Are you planning to take over a hairdressing salon? You knocked on the good door! This article brings together valuable tips to help you make your project a reality.
Taking over a hairdressing salon, instead of starting one from scratch, has a big advantage: it will allow you to recover an already existing clientele and minimize the project’s risk.
It is essential to pay attention to certain key points:
Analysis of the premises used by the resumed hairdressing salon
Above all, it is essential to check that the room of the current hairdressing salon is well suited to your needs because you will arrange it, but not change it!
Here are some points that must be checked:
- Is the room large enough?
- Is it well laid out, or will you need to plan some development work?
- Does the room meet safety standards?
Also, be careful to carefully study the commercial lease of the former owner, particularly the clauses governing the evolution of the rent.
Study of the location and competition near the hair salon
Second, it is necessary to consider the location of the hairdressing salon that you want to take over:
- Is the living room easily visible from the street?
- Is it located on a sufficiently busy street?
- What about accessibility by public transport? Is there a parking lot nearby?
- Has the town hall planned any town planning work that could impact the visibility of the show?
And what about the competition:
- Are there other hair salons in the neighborhood?
- What is their commercial positioning (men, women, mixed, low-cost salon, etc.)?
- Are your competitor’s lounges full, or are they struggling to attract customers?
The goal here is to ensure that the location has good commercial potential, i.e., there is sufficient demand given the number of salons located in the area.
Analysis of the hairdresser’s clientele
Taking over a hairdressing salon involves finding out about your existing clientele because it is above all what makes the goodwill value.
Here it is important to verify that the clientele is satisfied and loyal and that the profile of current clients is compatible with the plans you have for the development of the salon:
- What type of customers are: regular or passing customers?
- Are customers more male or female? What is his average age? His socio-professional category?
- Are customers satisfied with the show’s current offer: quality of service, price, atmosphere?
Remember to find out about the clients the former manager looked after personally: will they stay if you take over the salon?
Analysis of hairdressing salon equipment and materials
It is also essential to carefully analyze the equipment already present on-site to determine whether investments will be necessary.
In what condition are the workstations, chairs, shampoo basins, hairdryers, and other hairdressing accessories? Will it be necessary to replace them shortly?
What about the stock of products: does it contain unsaleable or expired products?
Study of the business strategy and reputation of the resumed hairdressing salon
The commercial strategy’s objective is to identify the means to be implemented to attract and then retain the clientele of the show.
Therefore, it is important to study the actions put in place by your predecessor, evaluate the cost and results, and modify the strategy if necessary.
Today, most businesses have visibility on the web. It is therefore also essential to investigate the reputation of the barbershop before buying it out. Indeed, if the current reviews are negative, you will need to incur more marketing costs to change this image.
Analysis of historical financial performance
To assess the potential for profitability and build a business plan for your hair salon, you will need to analyze its historical performance.
To do this, you will have to delve into the accounts of past years and focus more particularly on the following elements:
- changes in turnover: is it stable, growing, or declining? Why?
- Changes in costs, particularly in the wage bill: do they seem to be under control, or are they increasing?
- Gross Operating Surplus: is the show profitable at the operational level? Is the margin stable?
- Working capital requirement: does the show have stocks of unsold products that weigh on cash flow?
- Operational cash flow: does the company generate sufficient cash to allow regular equipment renewal and cope with loan repayments?
Remember to analyze the seasonality of the activity you are taking over. If the show is subject to a strong seasonality, you will need to keep a sufficient cash reserve to hold during the low season.
The choice of the takeover scheme of the hairdressing salon
There are several ways to take over a hair salon:
- Buy the goodwill by creating a new company
- Buyback the company’s shares from the previous owner
- Opt for lease management
Let’s see more in detail.
Buy the business by creating a new company
To take over a hairdressing salon, the first possibility is for the buyer to create a new company, which will acquire the fund by buying all or part of the salon’s assets.
With this arrangement, the takeover’s financing is then set up at the level of the new company.
You can contact at barbershop business plan for assistance.