How to Sell Your Salon Business
When considering selling your salon business, first pause and take stock of what you have that would be of interest to a buyer. Let’s take a closer look at what makes a salon business unique and what it takes to successfully sell a salon.
Achieving an accurate value for your salon business is an excellent first step and one in which a business broker can prove to be invaluable. By understanding what is a reasonable price for your business, you can begin to move forward.
The next step is to make certain that your salon is currently in as good of physical condition as possible. As a result, you may want to invest in a quick renovation. If you decide to remodel, remember that working with a great interior designer and contractor is essential.
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All prospective buyers of businesses want to see a track record of proven success. For this reason, you’ll want to have your books in order. A business broker will be able to guide you on what needs to be prepared for a buyer. Having coherent and organized financial records will help a prospective buyer get a good idea as to the state of your business.
Next, you’ll want to know what terms you are comfortable with before placing your business on the market. While there are several terms to think about, one to consider is the non-compete. Prospective buyers will likely want you to sign a non-compete clause and for good reason. After all, no buyer would want to buy your business only to have you set up across the street and funnel your old clients into your new location. A non-compete clause is the protection for a buyer.
It is important to consider that unlike some kinds of businesses, a salon enjoys a surprisingly diverse range of assets. Assets can range from obvious items such as property owned, chairs, trademarks, logos and inventory, to assets that are not quite so initially obvious, such as client lists, client relationships, and salon location. Depending on what assets you have can be a determining factor on the value of your business. A salon business broker will be able to help you identify what assets your business has and an approximate value. You should also consider potential for growth, thanks to factors such impeding population growth or local developments and even licenses. A salon has many potential assets. In order to sell your business in a reasonable time frame and for a good price, it is vital that you properly index and market them to your prospective buyers.
It is important to consider that there is an intimate relationship between salon clients and the staff. People are often quite loyal to their stylists. Your prospective buyer will likely want to have a clear idea of which staff members will stay and which stylists may leave. It is highly recommended that you talk to a professional on how best to transition a business to avoid loss of staff. Businesses with a diminishing staff will lose buyers interest and in the end, you will be left with an unsellable business.
From helping you confirm your price, marketing your business while maintaining confidentiality to determining your assets and strongest selling points, a business broker is an expert in what it takes to sell a business. Salon business brokers are also experts at maintaining strict confidentiality. If clients learn that your salon is up for sale, they may go elsewhere and that could mean a drop in revenue before all the papers are signed. Working with an experienced Arizona salon business broker is insurance against this type of unforeseen turn of events.
Connect here with a Phoenix salon business broker in your area to provide you with a no obligation valuation for your business and answer any questions you may have.