Salon Business for Sale

The beauty industry is ever-popular in South Africa, and a great choice for buyers to delve into when looking into buying an existing business. Even after the decimating effects of COVID-19 on the economy, the beauty industry is standing strong, as people prioritise self-care. There are factors to keep in mind to ensure that you develop a successful business plan, before you invest in a salon for sale.

Business for Sale

09 April 2021

Summary

The beauty industry is ever-popular in South Africa, and a great choice for buyers to delve into when looking into buying an existing business. Even after the decimating effects of COVID-19 on the economy, the beauty industry is standing strong, as people prioritise self-care. There are factors to keep in mind to ensure that you develop a successful business plan before you invest in a salon for sale.

Beauty Salon for Sale: Tips for Success

A salon provides a very personal experience for its customers, and so it will rely heavily on good company culture, employees with exceptional skills in their respective roles, and a soothing space where clients can feel relaxed and at ease.

It’s not all incense and herbal teas, however. Buying a salon for sale will take careful planning and strategising to ensure it is a successful investment.

Factors of a Typical Salon

Every salon is different and will have different considerations – it may be a basic nail salon, or one that does hair and nails, or even one that requires private rooms for massages and waxing purposes. It’s important to keep these in mind, although there are common factors in every salon.

• Licenses and permits: The benefit of buying an already-established salon is that paperwork is probably already in place. Businesses need certain licenses and permits to operate, and salons will need compliance and health and safety certificates. It’s important to establish that these are in place and up to date.
• Location: The salon you have your eye on will already have a rented or bought space. Keep this in mind when it comes to expansion, offerings to your surrounding target markets, existing client base, etc. A salon in a shopping centre or strip mall with lots of passing trade and feet will be a more lucrative investment than a home-based salon.
• Employees: When buying an existing salon, the clients have developed relationships with the staff, so it’s valuable to keep them; they know the business, and specific working processes, thus it will make the handover smooth. It’s important to look at your budget and offering and decide whether you need more or less staff and whether you want to upskill the staff you already have.
• Assets and Inventory: A salon requires a lot of equipment, and many may not be top of mind when you’re planning your budget. You’ll need to remember everything from chairs, tables, COVID-screens, sterilisation equipment, nail and hair equipment - down to the last comb and nail file. Most of this should already be in place, but salons will require stock replenishment regularly, and the replacement of equipment that gets used daily.

Whether you’re looking to sell your existing business or to buy a salon, we have the platform you need! Contact us for more information.