Any tips on selling my beauty salon

[ckjustpamper]

Hey all,

I have an extremely well established beauty salon that i have had now for 5 years. I have decided to part with it. My partner thinks i am barking mad due to the money that i take but to be totally honest my heart just is not in it anymore. I have started a second business part time and it has taken off extremely well at home in something else and i know if i can put my time and attention into that instead and get more time with my children then i will be extremely happy.

I have until March 2016 left on my lease agreement and i have one last quarter payment at the salon due Christmas Day funnily.

I know i have first referral from my land lord and if i can find a new tenant for the salon i will not have to worry about putting things back to how they were previous (sounds all fine and dandy!).

I know the new agreement between tennant and landlord has nothing to do with me - but will i still be allowed to sell my business? I have no idea about this as it has only been something i have recently considered. I will happily allow them all the equipment and products i have currently in the salon. Not sure the pricing structure i should think about and not sure on the client list is that ok to sell to them? Obviously i know it is down to the client to use them obviously. Just completely at a lose end here as it is totally new!?

Also where would i advertise my salon any suggestions? I am so unfamiliar with this all - i did not want to do it locally in the paper or online of a forum due to my ladies seeing it and possibly getting upset.

xxx

 

[KHS]

Yes you can sell it. You do it as "A going concern" I sold my lease in April and was the best thing I did!

Obviously you'll need to tell your landlord your selling it, he'll know all about this and has probably had his leases sold before.

You'll need a solicitor, they'll know all about this and how it works so don't worry, the new tenant will need one too. You both with split the cost of the landlords solicitor too.

The buyer will need a copy of your lease to look at, a copy of your accounts. Possibly 3 yrs worth. All your outgoing bills, water, electric, business rates ETC

I priced mine on how much I took, added on all stock, fixtures and fittings (you'll need to state everything on paper what's included in the price) at market second hand value obviously stock priced at what you paid for it) , if you employ staff, they're included in the sale, it's up to the new tenant what they do after they've bought it. But generally you sell the whole working business, staff as well. If you have self employed staff, they stay to - if they wish as it adds to the overall income to the business.

I sold mine on "RightBiz" paid the small fee, and you get a whole page to really showcase your salon. I had 7 buyers within 3 days from all walks of life, charities to estate agents wanting it for a shop, office all sorts as it was in s prime location. So bare that in mind. You sell it as it is, lock, stock and barrel, it's up to the new tenants to do with it what they will.

Good luck

 

[KHS]

Oh...and research your solicitors too!! They generally charge around £200-250 per hour, don't panic they take their cut at the end after they and the landlords solicitor has been paid as all monies are held by your solicitors until completion date and pay you what's left out of the sale. My lovely solicitor capped her bill at £2,000 + VAT that's it, job done

Feel free to inbox me at any point before and during the sale, I'll be more than happy to help where I can x

 

[Beansy]

Google 'business transfer agent' - they can market and sell your business for you. They are similar to an estate agent but for commercial transfers. I've used Kings in the past and they were good. They will also only release details on a need to know basis so you don't have to have photos on the website or a board outside etc

You'll also need to get a solicitor. From memory, I was quoted between £800 and £1500. In the end I went for the more expensive (mainly because I was impressed with the questions he asked), but I did also negotiate. I was glad in the end as for a variety of reasons it became very complicated and I knew I was in safe hands.

You can sell the business but whether the landlord will want to continue with a salon is the primary issue. As there isn't long, out of courtesy, I'd be honest with him. The reality is he could be fine with it or he could decide this is an opportunity to do something else.

Usually when you buy a business you are buying 3 things-
Lease
Fixtures & fittings
Goodwill (client lists)
Stock is optional (depends on age & whether someone can take over existing supplier contracts)

Each has a financial value which you'd need to agree. In addition your price will consider the value based on your turnover. There are various ways to price a business but the easiest is multiples of your net profit e.g. 3 times what your net profit is.

In order to prepare for any viewings, I would start putting together-
Info re. Suppliers
Last 3 years of accounts
Utilities costs
Any staff info (if subject to TUPE)
A copy of the lease

All of the above will be needed for anyone doing due diligence on the business.

Good luck- sounds like you've got a really exciting time ahead. If you've got any questions feel free to PM.

 

[Lapixstrel]

Where is your salon?

 

[ckjustpamper]

Where is your salon?

Oh my gosh i am so embarrassed i have just seen this. It is in Maidenhead Berkshire xx