Business Overview

Well established (over 35 years) upholstery and foam shop. No Experience needed. All work is sub-contracted. Customers come in and pick their fabric and out the door it goes. Seller keeps 40% and pays the contractor 60%, also makes profit on the fabric and the foam.

Financial

  • Asking Price: $230,000
  • Cash Flow: $85,266
  • Gross Revenue: $399,108
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1982

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,000
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Busy corner location with a very fair lease rent. Beautiful show room with fabric displays.

Is Support & Training Included:

seller will train

Purpose For Selling:

retirement

Pros and Cons:

little to no competition.

Opportunities and Growth:

Just added foam which has been a great seller. Could easily add interior design, draperies, alterations, auto mobiles, boats, RV's. The sky is the limit

Additional Info

The business was started in 1982, making the business 40 years old.

The company has 0 employees and resides in a building with disclosed square footage of 2,000 sq ft.
The property is leased by the company for $1,200 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell operating businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 completely different things. For instance, they may say "I have too many various obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of various other reasons. This is why it is very vital that you not rely completely on a vendor's word, yet rather, make use of the vendor's solution combined with your general due diligence. This will repaint a more sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering points like supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that revenue margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in new clients? Most times, businesses have repeat clients, which form the core of their everyday revenues. Certain factors such as new competition sprouting up around the location, roadway building and construction, and also personnel turnover can influence repeat consumers and also negatively impact future revenues. One crucial point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business often, the higher the possibility to develop a returning consumer base. A last idea is the general area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the local typical house income influence future earnings potential?