Market Overview – August
With only 4 weeks left to the end of winter, now is a perfect time to wrap yourself up, and enjoy a warm cup of coco and start looking at all the bargains on our books. Many sellers are finalising their financials for the tax year, so you will be able to make up to date decisions on the best investment for your budget.
September is a key time for people to invest in Salon for Sale as it marks the start of spring and the run up to Christmas. Best thing to do this time of year is start looking at quite a few possible salons and then make offers on the sites you like. Settlements for salons bought in the next few weeks will be in mid to late September.
Business Strategy Idea
We often get asked what the difference is between a Fully Managed, Partly Managed and Owner Operator salons.
A Fully Managed salon is the best you can get, the owner is often not from the industry and runs the salon like a business doing all the back end. For example Paying Wages and Bills. – These sites are good for investors who want a “Business” not a job.
A Partly Managed salon usually has an owner that comes in less than 20 hours per week. The owner could work on reception or on the floor looking after clients and sometimes produces income for the business. Often these sites can be turned into Fully Managed salon by promoting the part time salon manager into a full time position.
A Owner Operator salon has a hairdresser or beauty therapist working in the business on a full time basis and this type of salon is not suited to an investor unless the net profit including the owners wage is over $100K. Owner Operator sites can be turned into managed sites over a period of time however the owner needs to work their way out of the business which often can be difficult without the right strategy.
Bruce is the Director and Owner of Benchmark Business Sales and Valuations – a dynamic business focused on helping business owners to realise the maximum Business Value by connecting them with the most suitable buyers. With a career spanning 20 years, Bruce is passionate about helping his clients and his team of Business Brokers around Australia to achieve positive results.Publisher: benchmarkbusiness