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 other 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 the overall 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 personal care businesses. In fact, the personal care industry historically has been Transworld’s second largest segment of businesses sold.
Despite a pandemic-related dip, the industry has been rebounding nicely. Much of the credit for this comeback goes toward the resurgence of weddings, 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, including taking additional safety precautions and upping the experience overall. A buyer would be eager to purchase a successful business and grow it.
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. There are three main models in this space:
1. Traditional Model. You own a beauty business, and you hire talent to work there. You pay them and handle all bookings.
2. Booth Rental. he business owner rents space to individuals who then handle their own clientele and income, and the owner may also collect a commission.
3. Suite-Based. The business owner owns 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 either keep the property and lease it to a new purchaser, or you can include the building as a part of the sale of your business.
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 (also properly licensed) 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 financials in order & ALL the assets of your business.
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. Another valuable asset is your staff. Whether they are booth renters or your staff, satisfied employees with a loyal follow add significant value to your business.
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.
Click HERE to contact us to schedule a FREE consultation today to get started.