5 Expert Tips for Selling a Beauty Salon

Declining unemployment has led to an increase in demand for personal care services, and the beauty industry is no exception. The salon industry has shown a growth rate of 2.4 percent over the past five years. If you’re considering selling a beauty salon– whether a hair salon, nail salon, or skin care business– it may be the ideal time to cash in on your hard work.

How to Sell a Beauty Salon

Refer to the following tips to successfully prepare your small business for sale and find a party interested in buying your beauty salon.

1. Develop an Exit Strategy

Whether you’re selling because you are ready to retire, or moving onto a new business venture, developing an exit strategy makes the process of selling a beauty salon less overwhelming. Your exit strategy should give potential buyers assurance that your salon is thriving and will continue to be successful. As you begin to develop your plan, keep in mind the following questions:

• When do you want to exit the business?
• Will you stay with the company after the sale to help the new owner get acclimated?
• What figure sale do you need to support your future?
• Will your stylists and supporting staff continue with the salon under new business owners?
• How will the transfer of ownership take place?

Answering these questions while planning your exit strategy can help simplify the selling process. Of course, it’s always best to consult a professional advisor to create a smooth plan for exiting and selling your beauty salon.

2. Organize Your Books

Another crucial step when selling your beauty salon is getting all of your paperwork in order. Prospective buyers will want to inspect every aspect of your business, especially financial details. As you begin speaking with interested parties, be sure to locate and organize tax documents, contracts, and lease paperwork.

3. Secure a Professional Business Valuation for Your Beauty Salon

There are many different approaches to calculating how much a salon business is worth, and things can get complicated. Hiring a professional business broker or another related professional to assess your beauty salon can help determine a fair valuation and keep emotional attachment out of the equation. Having a third-party value your business will help you identify and firm and reasonable sale price.

4. Strengthen Your Weaknesses

Before listing your beauty salon for sale, make sure that it’s in excellent shape to attract the best offers. Take a critical look at your business and assess areas that could be improved. Note weaknesses in your daily operations, marketing strategy, and even the building itself and then develop and commit to an action plan. While there are many ways to improve your business and increase its value, specific ways to add value to your beauty salon include:

• Investing in modern beauty equipment and technology;
• Beginning to sell beauty products to increase sales;
• Expanding your services, particularly with natural and organic salon products; or
• Offering incentives to current customers, such as a rewards program

5. List Your Beauty Salon for Sale

Once your beauty salon is ready, the final step is to list the business for sale. It’s possible to list your business independently, but it’s best to enlist the aid of an expert. A professional business broker not only has the experience to market your beauty salon successfully, but they can also manage most of the grunt work so that you can continue handling day-to-day operations. Listing with a business broker will give you peace of mind while making sure a larger pool of potential buyers sees your salon.

If you’re ready to sell a beauty salon, locate your nearest Sunbelt Business Brokers office! Our professional business brokers have years of experience connecting buyers and sellers and are ready to help you sell your business today.