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Flip Your Salon

October 12, 2011

Few salons are successful from the get-go or remain successful for the lifetime of the business. In most cases a period of hardship and struggle has to be endured in order for the business to find the solid bottom on which to build the foundations for sustained growth.

Instead of selling their businesses, some people are in the business of flipping salons. They take something that has little value and needs a lot of fixing, give it a large cosmetic overhaul and then put it right back on the market before the smell of new paint fades. These turnaround specialists buy low to sell high, often taking over a failed business, its lease and leasehold improvements, slapping a brand name on it, and then turning it around as a loosely held franchise. Supposedly selling you a franchise system, a reputation and a certain buying power with manufacturers, the place is often staffed with employees that were given a signing bonus that they must reimburse if they leave before a certain date. So with shiny new signage, a ‘reputable’ name, a salon full of staff and deep promotions to fill up the books, we have the perfect set-up for a flip… all that is needed is the right fish (usually a business investor from outside the industry or someone who thinks this opportunity provides the least amount of work to get started). Frequently the place is closed within a year and the new owner is left wondering what went wrong.

If your business falls into this category, get informed and get help before it’s too late.

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