Jenna Morrison was the first employee for the full body waxing salon, Waxed, when the business opened three years ago. She was also the first person to make an offer to purchase the business when her employer, Lindsay, planned to put Waxed up for sale. Jenna, an esthetician, was a skilled and knowledgeable employee who understood all the services Waxed provided and knew the clientele. Lindsay fancied the idea of passing the ownerships reigns to Jenna. The transition could be seamless, with a win-win scenario for Lindsay, Jenna and the clients. What Jenna needed to be the new owner was a financial loan.
Jenna had never owned a business before and was unsure as to how banks would respond to her request. Jenna went to several banks. Each meeting was met with discouragement from the bankers. Their collective message was that Jenna should forgo the idea of becoming a new business owner. Jenna then went to Region 9, part of the La Plata County Economic Development Alliance, which helps foster economic success within the community. Region 9 directed her to the Small Business Development Center (SBDC) in Durango. Jenna met with Carl Malmberg and they discussed her situation. She found Carl to be very supportive. He provided a wealth of knowledge, experience, and materials to assist Jenna with business operations, determining a purchase price for Waxed, and tips to secure a loan. Jenna and Carl reviewed Waxed’s profit and loss statements, tax returns, and discussed how to approach the business plan.
The plan needed specific information for financers to understand how Waxed would be profitable. Carl suggested Jenna perform research comparing Waxed to similar businesses, such as hair and nail salons, highlighting what salons gross yearly and what they have sold for. Carl also supplied spreadsheet software for future profit forecasting and mock business plans from spas and salons as a guideline for Jenna’s plan.
Each day after work Jenna spent her time compiling the data, meeting with her accountant and writing out the business plan. Her research indicated Waxed had the potential to grow and hire more employees. When the plan was complete, Jenna had all the hard numbers figured out. She was well prepared for her next meeting with region 9.
Jenna said what was most important to Region 9 was for them to see how Waxed could create new jobs. Region 9 also learned how a waxing salon made profits and how the business is priced. In the end, she achieved her objective. Jenna secured the loan and left feeling encouraged as a new business owner.
Two months after Jenna offered to buy Waxed from Lindsay, the deal was finalized. Jenna became the new owner of the only waxing salon in the Four Corners area. Since then business has been successful on several important fronts. With Jenna at the helm, all employees were moved up from part time work to full time. Jenna also hired three new employees and added a new salon service called lash lifting. Waxed has been bustling with clients, averaging thirty new customers a month. This sparked a new long term goal, which is to find a larger location and hire more estheticians.
“Becoming a new business owner has been challenging and a learning experience,” Jenna stated. “SBDC guided me in the right direction and showed me owning a business was possible.” Jenna is grateful to Carl. “He gave me a lot of time reviewing plenty of paper work.” Jenna has been referring her clients to SBDC when they speak of starting a business. The future is clear and bright for Waxed.
