How to Buy an Existing Beauty Salon
Figuring out how to buy an existing beauty salon is a great way to buy a business that already has an existing profit stream. Unlike starting from the ground up, making this move will allow you to immediately make money and reduce your debts. Unfortunately, it can be hard for some stylists to figure out where to go to make such a purchase. Fortunately, there are four great places to look – with brokers, among other stylists, the papers and the local Chamber of Commerce.
Working With a Broker
The easiest way to find a salon for sale is to work with a broker. Most salon owners work with such individuals to make sure that the sale goes through, and to keep the process secret. Unfortunately, working with a broker often means paying higher fees and dealing with competition, both things that will make your life more difficult. Still, finding an existing business through a broker is easier than any other method listed.
Get to Know the Industry
If you want to buy an existing business, you have to start by getting to know the industry around it. It is incredibly difficult to make the decision to buy an existing salon and to simply make a purchase. Instead, you need to get to know stylists in your area and find out which businesses are in the process of being sold. You are looking for something more substantial in gossip in this case, but any tips about salons for sale that you receive are certainly worthwhile. This is perhaps the best reason why it might make sense for even an experienced stylist to get a chair at a popular location after moving – the information that you can gain is invaluable.
Look at Trade Papers
One of the best ways to find out about salons in an unfamiliar area is to check with local papers. Between those papers focused on the local industry and general local papers, you should be able to find at least one salon that is looking for a new owner. These salons are often in a relatively poor financial position, though, as an open sale is usually a sign of desperation. Even with that said, though, you might be able to purchase the business at a price that will help you to regain your profits more quickly.
Try to be aware that finding a salon that advertises itself as being for sale is not the end of the process. You will need to do a bit of digging to figure out exactly why the salon is being sold and what its true value is. Remember, this method of finding a business does not provide you with the same level of insight as the others, so make sure that you research the business diligently.
Chambers of Commerce Connections
A local chamber of commerce is a great source of information. While it usually costs more money to join, it is a perfect place to make connections in the business world. Unlike most groups, business owners within the chamber tend to be quite free with information concerning business opportunities that can help chamber members. If you introduce yourself as someone who is looking to buy a salon, you might find that one or more members has an idea of who you could speak to.
While the Chamber can be useful, it might be difficult for an outsider to get information. As such, try to make yourself available to go to events and meet with others on a regular basis. While simply asking for information might be a good way to get things started, you might be surprised by what you can find out if you are willing to attend a charity dinner or a few meetings with other Chamber members.
Buying a salon is a big decision, but it is also a great career move. If you want to take control of your own destiny as a stylist, you should be in charge of your own business. Although not a requirement, it would definitely be a plus if you first enroll in a beauty school and complete a cosmetology course. That way, you will have the expertise required not only to run the salon but also to serve your clients.