How to Sell Your Hair Salon
How to Sell Your Hair Salon
Camille Albane: Let us help you sell your hair salon
Owning and operating an independent salon can be a rich and rewarding experience. Those rewards, however, sometimes aren’t as much as an owner might hope for when the time comes to sell the business.
A well-run small business should sell for two to three times what its owner is taking home after expenses. If he or she is making $100,000 a year, then the sale price should be anywhere from $200,000 to $300,000.
However, many salon owners are lucky if they get back their investment, because salons aren’t always the best buy. That’s because the single-location salon is likely home to stylists who can, and will, take their books of business elsewhere when the owner sells. The buyer is likely well aware of that, and knows that he or she will be doing a ground-up rebuild of the business. That includes a name change, redecorating, hiring new support staff … in short, all the things to begin a new business. If that’s the case, all they’re doing is buying out the current owner’s lease, and maybe some furnishings. That won’t fetch much.
Camille Albane wants you
On the other hand, when Camille Albane looks at a salon, they have several different factors in mind. If a salon is in an upper middle-income area, has between 1,200 and 1,600 square feet and is doing sales of $250,000 a year or more, then it’s of interest. Add to that a group of stable and experienced stylists, and it’s even better. When all those factors are in place, Camille Albane usually comes in with an offer that’s at least twice the current earnings — and usually outpaces anything else on the table.
Obviously there are other factors to discuss, such as the length and terms of the current location lease, but if the above criteria are in place, then the rapidly growing national brand of Camille Albane is interested in the site.
Owners can stay post-sale
Selling a business that’s been heart and soul is never easy for an owner, and Camille Albane knows that. Stylists love what they do, and for the many who open their own salons, having to take their name down can be a disappointment. But the rigors of running a business, as well as trying to keep up with cuts, colors and other trends, can just be too much.
That’s why a sale to Camille Albane doesn’t mean an exit from the beauty industry. Many owners work at their former salons following the sale, usually helping a professionally trained general manager get up to speed, introducing new stylists to existing clientele and otherwise helping the new team settle in. Then he or she can go back to being a stylist and building back up that book of business that suffered during the ownership days. Many former owners report that in just a few weeks, they’re happier, less stressed and remember why they wanted to get into the business in the first place!
Of course, the owner may want to take the solid profit that he or she has earned from the sale to Camille Albane and venture into another area entirely. Because of the top price garnered for the salon, that freedom of choice is now attainable.