What should I ask about a nail salon’s polish and acrylic supplier terms?

Ask for a list of suppliers and what the salon buys from each: polish, gel, acrylic powder and liquid, tools, disposables. Then ask how each account works. Is the salon paying on delivery or on credit, and is any amount owing now? Debts to suppliers are something you should know about before closing.

Ask about special terms. Some suppliers give volume pricing, free product or loaned display stands in return for exclusivity or minimum orders. Those arrangements may not transfer, or they may come with commitments you would inherit. Read any written agreements, and ask your lawyer to review them.

Call the main suppliers, with the seller’s consent, and ask whether they would continue serving the salon under new ownership and on what terms. Ask how late deliveries are handled, and whether alternatives exist if a product is discontinued. Compare supply costs to service revenue, and ask your accountant to look at the margin. If a single supplier supplies nearly everything, consider the risk that goes with it. Ask what happens with returns or product the salon cannot use, and whether the supplier trains staff, since those perks sometimes disappear when the account changes hands. Write down every promise you hear and ask for it in writing.

Key takeaways

• Get a supplier list with what is bought, from whom, and on what credit terms.
• Read any exclusivity, minimum order or loan-of-equipment agreements.
• Call key suppliers to confirm they will serve you as the new owner.