Business Overview

Pre-approved for an SBA loan, this is a long-established and profitable mattress manufacturing and retail furniture business that focuses on eco-friendly materials and traditional manufacturing techniques. The factory has 2 Hunter 2020 garneting machines capable of garneting approximately 500 lbs of cotton, wool or recycled plastic pop bottle fiber a day. Customers seeking high-quality, eco-friendly bedding and furniture are drawn to their well-located and attractive retail shop which is supplied by the factory in Portland where they handcraft natural futons, mattresses and bedding out of sustainable materials including natural and organic cotton, natural wool and organic latex. The store also retails high quality, locally-made wood furniture. With the country experiencing a shortage of mattresses, this business is prime for growth.

Corner Space with high traffic

When the founder was young and creative her grandmother taught her to sew and she started making her own mattresses. She began selling them at farmer’s markets and would transport them there on public transit as she was/is ecologically minded. When she was 19 she bought a house on Burnside with a storefront which would be the first retail store for 15 years. The next location was at NE Broadway and NE 20th which housed the business for 10 years. When that building sold, the business moved to its current location at NE 7th and NE Broadway where sales tripled because of the great location. Around the time of this move, the Manufacturing piece was established in NW Portland with machinery that the owner had moved from Seattle and installed in an ideal warehouse location when it remains today.
There is little competition in the Portland area for retail sales and no competition on the manufacturing side for hundreds of miles.
Expand wholesale in Portland and on internet. Improve and monetize the websites. Expand the business into another niche market such as wool insulation. Increase prices which have not been raised for 2 years. Create and implement a consistent marketing strategy to bring in new customers.

Financial

  • Asking Price: $475,000
  • Cash Flow: $141,675
  • Gross Revenue: $1,064,233
  • EBITDA: N/A
  • FF&E: $149,795
  • Inventory: $70,000
  • Inventory Included: Yes
  • Established: 1981

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:8,000
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other interests

Additional Info

The company was established in 1981, making the business 41 years old.
The deal will include inventory valued at $70,000, which is included in the requested price.

The company has 12 employees and is situated in a building with estimated square footage of 8,000 sq ft.
The building is leased by the company for $5,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell businesses. However, the real factor and the one they tell you might be 2 totally different things. As an example, they might claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or an array of various other reasons. This is why it is really essential that you not count absolutely on a seller's word, but rather, make use of the vendor's answer together with your total due diligence. This will repaint a more reasonable image of the business's existing scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too tight. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be met or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in brand-new clients? Many times, companies have repeat consumers, which form the core of their everyday earnings. Particular variables such as brand-new competition sprouting up around the area, road building and construction, as well as employee turn over can affect repeat clients as well as adversely impact future incomes. One essential thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the better the chance to construct a returning client base. A last thought is the general location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical house earnings influence future income prospects?