8 Questions to Ask When Buying a Hair Salon

Are you in the market to buy an existing hair salon? If so, you’re probably wondering  how exactly you can purchase a salon that’s already operating. While buying an existing salon could come with many benefits, like an established reputation, list of services, reputable stylists and a proven business model, there are also a lot of considerations to take and obstacles of which to be aware.

If you’re ready to make the purchase of an existing salon, you have come to the right place. This blog post will carefully uncover the kinds of things you will need to keep top of mind when you embark on purchasing a salon that’s already doing business and has hair salon supplies stocked. We will also provide information on other important aspects, like finding a salon for purchase and learning how to manage clients and stylists who come with the salon.

Pros and Cons of Purchasing an Existing Salon

As you begin looking for salons to purchase, here are some pros and cons that can help drive your decision and uncover potential questions to ask sellers. 

The Pros

Existing salons come with many pros for salon owners who are looking to jump right into the business. Some of them are: 

• Established client list and returning customers 
• Talent and stylists who know the business and have experience
• An existing salon, complete with equipment, decor, tools and professional hair color
• An established brand and reputation

The Cons

While the pros list above may sound appealing to most business people, the pros can also be the cons when purchasing a salon. Here are some of the ways these pros may turn into negatives down the line. 

• Salon staff can be hesitant to work for new management 
• There might be high turnover 
• Potential loss of clientele due to any disruptions 
• You inherit the reputation the salon has, even if it is a weak one 
• The salon may need repairs or large investments
• The business could have been run poorly beforehand

Questions to Ask When Buying a Hair Salon

Now that you know there are both pros and cons to buying an existing salon, let’s talk about the kinds of questions you should be asking to determine whether this is the right move for you.

1. What is your salon’s revenue for the past five years, one year and six months? – It’s important to get an idea of how much money the salon is bringing in. Not only that, but you want to see how the revenue has changed over time. 
2. Are there any financial debts or information that I should know about? – You will need to get the entire financial picture of the salon, including any outstanding debts. 
3. What’s working for the salon and what isn’t? – Salon owners should be able to tell you what is working for their business and what could use some improvement. Asking this question will provide you insight on areas of the business you may need to step in and improve upon buying. 
4. What is the condition of the equipment that will come with the salon and which equipment will come with the purchase? – It’s critical to know whether or not you will be keeping equipment when you purchase the salon, as well as the state in which it is in. This can help you gauge how big of an investment you may need to make in salon equipment. 
5. What is employee retention and turnover like? – Does this salon see employees leaving and new employees coming in too often? It’s beneficial to understand how a salon treats its people. 
6. Is this neighborhood or location conducive to business? – Understanding the salon’s location and the neighborhood are critical in determining whether or not the salon is located in a spot that’s easy to access. This could either help or deter business. 
7. Who is the salon’s target clientele? – Another critical factor to consider is whether or not the salon’s existing clientele is one you want to serve. Understanding the clientele will allow you to see how you can cater to them if you choose to buy the salon. 
8. What is the salon’s stance on digital marketing? – Does the salon have social media accounts and a website? What condition are they in? These are important tools needed to market the business. 

Do you feel more comfortable about entering into the salon buying journey? You now have all the questions you need to find the answers that will determine which salon is the best fit for you.