Are you thinking about purchasing an already established salon? Existing salons already have stylists, a reputation and a strong clientbase, which makes purchasing one appear to be a great investment. Although it may be a worthwhile business to buy, there are some possible drawbacks and obstacles the purchaser may have to experience. For example, there could be high turnover with a new owner and some salons may be in need of renovations or new salon equipment to stay operational.
But don’t worry! At Minerva Beauty, we are all about making sure you feel supported — whether you are purchasing an existing salon or renovating your own. That’s why we have assembled this guide that will uncover the benefits of purchasing an established salon, as well as some of the steps you will need to take to ensure your investment pays off.
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Benefits of Buying an Established Salon
Buying an established salon comes with many upsides as opposed to starting a salon from scratch. Here is what a purchaser can expect to benefit from when purchasing an existing salon:
- Established and loyal client list
- A committed staff, from stylists to receptionists and more
- A turnkey salon with equipment like high quality salon stations and decor
- Strong branding and reputation
- Existing relationships with other community businesses
- Strong inventory levels
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Questions to Ask When Buying a Hair Salon
Purchasing an existing salon isn’t cheap because of the many benefits the transaction comes with. But it’s important to enter into your talks with salon owners with a list of questions that will provide insight into exactly what you’re getting with your purchase. Here are must-ask questions to prepare for your meetings with salon owners.
- What equipment will be included with the purchase of the salon? It’s important to know whether or not you will need to invest in salon furniture or if your purchase includes everything in the salon — as is.
- How do the employees feel about the salon being sold? When you buy a new salon, it’s important to show that you care about the people there in order to avoid high turnover rates. By asking this question, you will also get a glimpse into the company culture.
- Are there any outstanding debts or other financial needs that I will be responsible for? You will want to make sure you have a full financial scope of the business you are buying so you aren’t surprised by any additional debts or financial issues.
- What is the neighborhood and community like? It’s important to know how your future community reacts to the salon you're purchasing. Is there a collaborative nature or do businesses operate in silos?
- What is the salon’s target clientele? You will want to know the kinds of clients the salon you’re interested in serves so you can continue meeting their demands as you plan to take over the salon. You also want to make sure this type of clientele is your target, too.
- What is the salon’s social media and website presence like? Establishing a digital presence can be just as difficult as starting a salon from scratch, so it’s important to make sure you are getting your money’s worth in a digital aspect as well.
Buying an Existing Salon Checklist: Assets You Need to Buy
While the salon you’re about to purchase may come with all the necessary parts to remain operational, you will need to make a few investments to liven up the business and make the salon your own. If you find yourself needing to renovate most of the salon’s equipment or update salon styling chairs, at Minerva, we offer salon equipment financing to help offset the initial investment you may be responsible for. Here is your official checklist for tools, equipment and supplies you may need:
- Salon Equipment – You may find that some pieces of salon equipment need to be replaced or updated.
- New Signage and Branding Materials – Are you changing the name of the salon you're purchasing? If so, you may need new signage and branding materials like business cards.
- New Tools and Supplies – Show your new team that you want to empower and support them by purchasing new tools for them.
- Marketing Personnel – If the previous salon owner didn’t handle digital marketing very well, you may find it beneficial to invest in a marketing professional to elevate the salon’s website and social media presence.
