Amazing opportunity to own a 2-tier business with loads of potential for the right investor. Operation has been in business for 7 years and shown growth each year as well as won numerous local awards for various categories. The barber shop and clothing/accessories account for a near 50/50 split in revenue generated. On average men tend to enter or look for clothing 2 to 3 times a year however in our unique situation we see a large portion of our clients 12 to 16 times a year for haircuts giving them enhanced exposure to the other products we carry when they visit.
The business is located in a recently rejuvenate Belleville downtown that continues to show an uptick in traffic each year. The well-appointed retail space has approximately 2000 square feet and carries a Victorian/steampunk vibe that appeals to a large cliental group. A recently added and separately owned/operated café/cocktail lounge with walk through not only will add to future business but it will enhance the atmosphere and overall offering of it as well. Cross promotions between the 2 businesses will likely become a norm and generate even more excitement and business for both establishments.
The most intriguing thing about this venture and opportunity is the untaped and easy growth potential. The owner operator has spent roughly 2 years concentrating on his next venture and life goals which unfortunately left these opportunities untaped but fortunately ready for the next proprietor. Some of these growth potentials that could reach 175k to 250k within a year’s time will be explain in further details in this summary. Other details will be saved for interested parties in our Valuation and business summary.
Property Information
Real Estate: Lease – 3yrs remaining
- Details - Store Size: [2000 APPROX]
- Layout: The store is strategically laid out to maximize traffic flow, sales, product visibility, with loss prevention in mind. Aesthetically the store offers a pleasing Victorian/steampunk feel that is intriguing and interests a broad demographic that is our cliental.
- Neighboring business is a Café and Cocktail lounge has a walk through to Park Provisioners which can be locked at any point but advised keeping open as it adds to overall business and presents several opportunities for cross promotion.
Operations
Management and staff:
Owned and operated + 3 staff members
Business Growth Potential:
Highlight points for quick 250k revenue growth (1 to 1.5 years).
- Price increase and added service options. Price increases have not occurred in nearly 2 years. An avg. increase of $3 would produce roughly $15,000 to $18,000 additional yearly income.
- Increasing our 3rd barber from 3 days to 4 days would approximately add 500 hair cuts a year. This likely would take 2 months of promos and direct marketing to drive in loyal returning clients. 500 x $38 (avg. haircut) = $19,000
- Adding an additional full-time barber would significantly increase the stores revenue as well. This can take roughly 8 to 10 months to reach its full potential however many factors could reduce this significantly. Direct revenue from this should be roughly $95,000
- The addition of a barber not only increases revenue on the barber side of things, but it also organically has effect on the overall sales on the retail front as well. By taking such steps, you will have added roughly 220 new clients that show up to the store 12 to 16 times a year in comparison to 2 to 3 times. This typically has shown to provide roughly a 25% to 30% increase in retail depending on the clients.
Based on last years sale this would be roughly an additional $55 000 in retail sales
- We are open 5 days a week opening an additional day would average out to the following $1500X52 = $78,000
- Further discussions with interested parties can showcase a number of other opportunities including expansion and adding locations.
Risks & Challenges
Although Park Provisioners has carved a niche for itself in the community and seen several competitors close in the surrounding areas “which we have likely benefited from” this may have left a void where new competitors may see the area as an opportunity. This potentially could lead to an influx of competitor opening in the region at some point or it may not. It would be wise in the future to use one of the various loyalty or point systems starting to emerge or utilize a points and referral program with other retailers. In relation to our existing competitors and potential new competitors we have strategically work with what we consider the right supplier mix that is adequately distributed within the region or that have Strick territory rights. We also have several suppliers that we rotationally use every few years that could fill the void in place of another supplier but also are used as high value attraction brands.
Sale price $299,000 Plus inventory $165,000 approx
