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    1 Reply Latest reply on Sep 15, 2009 3:54 PM by TheSoloGuide

    Opening a hair salon!!!! But... Need advice....

    dmarie10 Newbie
      So many hair salons are for sale for great prices online. I never realized this was an option, so before I was thinking I had to start somewhere from scratch. Now that I see I have options to purchase somewhere fully equipped, where do I go from here? Do I get a business license? If so in the current salons name or my salon name?

      Is it hard to get a business loan for $55,000.00? If not, whats the best place to go?

      Experts please direct me in what to do next. These opportunities are coming faster than I thought. Thank God for salons that are already fully equipped because I can make it me from here on out.

      WHAT's my next move?
        • Re: Opening a hair salon!!!! But... Need advice....
          Tracker

          Dmarie10:

          Get yourself a qualified business broker in the area - and hopefully one that has some experience in buying / selling hair salons. The sellers will have a broker for their business, but this is there broker who has special fiduciary responsibilities to protect THEIR best interests. You need a broker that will protect YOUR nest interest. Their broker can sign an agreement to work as a dual agent - meaning supporting both of your needs, but I recommend that you get the broker that has the best experience and you believe will work to get you the best deal.

           


          A good broker should be able to review and help with a realistic sale price of the business. They will guide you through the process necessary for getting the appropriate licenses and if well connected in town can put you in touch with lenders / banks that can speak with you regarding requirements for securing a loan.

           


          If this is your first business that you will own, buying an existing business can be a great way to go versus starting one from scratch - especially if you don't have a strong business executive background.

           


          It will be critical for you to get the true reason why the current owners are selling the business. Many will put "wants to pursue other interests" meaning they aren't making money. Although your broker should get you the businesses last three years' books to see how profitable they were and how much discretionary income is available for you.

           


          If there is more than one salon for sale and others in the area, take an assessment of the perception in the community of the salon that you plan on purchasing. Does it have a strong loyal following or has it lost many customers that will be hard to get back?

           


          Hope this helps.

           


          Doug Dolan

           

          The Solopreneur's Guide

           

          http://thesologuide.com/