Important Things to Consider Before Buying an Existing Hair Salon

19 May 2020
 Categories: Real Estate, Blog

The process of seeking out and buying your own hair salon can be a daunting task. You need a place that is going to be attractive to customers and suitable for your business operations. Buying an already established building means you have to be especially particular during the shopping process.

Here is a look at some of the things to consider as you shop for a salon for sale.  

1. Find out why the prior salon went out of business. 

You can learn a lot about a business location for sale by learning about the business that occupied the space prior. If possible, work with the real estate agent to find out why the salon that was there before went out of business. It is not uncommon for some problems to translate to a new buyer, and this is definitely not what you want. For example, if the prior hair salon went out because their operating expenses were too high, it could mean the building itself is not efficient. 

2. Look into the neighboring business models to make sure the salon fits in. 

Salons can be expected in certain areas, but they sometimes get placed in parts of town that don't really align with the service. For instance, a salon in a district of businesses that are mostly professional in nature, such as law and marketing offices, may not do so well.

3. Take a look at the salon equipment still in the building. 

You will likely come across some salons that will be sold with some equipment still intact. For example, there may be a commercial washer in dryer in the back for laundering towels and capes. it can sometimes be worth it to buy the salon that still has some equipment in place because this may save you money on development costs after you purchase the building. 

4. Get an estimate on future property taxes. 

Property taxes for a commercial property can be substantially higher than what they are for a residential property, especially in some areas. It is always best if you know what property taxes will be annually for any property you are considering. 

5. Assess the maintenance requirements of the property. 

Maybe you have found a salon that has a really large parking lot and gorgeous landscaping. These can be desirable attributes for certain. However, these attributes can also mean there will be more property maintenance costs. For example, a large parking lot means more money to pay for resealing the asphalt every year. Make sure you consider whether your business will have room in its budget for these extras.