Listing ID: 64385
SBA available & Great Location, Growing Growing !!!
Gross Revenue 2019 – $519,526
Gross Revenue 2018 – $496,905
Easily Owner Operated
- Asking Price: $350,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. However, the real reason and the one they tell you may be 2 absolutely different things. As an example, they may state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is extremely essential that you not count completely on a seller's word, yet instead, make use of the vendor's answer along with your total due diligence. This will repaint a much more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that profit margins are too small. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that must be met or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new customers? Often times, companies have repeat customers, which develop the core of their daily revenues. Particular aspects such as new competition sprouting up around the location, roadway construction, and also personnel turnover can influence repeat customers as well as adversely affect future earnings. One important point to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the greater the opportunity to build a returning client base. A final idea is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the regional typical house income impact future revenue potential?