Selling/exiting a business

[Don19661]

Hello.
Any ideas how to sell a small business?
I have a small shop in a city centre it was established in 1979 so 45 years of trading without a break.Think the time is right to semi retire and leave the business to someone younger.
Any advice would be much appreciated thanks.

 

[Lisa Thomas]

Hello I have some contacts I can connect you with, who would help with this. Firstly, have you had it valued?

 

[Socio South West]

I think you need a word with @KeithGreen of this parish

 

[Don19661]

Hello I have some contacts I can connect you with, who would help with this. Firstly, have you had it valued?

Hi Lisa I have had an online valuation that’s all and know roughly by other shops what it’s worth.That would be great if I can a contact thanks.

 

[Mark T Jones]

+1 for @KeithGreen

It really is a case of its worth what someone will pay.

I can guarantee that the online Valuation is meaningless (most likely designed to lure you into signing with a particular agent)

In terms of retail, key factors are likely to be:

- location
- repeat business/customer magnets.
- fixed assets.
- (poisinly) stock.

Obviously less liabilities.

EDIT: if the aim is semi retirement, it might be an idea to employ someone to earn-in

 

[Don19661]

It’s a barbers shop and it’s been trading for 45 years in a location between 2 universities and lots of passing trade.
The reason I say semi-retirement is I plan just to go mobile without the overheads of a shop.

 

[MikeJ]

Who's going to buy a business when you've spent the previous three months telling your customers what your plans are going to be? Any buyer will expect to lose a good percentage of the trade.

This is one area where a non-compete clause is perfectly valid.

 

[Lisa Thomas]

Hi Lisa I have had an online valuation that’s all and know roughly by other shops what it’s worth.That would be great if I can a contact thanks.

I have sent you a dm.

 

[Mark T Jones]

I'd suggest you speak to someone with some knowledge of that specific trade - not just 'shops'.

Renting it out is one option. My former neighbour had run 3 barber shops, now has (if he's still alive) a decent pension from rents.

 

[Ozzy]

Renting it out is one option. My former neighbour had run 3 barber shops, now has (if he's still alive) a decent pension from rents.

In my experience, well my wife's experience as a past hairdresser, many hair salons (and tattoo studios) rent their chairs out and the salon owner earns a residual income (to semi-retire - and all you have to do then is the marketing and stock, but a studio manager can do that).

If I owned a salon (or a tattoo studio) that is what I'd do anyway.

 

[KeithGreen]

Thank you for the mentions @Socio South West and @Mark T Jones .

I've never been asked to sell or value a barber shop, but have sold a few ladies/unisex hair salons over the years. These of course usually have more value in fixtures and fittings, and a more proveable customer base with the appointment book.

Values are modest, but set against the cost of starting from scratch, you may find a willing buyer. You will need to be open about your plans to go mobile and this may put some people off.

It's not a business I would want to take on but I'm always happy to have a chat and give advice. Please message me if interested.