Business Overview

An exciting opportunity to own a growing profitable wind watersports retail business in the epicenter of windsurfing, kitesurfing and wing-foiling community. Sales have increased 300% since 2008, including 37% – 2019-2020, and 31% 2020-2021 by staying on top of the latest windsports trends. 7,000 sq ft retail store with 50% E-commerce business model. $600,000 of inventory included in this listed price.

The owner is seeking to sell the business to retire and is interested in ensuring a smooth transition to the new buyer.
The shop opened in 1984 during the early days of windsurfing. Current owner purchased in 2008 and saw the opportunity to grow the business by expanding into other product lines such as kiteboarding and wing-foiling. A brand-new website and E-Commerce solution was added to extend customer reach, now contributing 50% of sales and growing. A used equipment consignment program was also re-vamped and contributes to 25% of sales.
This shop is in the top five stores nationwide in its industry. One strong competitor is local, other shops are online based on the east coast. This is both a walk in retail and online shop selling several quality equipment brands plus accessories and roof racks
Growth opportunities through increased E-commerce sales and additional marketing to raise online profile further

Financial

  • Asking Price: $2,800,000
  • Cash Flow: $628,583
  • Gross Revenue: $3,188,505
  • EBITDA: N/A
  • FF&E: $37,000
  • Inventory: $600,000
  • Inventory Included: Yes
  • Established: 1984

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:7,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retiring

Additional Info

The venture was started in 1984, making the business 38 years old.
The transaction shall include inventory valued at $600,000, which is included in the suggested price.

The company has 3 employees and is located in a building with approx. square footage of 7,000 sq ft.
The property is leased by the business for $8,400 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell operating businesses. However, the genuine factor and the one they say to you may be 2 totally different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or a variety of various other reasons. This is why it is really vital that you not depend absolutely on a seller's word, however instead, use the seller's answer along with your total due diligence. This will paint a much more realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that earnings margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in new customers? Often times, businesses have repeat consumers, which form the core of their daily revenues. Particular elements such as new competitors sprouting up around the location, road building, as well as personnel turnover can influence repeat customers and also adversely influence future incomes. One crucial thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business on a regular basis, the greater the possibility to build a returning client base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? How might the regional mean family earnings influence future earnings prospects?