Busy, Successful Hair Salon For Sale In Shrewsbury

Business Overview

Brief: Busy, Successful Hairdressing Salon, based in the county town of Shrewsbury.
Location: Shrewsbury
Established: 1989
Asking Price: £115,000 

 

History

1. Establishment 

   The business was established in September 1989 when the current owner, purchased the property and the hairdressing business. The salon had been operating at this site since the 1960s.

2. Challenges Along the Way

• Qualification: Director faced the initial challenge of becoming a fully qualified hairdresser, achieving City & Guilds NVQ Level 3, and attending various courses over 10 years, including those by Toni & Guy, Vidal Sassoon, and Wella Academy. 

• Recruitment: Director aimed to staff the salon with four full-time hairstylists and one trainee. By 1998, she successfully recruited a competent team, allowing the business to thrive and plan for further expansion. 

• Salon Extensions: The salon underwent two extensions in 1992 and 1994 to accommodate additional staff. A major conversion in 2010 created separate entrances for hairdressing and beauty/hair replacement services. 

• Publicity: Publicising the salon to attract more customers was crucial to cater to the increased staff numbers. 

3. Successes Along the Way

• Customer Growth (Late 1990s to 2010): 

• Salon extensions in 1992/1994 doubled the salon’s size. 

• High standards of hairstyling and a growing local reputation. 

• Newspaper coverage for Director’s participation in national competitions and charity performances. 

• Positive social media reviews. 

• Business Growth (2010): A third salon layout conversion enabled growth in hairdressing, beauty, and hair replacement/integration services. 

 

Current Position

Since 2018, Director has been working part-time to care for her elderly husband. The salon now operates with three self-employed part-time hairstylists, including Director, and a part-time beautician. Services include eyelash extensions, manicures, pedicures, and microblading (starting January 2025). Director and two other stylists also offer Japanese Thermal Permanent Hair Straightening and Hair Replacement/Integration services. 

 

Staffing

• 3 part-time self-employed stylists plus Director. 

• Total working hours: 70 hours/week (compared to 160 hours/week for four full-time stylists). 

• The salon has seven hairdressing positions. 

 

Turnover/Net Profit

• Annual turnover increased from approximately £60,000 to £70,000 (June 2024). 

• Annual net profit increased by 10%, reaching £40,000 in June 2024 (excluding rental value of £14,400). 

 

Future Opportunities

The current part-time stylists generate sufficient income to cover salon expenses, including rent. Opportunities exist to: 

• Increase the number of skilled stylists/apprentices (full-time or part-time). 

• Replace Director’s expertise with a similarly qualified stylist in hair straightening and hair replacement. 

 

Plans for Growth

• Population Growth: The population of Shrewsbury is approximately 77,000 and is forecast to increase by 9% to 84,000 by the end of 2024, with a further 19% increase in the longer term. This population growth presents a clear incentive for small businesses, particularly hairdressers, as the demand for quality hairdressing services remains high. The salon is conveniently located to meet this demand. 

• Recruitment: Recruiting more stylists and an apprentice will be crucial for the next phase of business success. 

 

Trajectory of the Business

• Salon IQ App: Director has invested in Salon IQ, a powerful salon software app for online booking management, staff performance, and marketing. Fully utilising this app can elevate the salon’s business operations. 

• Web Presence: The business has two well-established websites, Rainbow Connection Salon and Hair Confidence, both of which have excellent exposure on Google, Facebook, and Yell.com. These sites are regularly updated and can be easily reviewed by potential customers. 

 

Key Details

What the Company Does The salon operates a fully functional hairdressing and hair loss business with well-trained and experienced stylists. 

Location The salon is situated on a busy main road approximately 2 miles from the county town of Shrewsbury and within walking distance of a large retail park. It is surrounded by several large housing estates and a mix of high and middle-class residential properties. The salon offers three private parking spaces and nearby street parking. A regular bus service runs from outside the salon to the town centre and other destinations in the Shrewsbury area. 

Asking Price Recommended by Forbesburton: £115,000 

 

Financials (Last 3 Years Turnover and Profit Before Tax) 

• Turnover: 

• 2022: £64,000 (including government COVID grant) 

• 2023: £60,000 

• 2024: £70,000 

• Profit Before Tax: 

• 2022: £34,000 

• 2023: £36,000 

• 2024: £46,000 
• (*No deduction of rental value £14,400/annum) 

 

Director’s Reason for Sale

• Retirement, age 76 years. 

• The business benefits from recruiting additional qualified staff up to 6 stylists to expand the business. Continuous monitoring and necessary actions are required, which Director is unable to provide upon retirement. However, Director is prepared to act in an advisory role if needed. 

• Director’s husband is elderly, in his 90s, and she wishes to spend more time with him. 

 

 

Next steps

Interested parties are invited to express their interest and request further details. Contact Nick on [email protected] 

Confidential discussions and viewings can be arranged upon qualification. This is a discreet sale, and confidentiality is paramount. We look forward to facilitating a seamless acquisition for both the buyer and the seller. 

 

  

 

** Note the image above is for illustration only.