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Salon And Spa With Real Estate For Sale

Not Disclosed, Wisconsin, US
Asking Price:
$1,300,000 Furniture / Fixtures included
Sales Revenue:
$1,096,276
Cash Flow:
$134,545

A high-end salon and spa between Madison and Milwaukee is a luxurious establishment that offers a wide range of services catering to the needs of its sophisticated clientele. It provides a serene and upscale ambiance where customers can indulge in premium beauty and wellness treatments.

With an upbeat atmosphere, the salon and spa create a vibrant and energetic environment for both guests and staff. The focus on education ensures that the salon and spa stay up to date with the latest trends, techniques, and products in the industry. This commitment to continuous learning allows the salon and spa to offer cutting-edge services and deliver exceptional results to their clients.

Guest service is a top priority in a high-end salon and spa. The staff is trained to provide personalized attention, ensuring that each guest feels valued and pampered throughout their visit. From the moment they enter the salon to the time they leave; every aspect of their experience is carefully curated to exceed their expectations.

Overall, a high-end salon and spa between two big cities combines luxury, education, and guest service to create a haven of relaxation and beauty where clients can escape the hustle and bustle of city life and enjoy a truly indulgent experience.

The owner has an excellent staff in place (they are all W-2 employees). She has hired support staff to help run the business. The owner spends about 25 hours a week with clients and then spends about 15 hours a week on administrative tasks and employee relations. The owner's benefit has decreased from 2021 to 2023 because of the added staff. The extra staff has allowed the owner to work less and focus more on her clients and mentoring.

Property Information

Real Estate:

Real Property Included

Premises Details:

The facility was built in 2005. The owner had run a salon for about 10 years prior to opening this location. She had the facility designed to accommodate her clients and staff comfortably. The location was updated in 2019. During the COVID pandemic they also installed a high-end air scrubbing system. She has extensive cleaning and organization protocols in place to keep the facility looking like new.

The parking lot was repaved in 2022. There are no pending repairs or updates needed to the building.

The facility is 5,144 SF, and sits on approximately .79 acres. The owner pays rent to a real estate company she owns. The rent paid in 2023 was $81,200.

Business Operation

Expansion Potential:

The business is only open 38 hours a week. With recruiting and possibly adding some stylists that lease chairs (a hybrid model) and adding other services (microderm abrasion and aesthetic services).

Competition / Market:

Nailing it: Continued growth in household income will fuel revenue growth

"The Hair and Nail Salons industry offers haircuts, facials, makeup application services, hair modification treatments, as well as deluxe spa manicures and pedicures. Demand for these services mirrors broader economic performance since economic growth boosts consumer spending on personal care products and services. New products and services have favorably contributed to industry revenue growth in recent years. However, COVID-19 caused revenue for Hair and Nail Salons industry to plunge in 2020. Although hair and nail salons have since reopened, hair and nail salon revenue has shrunk at a five-year CAGR of 2.3% to $67.4 billion through the end of 2023, including a 0.9% decline in 2023 alone.

"Stable profit and low barriers to entry have attracted new companies to enter the industry, most of which are non-employers. Online platforms such as Instagram and Facebook have provided a convenient and low-cost marketing strategy for many stylists and technicians to garner new clientele. Surging service prices and consumer spending on high-margin merchandise and services have also fueled revenue growth.

"Revenue for hair and nail salons is projected to rise at a five-year CAGR of 0.9% to $70.6 billion through the end of 2028. As household income inches upward, consumer spending and demand for premium personal care services will grow. Consumers equipped with larger budgets are likely to continue favoring professional salon products and services, such as hair coloring services, over less expensive alternatives sold at drugstores and supermarkets. Environmental sustainability concerns are expected to become more prevalent over the coming years, driving salons to offer a wider array of eco-friendly products that appeal to trending consumer preferences. Specifically, nontoxic products will likely drive-up hair and nail salon revenue, as well as benefit staff and patrons."

Source: IBISWorld Executive Summary

Reasons for selling:

Owner would like to scale back her hours and just style hair for a few more years.

Trading hours:

Tues-Fri 10am-8pm; Sat 8am-2pm

Employees:
6 FT/7 PT
Years established:
19

Other Information

Financing available:

Lender pre-screened with $137,500 down.

Furniture / Fixtures value:
$187,945 - included in the asking price
Inventory / Stock value:
$28,379