Bridal boutiques, also known as bridal shops, are a particular popular business among women, as most of them want to get married one day.
We are talking about a niche market, of course, but weddings happen every month. However, according to National Center for Family and Marriage Center (NCFMR), from Bowling Green State University, weddings rate in the United States is at 31,01 from 100. One hundred years ago, this same rate was 92,3.
Despite the decrease, it’s still possible to say that a bridal boutique is a solid industry to invest, so you’ll probably get a good deal if you decide to sell your business right now.
What is your Bridal Boutique worth?
But before you set your asking price you have to find out what your bridal shop is worth. In order to do that, gather all finance data from the past three to five years and compile it into a report.
Than, include in this same report all details related to competition. Focus on what other bridal boutiques harm your profits and what you have done in the past years to avoid it
Take a look at these metrics and make sure you have all the answers:
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Bridal business worth more?
Now that you started analyzing and answering the last questions focused on how your business is valued, you can begin planning on how to make it being worth more with these next metrics:
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
If you have done any investments in the store, if you have increased the number of employees, you have opened more shops, if you are present in the internet and so on, make sure you take it all into account before setting your asking price.
What does the average Bridal business sell for?
Since 2005, there has been 63 bridal shops sales in the United States, with an average sales price at $221k and average multiple at 2.52, which means bridal boutique owners usually get two times more money than they have in their gross incomes.
What is the most frequent deal size?
Most frequent deal size is $150k, a little bit less than average sales price. There’s very few bridal boutique sales in the past ten years, that’s the most likely deal you’ll get from your business sale.
Is the Bridal Boutique market getting bigger?
It’s difficult to say that bridal boutique market is getting bigger or smaller because there haven’t been a lot of sales in the past years. Of course one year will be different from the others, but 2013 and 2014 were great for this particular industry compared to other years.
Are bigger businesses worth more?
Not always. In 2015, for example, there are only less than $250k sales.
In 2014, on the other hand, business owners profit more from $250-500k sales than for any other one, with a multiple rate of 4.84. Bridal shops sold for more than $500k and less than $1 million had a multiple of 2.06.
What states have the most Bridal business deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in California, Connecticut or Georgia, you may get a lot more offers than if you are in New Mexico or Minnesota. But sometimes you can overcome the low number of deals with investors or competitors looking to enter a specific new area, and get lucky with an offer.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your Bridal business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your Bridal business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Bridal Boutique, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the bridal industry it may likely be a person who already had a store in the field.
There has been only 63 bridal shops in the past ten years, and average multiple is at 2.52. Although is not possible to say that bridal boutique market is getting better or not, it’s probably a good time for you to sell your business.
If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today! Leave your comments on any doubts or feedback, we are glad to hear your thoughts!