High End Barber Shop w/ Many Other Services and Products-Denver, CO
They have created a very unique, modern, popular, and repeatable business model. They have consistent long waits for all of their barber services and have added new barbers this year whom will continue to increase growth and profits. They are growing fast and have a concept with the ability to add successful locations anywhere. Based on their demand, they have decided to add more barber “chairs” and have also decided to convert to monthly booth rentals to increase profitability as of November 1, 2019. This is the same concept that has been very successful for salons like Sola Salons, etc. This business is set up to continue its growth in the current location and they believe that the buyer should consider a 2nd and 3rd location. They will sell 100% or stay and keep 20% to 30% to help and participate in the future growth though new locations for “proof of concept” and to sell their remaining ownership in 3 to 5 years. They believe this is a 1.5M valuation company if there are 3 locations and it could be a lot more than that if the expansion were to add more than 2 locations but they do not have the money to open any additional locations. The model is working and once they are done with the buildout out of their current location by early November, they believe it will be creating 800K in revenues and 150K to the bottom line over the next year. It is a very fun and very popular place with proprietary software and technology used to track and show customers when it is their turn, etc. You must see the video in the data room which you will be sent after completing the Non Disclosure Agreement link above to fully appreciate how unique and popular this concept is.
For family reasons, this is being offered for only 95,000 plus the current value of the inventory estimated to be around 12K.
The trailing 12 months from October 1 2018 to September 30 2019 had earnings of 52K from revenues of 503K. The sales price is less than 2 times the trailing 12 months earnings. The revenues and earnings are growing at 19% per year and over 100% a year in earnings with plenty of room to continue to grow. They would have put a lot more on the bottom line if they hadn’t been adding inventory and expensing it as they were buying the inventory along with the disruption of converting their location from half clothes and half barber to 100% barber which has proven much more profitable. The transition is now complete.
The owners are husband and wife with her working 30 hours a week at the business. Neither have ever cut hair or provided any of their other services. The shop is in a free standing space that is beautiful on both the inside and the outside. There is a lot of walking and vehicle traffic with plenty of parking. They take both reservations and walk ins. Walk ins typically need to make a reservation and come back the next day indicating the new owner both can and should add more booths, barbers, and other services.
This business was established in late 2015 and adds new recurring customers every month. They get a lot of positive reviews as proven by their 4.9 stars on Facebook and 4.7 stars with Google. Even if you are tentative, you need to see this shop. I believe this could be either Franchised or many locations opened by the owners.