Listing ID: 66822

Business Overview

Business $300k & Building $575k

Owner has set up this turn-key business to be taken over by new owner with great growth potential and smooth transition. Excellent reputation in town with 4.8 on Google Reviews.

This opportunity has great cash-flow, well established clientele in a location that comes with a building and tools. Or lease the building from the owner with option to buy.

Financial

  • Asking Price: $299,000
  • Cash Flow: $110,391
  • Gross Revenue: $456,633
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $30,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:7,500
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retiring

Additional Info

The sale does include inventory valued at $30,000, which is included in the asking price.

The business has 1 employees and is situated in a building with approx. square footage of 7,500 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell companies. Nonetheless, the true reason and the one they tell you might be 2 absolutely different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a variety of various other factors. This is why it is extremely essential that you not count entirely on a seller's word, yet instead, utilize the seller's response combined with your overall due diligence. This will repaint a much more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Many companies finance loans so as to cover items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too thin. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be met or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new clients? Many times, operating businesses have repeat consumers, which create the core of their daily earnings. Particular elements such as brand-new competition sprouting up around the area, road building and construction, and personnel turn over can influence repeat consumers and negatively impact future incomes. One crucial thing to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the higher the chance to develop a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Exactly how might the regional median home earnings influence future revenue potential?