Business Overview

Long-time, local favorite dry cleaning business. Owners are ready to retire. COVID pandemic affected the business, but 2021 numbers are improving every day.

Financial

  • Asking Price: $125,000
  • Cash Flow: N/A
  • Gross Revenue: $200,000
  • EBITDA: N/A
  • FF&E: $130,000
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 2005

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,500
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Located in a busy strip mall anchored by restaurants and QFC in an upscale Eastside neighborhood.

Is Support & Training Included:

As needed and agreed upon.

Purpose For Selling:

Retirement

Pros and Cons:

No other dry cleaner in the city limits.

Additional Info

The business was founded in 2005, making the business 17 years old.
The transaction shall include inventory valued at $2,000, which is included in the listing price.

The business has 2 employees and is located in a building with estimated square footage of 1,500 sq ft.
The property is leased by the business for $6,291 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. However, the real factor vs the one they tell you might be 2 entirely different things. As an example, they may say "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might just be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of other reasons. This is why it is very vital that you not depend absolutely on a seller's word, but rather, utilize the vendor's response along with your total due diligence. This will paint a much more practical image of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans in order to cover things like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too tight. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location attract new clients? Many times, businesses have repeat consumers, which develop the core of their everyday profits. Particular variables such as brand-new competition growing up around the location, road construction, and also staff turnover can impact repeat customers and negatively impact future profits. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the better the chance to develop a returning customer base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? How might the local median house income impact future revenue prospects?