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BUSINESS REFERENCE : CQ068 / RightBiz TRADITIONAL CITY GENTLEMEN’S HAIRDRESSERS | | | | | | Upmarket Traditional City Gentlemen’s Hairdressers Confidentially offered for sale Ref No: CQ068 Location: City of London Asking Price £245000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Beauty Salons | | SALE: | Agent Sale | LEASEHOLD: | £245,000 | | | | | | | | | | | BUSINESS DETAILS: | This upmarket, traditional gentlemens’ hairdressers was established by the current owner nearly twenty years ago. Since that time the business has developed to be recognised as the premier hairdressers of choice within the Square Mile, situated as it is at the heart of the City of London.
Comprehensively fitted out resembling a City ‘club’, with traditional wood panelling, and fully air conditioned, the premises are most welcoming. Seven discrete cutting stations are available for use. A comfortable waiting area is provided with daily newspapers available.
Clients include Chief Executive Officers of many FTSE 100 companies, Earls, Lords and Knights. Many clients are well known both within and outside of the City.
Circa 70% of clients make appointments with the balance being ‘walk in’ trade.
A full range of hairdressing and shaving requisites are sold: circa £1,500 stock is held. Shaving service is also available.
Customer Service
The highest levels of personal service sit at the heart of the business: some people have been clients for many years and continue to be so beyond retirement.
Key Strengths
This is a robust enterprise with a large proportion of regular, loyal clients who have used the business for many years and will continue to do so.
Growth and Expansion
A new owner could look to further develop the business by offering an ‘in-office’ hairdressing service. This could prove to be very popular for busy executives.
Employees
In addition to the owner, who has reduced the number of clients he personally cuts as he approaches retirement, the business utilises four female and one male barber. Their length of service ranges from eight to sixteen years and they each have their regular clients.
All the barbers are self employed. They share the gross revenue each generates on a 48%/52% basis. This means that at the end of each week, each barbers total sales are calculated and they receive a cheque for 48% of that total. The balance is kept by the business as a contribution to overheads and profits.
Advertising and Marketing
No marketing or advertising takes place since most new clients are referred to the business by direct ‘word of mouth’ recommendation. The business would however benefit from direct marketing and especially the establishment of a web site. This could then offer ‘on-line’ booking of appointments.
Premises
The premises of circa 940 square feet are held on a lease expiring in 2015, with the next rent review in 2010. Passing rent is £17,000 per annum plus VAT, with business rates costing circa £7,200 per annum. A service charge of £1,200 is also payable.
In addition to the main hairdressing area a staff room, laundry room with washing machine and tumble dryer, ladies and gents toilets and office are featured.
Business Hours
Current business hours are as follows:
Monday to Friday 8am to 5pm
Financial Information
The business is being offered for sale on an ongoing concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business is financially stable and enjoys high gross margins. The current gross turnover is circa £180,000 per annum.
Reason for Sale
This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale.
Support and Training
A full period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership.
| | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CQ068 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
