exposure to her target audience, through our services.
Fortunately, we found several great buyers and ultimately, the right buyer—someone who saw the value in her salon and was ready to take over. While luck and good timing always plays a role, the groundwork she had laid was what truly made her sale successful.
A Final Note on Selling a Beauty Industry Business
Kate’s successful sale offers a fantastic blueprint for other salon owners thinking about selling. By being ready, responsive, and realistic, while having strong brand equity, solid systems in place, and a fair price, she created an opportunity for a fast and smooth transition.
If you’re thinking about selling or buying a salon business, who you choose to work with can make all the difference- we’re here to help you through every step. Salonspa Connection hires brokers who have experience in the salon industry- something you will not find anywhere else!
With the right approach and our expert guidance, you can have a successful exit just like Kate.
Contact our salon business brokers for a free consultation, today!
