Yesterday we saw the Health and Beauty Industry close its doors, as we entered into the UK’s 2nd National Lockdown. Understandably this has left many beauty business owners feeling uncertain about whether market conditions will affect the sale of their business, and many will find themselves thinking “is now the right time to sell my salon?”.
In this article, we will be sharing with you why this is the wrong question to ask and how despite current uncertainty, there are still active and serious business buyers out there who will buy your salon if you have done your research and prepared your salon for sale.
Firstly, let’s take a look at the trends during/after the first lockdown, in June 2020, as entrepreneurs seized the opportunity to set out on their own, there was a surge in new businesses registered across Britain. More than 75,000 companies were formed, almost a 25,000 rise on the same month last year.
We also know that over 700,000 business buyers were still searching the market for businesses to acquire on BusinessForSale.com.
Now let’s take a step back and look at why people buy health and beauty businesses. Most entrepreneurs’ goals include reaching financial freedom, working on their own schedule or making an impact — or all three. Whichever the goal, the better, faster way to reach it is to buy an established beauty business.
One of the top priorities for most existing businesses is the need to grow, evolve and move forward. How do you grow a business? Essentially there are two ways to develop a business; organic growth or growth through acquisition.
The first option tends to be the steady, low cost but a slow route. Maybe through new marketing initiatives, hiring more staff, and driving service sales to win more customers while looking after and developing the existing client base. Then you keep your fingers crossed that all that time and money you have just spend pays dividends.
However many businesses decide to fast track growth by acquiring an existing business. A good acquisition will bring revenue and profits, new customers, staff, new markets and territories, brands and intellectual property, the list goes on.
If we go back to the question ‘Is now the right time to sell my salon’, the answer is yes. Despite pandemics, political elections, and other market challenges. Business owners, entrepreneurs, investors and shareholders will still demand growth through buying existing beauty businesses. You can make your salon more attractive to these buyers if you spend time planning and preparing your business for sale.
If you would like to receive free and confidential advice on how to prepare your salon for sale and get the best price for your business contact our team at BuyMySalon today.