A SellerForce® offering, this business is a hair salon that provides a range of styling services for clients. In the past 3 years, the company has grown to offer 21 different services and has cultivated a very loyal customer base. Today, their Repeat Customer Rate ranges between a whopping 85-90%.
The company has become well-established in La Mesa, Calif., where the hair salon is based, and where the company hosts community events. With 30+ customer visits daily and sales on their eCommerce shop rising quickly, the company is now enjoying 74% SDE margins.
This is a profitable business for another reason: the business requires little to no additional working capital to cover its basic overhead, enabling the company to maximize profits. The company also generates revenue at its salon from hair stylists renting space as independent contractors. These rental payments cover most of this business’s monthly overhead, while their low churn rate of just 5% and high number of upsells are also helping the business grow.
Those customers are providing the company with a key marketing tool: word-of-mouth referrals and glowing testimonials about their services and products. The company appeals to customers of all ages, who now spend between $600 and $1,000 a year at their shop, having made it their regular stop for expert hair care.
In addition to customer referrals, the company is building brand recognition through its posts and videos on Instagram and runs PPC ad campaigns on Google to boost visibility within the community. Their online videos have been effective in showing the results of their grooming services.
Another asset this company provides to a new owner is an email database with 1,870+ subscribers, and there is an informative blog on the company’s website.
The company has been featured in news profiles by local network affiliates. A new owner could easily scale this company, including by renting space to more hair stylists and selling products online. The company could also invest in additional digital marketing tools, including having the website fully optimized for SEO keywords to help the site get solid rankings in search engines, and promoting their video marketing on sites such as TikTok and YouTube.
Key Valuation Points
- 74% SDE Margins
- Minimal Working Capital Needs to $5K/Month Overhead
- 30+ Customer Visits Daily
- 90% Repeat Customer Rate
- High 90% Customer Retention Rate
- Low 5% Churn Rate
- $1,000 Lifetime Customer Value
- 1,870+ Clients in their Database
- Well-established Brand in their Local Market
- One-stop Shop for Adults and Children
Contact Seller Force today to learn more about this unique investment opportunity.
Listing ID: SF505
