Filters
LocationSouth Africa, Gauteng

Sector - Sales & Services

Asking Price
R249,000
Monthly Profit
R 21,008
Asset Value
R 278,090
Stock Value
R 150,000
Yearly Net Profit
R 252,099

Summary

A franchise nail and beauty salon for sale in a large, busy mall on the West Rand

Give me more information

Fully describe the business's activities?

Dream Nails is a nails and beauty salon

How does the business operate on a daily basis?

Trading Hours:
Monday to Thursday & Saturday: 9:00 am to 7:00 pm
Fridays: 09:00 am to 9:00 pm
Sundays: 09:00 am to 5:00 pm
Salon closes on Christmas and New Year’s Day
During December holidays during a 15 day period, the center is open from 9 am to 9 pm

What Advertising/Marketing is carried out?

Marketing:
Majority of the marketing is done by the Franchisor which includes the following:
Edgars - Using all their advertising platforms (including vouchers). The salon has an Edgars payment option.
Magazine Advertisements (using vouchers)
Street Pole Advertisements & Toilet Cubicle Door Advertisements
Social Media Platforms & Emailers
In-salon Promotional Posters & Gift offers (depending on the promotion)
Point Rewards systems ensure returning clients
The mall is open to using its marketing mediums as an extra cost, a free option also available.
In-house marketing includes:
SMS’s / Emailers / In-Mall Posters / Mall Tenant Discounts / Special Events / Social Media
The mall also allows the use of their social media platforms to promote the salon's specials and are always willing to assist in any way. Once a year the mall has a Health &Beauty Expo where applicable tenants can promote their businesses in various ways. The mall also contributes by other means such as Influencer Photoshoots and marketing thereafter.

What competition exists?

There are other salons situated within the mall, although, only one salon is a direct competitor.

How could the profitability of the business be improved?

Grow the services side of the business

Give a breakdown of staff/ functions/ length of service?

3 x Beauty Therapist / Nail Technician Combo (One can also do makeup)
2 x Nail Technician
1 Receptionist / Administrator / Manicurist & Pedicurist including Gel Combo

Currently, one of the Beauty Therapists is on maternity leave, a Temp has replaced her and will be considered for full time employment if she establishes a solid client base.

All ladies are excellent. The business has a low staff turnover.

The 3 Beauty Therapists rank in "Top 10 Beauty Therapist of the Month" every month within the franchise group. One Beauty Therapist ranks "Top 1" for most months. At the annual awards ceremony in 2018, two Beauty Therapists received runner up prizes for 2018- "Beauty Therapist for the Year" and "Retail Therapist of the Year". The Nail Technician & Receptionist won "Long-standing Service" for 9 and 10 years respectively. For 2019, the ladies won "Therapist of the Year" and "Retail Therapist of the Year". The salon received runner up for "Salon of the Year".

Staff breakdown is available upon request.

Do any have management potential?

Yes, but it is recommended that the business is owner / managed

How involved is the Owner in running the business?

Daily (around 6 hours per day)

When does the current lease end?

Standard lease agreement of 3 years, expires 30th of September 2021

What are the trading hours?

Trading Hours:
Monday to Thursday & Saturday: 9:00 am to 7:00 pm
Fridays: 09:00 am to 9:00 pm
Sundays: 09:00 am to 5:00 pm
Salon closes on Christmas and New Year’s Day
During December holidays during a 15 day period, the center is open from 9 am to 9 pm

What are the main assets of the business?

Shopfittings and furniture

Strengths?

Established and popular Franchise
Established and popular Mall
Growing business with further exponential growth potential
Excellent staff & Low staff turnover
Professional Products
Excellent Client Service
Edgars payment method
Good marketing in place
Franchise Support and Training Facility

Weaknesses?

Only one perceived weakness being a single direct competitor within the mall

Opportunities?

With the current staff in place, the salon is fully functioning and able to “run on its own” but a new owner / manager on a full-time basis will result in increased revenue. This would be further enhanced if new treatments and a second skincare range are incorporated and marketed (such as permanent make-up, microblading, suntanning or spray tanning and makeup).
A stricter stock issuing system can be put in place to save additional costs.
Some current expenses can be cut out completely.
The Imbalie salon next door, which specializes in skincare is also for sale through this Aldes Broker. There is an opportunity to buy both salons and merge as one. This has been done with success as combo stores within the franchise group.

Threats?

The current economic climate but even in these conditions the business has grown substantially year on year

What is the reason for the sale?

Owner emigrating

Location

Contact | Enquire

Ian

Ian Tennant

LocationSouth Africa, Gauteng

Preferred method of contact

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