How to buy a barber shop ?
There is a strong demand for personal grooming services in the UK and it has proved to be profitable venture for many people. However, it is certainly not easy. In this article, we will provide you the information you need to buy a barber shop.
Essential skill you will need
To make your business successful, you will need the following:
- Formal barber training – Although you do not need any formal qualification in order to buy a barber shop, it will benefit you hugely.
- People person – you will need to be welcoming and with good communication skills.
- Business minded – running as business requires you to be business minded.
- You will have to spent a lot of time in the shop, particularly in the start to ensure that your service is up to mark.
- Management skills – you will be employing staff and will have to manage them. You will have to keep them motivated and manage them efficiently.
Location of the shop
When looking for a barber shop to buy you should think about where you want your business to be located.
- Retail area – though your cost for this location might be on the higher side than average. However, such cost can be easily offset with the extra revenue you can potentially create due to visibility and footfall.
- Shopping mall – a barber shop in a shopping mall can be expensive. You may also be subject to stricter regulations and guidelines for operation and advertising.
Regardless of which area you choose, you should take a walk around and check out the competitors. This will allow you to know what kinds of services are being offered in the area, allowing you to offer a service to set you apart.
Important things to keep in mind
In the recent years, male grooming has gained popularity. Aside from that, there have been barber shops opening up which are designed to appeal to older men, others to school kids, to name a few. You should think about your target customers.
Once you have come across a barber shop you are interested in purchasing, you should also find out which equipment, fixtures and fittings will be included in the sale. Remember to put it all in writing. You need a solid contract with sufficient warranties from the owner regarding the business you will be taking over.
The process of due diligence is one that provides a thorough investigation into a proposed investment transaction. It means you check the investment worthiness, and assess the full claims made by the owner. This check is usually performed by a solicitor and accountant who act on behalf of the buyer. A large portion of due diligence will involve checking financial statements and accounts.
If you buy wisely and do thorough research of the background and potential of the business which attracts your interest, you will get immediate access to the existing base of customers and suppliers. This make ensure that you know what you are getting into.
Click here to find more about due diligence.
You need a solid contract
You, as the buyer, will have to produce the sale document. This agreement will have to cover the mechanics of the deal – what is being sold, where it is, how it is to be transferred, and so on. This is where warranties come in. Click here to download a business sale agreement if you are purchasing a baber shop.
Warranties which are legally binding promise as facts about the business, which provide information relating to the business. Click here to know about how warranties work and why they are important.
Other documents you need
Additionally, you may need assignment and novation agreements to transfer contracts the seller is a party to.
If company shares are being sold, then you will need directors service agreements, board minutes to document approvals to changes, and possibly, a new shareholders agreement and new articles of association.
We can help you find exactly what you need for your circumstances if you contact us and ask.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
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