Human resources
Posted: Wed Jan 22, 2025 3:13 am
Problems may arise if the commercial success of a beauty salon is determined by the efforts of key employees, clients are attached to certain specialists, and dismissed employees can damage the company's reputation out of resentment and revenge. Informal relationships between the current owner of the salon and his subordinates are also important (family ties, conflicts and personal attachments, the general psychological climate in the team).
Friendly team
Source: shutterstock.com
Before making a decision the benefit of using our database to buy a ready-made salon or beauty studio, find out how things are with staff turnover, how the staff feels about a possible change in business ownership, which employees are key, whether the owner’s relatives or friends work in the salon.
Here is a practical example . A consulting company was sold to a new owner. The period during which his investment had to pay off was approximately two years. The hired manager played a huge role in the company's affairs and actually led it to success himself, selecting a reliable team, developing extensive business connections and promoting the company in his circle. But six months after the change of ownership, this person decided to leave the company and start his own business, where he immediately took two experienced workers. In addition, he managed to lure away several large customers. At this time, as luck would have it, an economic crisis occurred, which became the final blow for the company, where the owner changed. Nine months later, it was closed.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Clients and cash flows
If a company actually serves one large client and adapts to its needs, there is a risk that it will go under if it loses it (for example, if the client finds another contractor or is unable to pay on time due to their own financial difficulties). Therefore, when buying a ready-made business, be it a beauty salon, a store or a large production facility, it is necessary to understand what its income consists of and what the structure of financial flows is. Knowing key clients and main income items, you can make strategic plans for the further development of the company.
It is possible that the business owner will try to hide from the buyer some information about sales, certain types of costs, or the company's practice of selling illiquid goods as fast-moving ones.
Read also!
"Development of a beauty salon: understanding the intricacies of the issue"
Read more
Find out, first, the monthly volumes of income and expenses over the past years; second, the share of annual income generated by the key client; third, the ratio of contributions of different clients to the total profit; and finally, fourth, the level of stability of the key clients.
Let's look at a real case . A businessman wanted to invest in a small profitable sewing production and found a suitable factory. Its business processes were organized competently, and its financial indicators looked quite optimistic. The only problem was that the factory received 80% of its orders from one client - a large industrial enterprise. There were no guarantees that it would continue to cooperate with the factory in the future. The seller of the business insisted on his price, not wanting to lower it. The negotiations lasted for six months, but they did not lead to anything - the purchase did not take place.
Friendly team
Source: shutterstock.com
Before making a decision the benefit of using our database to buy a ready-made salon or beauty studio, find out how things are with staff turnover, how the staff feels about a possible change in business ownership, which employees are key, whether the owner’s relatives or friends work in the salon.
Here is a practical example . A consulting company was sold to a new owner. The period during which his investment had to pay off was approximately two years. The hired manager played a huge role in the company's affairs and actually led it to success himself, selecting a reliable team, developing extensive business connections and promoting the company in his circle. But six months after the change of ownership, this person decided to leave the company and start his own business, where he immediately took two experienced workers. In addition, he managed to lure away several large customers. At this time, as luck would have it, an economic crisis occurred, which became the final blow for the company, where the owner changed. Nine months later, it was closed.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Clients and cash flows
If a company actually serves one large client and adapts to its needs, there is a risk that it will go under if it loses it (for example, if the client finds another contractor or is unable to pay on time due to their own financial difficulties). Therefore, when buying a ready-made business, be it a beauty salon, a store or a large production facility, it is necessary to understand what its income consists of and what the structure of financial flows is. Knowing key clients and main income items, you can make strategic plans for the further development of the company.
It is possible that the business owner will try to hide from the buyer some information about sales, certain types of costs, or the company's practice of selling illiquid goods as fast-moving ones.
Read also!
"Development of a beauty salon: understanding the intricacies of the issue"
Read more
Find out, first, the monthly volumes of income and expenses over the past years; second, the share of annual income generated by the key client; third, the ratio of contributions of different clients to the total profit; and finally, fourth, the level of stability of the key clients.
Let's look at a real case . A businessman wanted to invest in a small profitable sewing production and found a suitable factory. Its business processes were organized competently, and its financial indicators looked quite optimistic. The only problem was that the factory received 80% of its orders from one client - a large industrial enterprise. There were no guarantees that it would continue to cooperate with the factory in the future. The seller of the business insisted on his price, not wanting to lower it. The negotiations lasted for six months, but they did not lead to anything - the purchase did not take place.