Listing ID: 66744
Prime location with high traffic visibility located right off North Highway 99. Beautiful, clean space with type I hood; less than four years on the build-out. Great for delivery, take-out, pick-up and dine in. Currently family operated with three staff members. Busy lunch business due to location. Seller will train.
- Asking Price: $300,000
- Cash Flow: N/A
- Gross Revenue: $884,900
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:725
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Seller training upon closing of sale
The business was founded in 2019, making the business 3 years old.
The company has 3 employees and resides in a building with disclosed square footage of 725 sq ft.
The property is leased by the company for $1,329 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nevertheless, the true factor vs the one they say to you might be 2 entirely different things. As an example, they may say "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competition, current decrease in profits, or an array of various other reasons. This is why it is very important that you not count entirely on a seller's word, however rather, utilize the vendor's response in conjunction with your total due diligence. This will repaint an extra reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering points such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can mean that revenue margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new clients? Most times, businesses have repeat consumers, which form the core of their day-to-day profits. Specific aspects such as brand-new competition sprouting up around the location, roadway building, as well as personnel turn over can influence repeat consumers and negatively impact future profits. One important point to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business regularly, the greater the chance to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Exactly how might the local average home income effect future earnings prospects?