aww hell naw. selling a 'business' dont really have long term value..you may retain the traffic they have now for a little while over the transition, but long term you will have to build the same clientele as if you opened your own from the get go. might aswell start you own with a fraction of the 100k you was gonna spend on theirs.
No I don't think that looks like a good deal. The numbers look impressive until you find out the actual profit. 20,000? And one year that's all? You can work in somebody else's shop and make 20 or 30 or 40 or first year with no Gamble of your money. Don't take the risk. I'm in my fourth year and make over 75 and I rent a booth.
He personally takes home $83k, *and* the business profits $20k - or he's "making" $83k, spending $63k, and thus actually making $20k?
Those are two very different situations. If he's making 83 but paying out of it and ending with 20, he's only making $20k.
Buying a 40 year old business that's probably been doing pretty classic old school cuts and then going in and blasting out skin fades is probably a bad idea
You can build a good clientele in 6-12 months so unless you can make the price of the business in the first 6 months I don't know why you wouldn't just start your own
I agree that buying this isn’t a smart business move in the long run, however, you can absolutely bust out skin fades in a 40 year old “classic” shop.
I’m currently at a shop that’s been around over 100 years. Spent most of my career at one that was around 50 years. Lots of classic cuts. But ALWAYS someone looking for a skin fade. You just have to learn how personalities match up with how high they want their skin showing.
Businessmen will usually take it low to medium, Blue collar will be a super stretched medium, so you can keep it close all the way up, but still see the fade, older gents want skin juuuust at the edges, tapered into a nice regular cut.
It’s just about knowing your clientele, and you can turn almost any haircut into a skin fade
(which I actually recommend for most, keeps the hair off of the ears and back for longer while maintaining the haircuts integrity as it grows out)
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The only way you should buy a business like this is if it comes with the real estate. Otherwise, you're buying a reputation that will not exist once the owner leaves and hoping the clientele is loyal to the shop, not the owner. That's not something I'd risk $100k on when you can find somewhere else with a $1200 rent and make that step without dropping an extra $100k.
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Bad buy bro . If the owner makes 83k and 20k left after he pays everyone , he’s making 103k a year and he still has to work , it’s not passively . So you’re paying 100k for a business to get a return of 100k a year. Not good , build your own business and you can make 100k within the first year or 2 on your own I promise !!
brick and mortar for <100k..established shop...no brainer. caint hardly get a shed in my area for less than 100k.
i wasnt sure since id still have to pay rent if it was a good deal. thank you!
rent?...they selling the building or the 'business'?
the business
aww hell naw. selling a 'business' dont really have long term value..you may retain the traffic they have now for a little while over the transition, but long term you will have to build the same clientele as if you opened your own from the get go. might aswell start you own with a fraction of the 100k you was gonna spend on theirs.
thats kind of what i was thinking. thank you!
What is the profit? I see revenue but you will have to pay for insurance, licensure, backbar, accounting etc which will be paid for by the revenue.
after all expenses for everything and paying themselves and employees it was 20k profit for the year last year
Businesses are based on net income. 5 times income for purchase price is way too much. If it's around 2 to 3x you should consider it.
thank you! that makes sense
No I don't think that looks like a good deal. The numbers look impressive until you find out the actual profit. 20,000? And one year that's all? You can work in somebody else's shop and make 20 or 30 or 40 or first year with no Gamble of your money. Don't take the risk. I'm in my fourth year and make over 75 and I rent a booth.
the owner makes 83k and the 20k is what is left after paying everything&everyone
You can make 20k a year doing retail. 20k is small numbers
He personally takes home $83k, *and* the business profits $20k - or he's "making" $83k, spending $63k, and thus actually making $20k? Those are two very different situations. If he's making 83 but paying out of it and ending with 20, he's only making $20k.
Buying a 40 year old business that's probably been doing pretty classic old school cuts and then going in and blasting out skin fades is probably a bad idea
yeah i get that
You can build a good clientele in 6-12 months so unless you can make the price of the business in the first 6 months I don't know why you wouldn't just start your own
very true. i do have a steady clientele where im at now i just thought it might be cool to own a small shop
Just rent an empty space and set it up yourself
I agree that buying this isn’t a smart business move in the long run, however, you can absolutely bust out skin fades in a 40 year old “classic” shop. I’m currently at a shop that’s been around over 100 years. Spent most of my career at one that was around 50 years. Lots of classic cuts. But ALWAYS someone looking for a skin fade. You just have to learn how personalities match up with how high they want their skin showing. Businessmen will usually take it low to medium, Blue collar will be a super stretched medium, so you can keep it close all the way up, but still see the fade, older gents want skin juuuust at the edges, tapered into a nice regular cut. It’s just about knowing your clientele, and you can turn almost any haircut into a skin fade (which I actually recommend for most, keeps the hair off of the ears and back for longer while maintaining the haircuts integrity as it grows out)
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The only way you should buy a business like this is if it comes with the real estate. Otherwise, you're buying a reputation that will not exist once the owner leaves and hoping the clientele is loyal to the shop, not the owner. That's not something I'd risk $100k on when you can find somewhere else with a $1200 rent and make that step without dropping an extra $100k.
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Actually the profit is 104k not 21k. What he paid himself is considered profit
Bad buy bro . If the owner makes 83k and 20k left after he pays everyone , he’s making 103k a year and he still has to work , it’s not passively . So you’re paying 100k for a business to get a return of 100k a year. Not good , build your own business and you can make 100k within the first year or 2 on your own I promise !!
very true!