Listing ID: 66914
This is a year-round business in a high growth industry.
They offer a variety of products and services for increased revenue creating a wide customer base. You will be able to operate on regular business hours, giving you evenings and weekends free. Few employees to serve your predominantly commercial clientele.
This creative business offers high revenues.
- Asking Price: $240,000
- Cash Flow: $152,000
- Gross Revenue: $762,000
- EBITDA: $152,000
- FF&E: $75,000
- Inventory: $2,400
- Inventory Included: N/A
- Established: 1986
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,400
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
20 days of training.
The venture was started in 1986, making the business 36 years old.
The transaction doesn't include inventory valued at $2,400*, which ins't included in the requested price.
The company has 3 employees and is located in a building with approx. square footage of 1,400 sq ft.
The property is leased by the business for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell operating businesses. Nevertheless, the real reason and the one they say to you may be 2 absolutely different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in revenues, or a range of various other reasons. This is why it is extremely vital that you not depend completely on a seller's word, but rather, utilize the vendor's solution in conjunction with your overall due diligence. This will repaint an extra realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering items like stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that earnings margins are too tight. Numerous organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new clients? Most times, businesses have repeat consumers, which form the core of their everyday revenues. Certain aspects such as brand-new competition growing up around the area, roadway construction, and also staff turn over can impact repeat customers and negatively influence future earnings. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business often, the higher the chance to build a returning client base. A last idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood mean household earnings impact future income potential?