How people accessed many personal care experiences changed during the pandemic, but the industry adapted in many ways like by going online with their products or taking a more natural approach. The world has reopened, and beauty-based companies continue to rebound, so you may be asking—is now a good time to sell.
Selling a beauty or personal care business is not very different than selling any type of business. The crux of the process rests on how well your business is competing in the market.
Other issues that can impact the sale of your personal care business, include if you own your location, how many other similar beauty businesses are in your area and what’s the condition of your salon.
Beauty or personal care business include:
· Hair Salons
· Skin Care and Massage
· Tanning Salons
· Makeup Application/Beauty Bar
· Nail Salons
· Day Spas
· Beauty Supply Store
· Body and Ear Piercing
· Waxing and Hair Removal
· Brows and Lashes
At Transworld Business Advisors, we’ve had years of experience selling a range of beauty businesses. In fact, the personal care industry historically has been Transworld’s second highest segment of businesses sold.
Despite a minor pandemic-related dip, the industry has been rebounding nicely. Much of the credit for this comeback goes toward the resurgence of weddings, and events and travel as people have clamored to reconnect with friends and loved ones.
There is no doubt that people are eager to get back to normal. What’s more, they also want to feel better about themselves, both inside and out, which is fueling the need for businesses centered on beauty and self-care.
There’s tremendous room for growth in the beauty industry. If you’ve been concerned that the market is over saturated, never fear. Year after year, the personal care industry has shown high margins and recurring purchase patterns. The key has been in the industry’s ability to change with its consumers.
Location is everything. The old saying is true. A variety of factors come into play in terms of location and what will make your business attractive to a buyer. For instance, what kind of foot and/or road traffic does your location receive? Is it hard to get to? Is parking a challenge?
Whether you own or lease your space also matters. The traditional model is you own a beauty business, and you hire talent to work there. You pay them and handle all bookings. Another option are beauty businesses that rent spots to individuals who then handle their own clientele and income. The final type of beauty business is suite based. In this example, you own a large area that contains small rooms that are then rented out to different beauty-focused businesses. These individuals pay rent and are responsible for their own insurance.
The distinctions matter because if you lease your premises, whoever buys your business will be assigned the lease and takeover rent payments. However, if you own the space, then you have a choice to make. You can retain ownership of the building and lease it to a new purchaser, or you can include the building within your sale.
What’s the physical condition of your space? This is a final factor that influences how easily your beauty business will sell. You’ll want to do an honest appraisal of your assets. Are all your permits in order? Do you have a great staff already in place? Is your equipment current and in good working order? What is the appearance and general aesthetic of the space? Finally, cleanliness and health standards are more important than ever. Having all these factors in place and up to date will make your business more appealing to buyers.
Steps to Selling Your Beauty Company
There are many reasons why you’ve come to the decision to sell your beauty business. Transworld can help.
1. Accurately valuing your business. This is important because you want the best price for your years of hard work and effort. It also matters to help fuel your next adventure, whether that’s a new business or simply taking some time for yourself and your family. Transworld has a FREE business valuation calculator tool that can help you start on the path of selling your beauty business.
2. Get your assets and financials in order. Part of this process will include reviewing all inventory and equipment; reviewing cash flow, profits and revenue; assessing other assets like reputation, customers and branding.
3. Find the right broker to sell your business. Transworld business advisors has years of experience brokering the sale of businesses, and we’re here to make the transition simple for you.
Contact Transworld Business Advisors to schedule a FREE consultation today to get started.