Listing ID: 66591
Located in Central Washington State. This Company has been making delicious treats for their customers since 2003! They invite their customers to come in to try their espresso, donuts, bagels, and more. When customers visit the bakery they discover why the Company has repeat customers from Seattle, Portland, and Spokane, as well as all of the communities around their location. The Company also offers their baked goods on a wholesale basis and provides delivery 7 days a week.
- Asking Price: $184,000
- Cash Flow: $65,514
- Gross Revenue: $351,579
- EBITDA: N/A
- FF&E: $100,494
- Inventory: $19,112
- Inventory Included: Yes
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The Company leases 2,650 sq. ft. in a building located in a high traffic area of the communities they serve. The lease is $2,100 per month for a total of $25,200 on an annual basis. The current lease expires March 1, 2024 and has renewal options through 2035.
Will train for 2 weeks @ $0 cost. Licenses & Permits: Washington State Business License, Business License for the City in which the Company is located, Health Department Permit and each employee must have a Food Handlers' Registration Card.
There are two small competitors and 1 large competitor within a 3 mile radius of the Company's location.
1. Increase wholesale by selling to more espresso stands. 2. Increase sales to current wholesale customers by cross-selling. 3. Market to Hispanic walk-in customers by developing traditional Hispanic foods to sell. 4. Market to existing walk-in customers through e-mail, SMS, and other social media tactics. 5. Develop new products for walk-in and wholesale clients such as breakfast burritos. 6. Market sandwiches more heavily. 7. Develop variations on current products, such as powdered sugar donut holes and/or sticky buns.
The company was founded in 2003, making the business 19 years old.
The sale does include inventory valued at $19,112, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nevertheless, the real reason and the one they tell you may be 2 absolutely different things. As an example, they may claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competitors, recent decrease in profits, or a variety of other reasons. This is why it is extremely essential that you not rely entirely on a vendor's word, however instead, use the vendor's solution in conjunction with your overall due diligence. This will paint a much more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover items like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that profit margins are too thin. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new clients? Most times, companies have repeat customers, which develop the core of their daily profits. Certain factors such as new competition growing up around the location, roadway building, and staff turnover can impact repeat consumers and also adversely influence future profits. One crucial thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the higher the chance to develop a returning consumer base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean house income influence future income potential?