Business Overview

Operating 17 years, this location has established a formidable following in a primary city in Hampton Roads, Virginia. In addition to providing a Dry Cleaning Service the facility is well known for their ability to perform alterations in time for major life events like high school proms, homecomings, graduations, and weddings. The business is fully equipped with all of the fixtures necessary to accomplish the task at hand including updated computers and software. Included are 4 commercial sewing machines, specific operating areas, and dressing rooms. Improvements and updates were made in 2019 to the tune of $50,000 and are included in the purchased assets. Included as well are all of the organizational racks to handle dry cleaning workflow. A strong and established client base is returning, and while the pandemic had the business closed for a period of time in 2020 the performance of the business in 2019 was spectacular and 2021 appears to be outperforming 2019, as customers are catching up for lost time as a result of COVID-19. The current staff in place takes care of all of the alterations, but a Buyer candidate will need some level of alteration and sewing experience in order to comfortably take over the operation. That said, the current owner will provide ample training and introductions to the current customer base and clients. And will also participate in a transition long enough to insure the Buyer is comfortable in taking the business on their own.

Financial

  • Asking Price: $85,000
  • Cash Flow: $20,982
  • Gross Revenue: $559,583
  • EBITDA: N/A
  • FF&E: $55,117
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2005

Detailed Information

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

The business operates in 1,200 square feet and is located in on a major thoroughfare in an attractive strip mall. The monthly lease is $2,300 including cam charges.

Is Support & Training Included:

Will train for 3 weeks @ $0 cost. Dry Cleaning Service with Alterations. A Buyer candidate will need to have sewing and alteration experience.

Purpose For Selling:

Retirement.

Opportunities and Growth:

Update web presence along with enhancing social media.

Additional Info

The business was established in 2005, making the business 17 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why people choose to sell businesses. Nevertheless, the real factor vs the one they say to you might be 2 absolutely different things. For instance, they may say "I have way too many other obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these may simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or a range of other reasons. This is why it is really vital that you not rely entirely on a vendor's word, but instead, make use of the seller's answer combined with your general due diligence. This will paint a much more practical image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that profit margins are too tight. Numerous businesses 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 think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area bring in new consumers? Many times, businesses have repeat consumers, which develop the core of their daily profits. Particular variables such as brand-new competition sprouting up around the area, roadway construction, as well as staff turn over can affect repeat consumers and negatively influence future earnings. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning consumer base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the neighborhood typical family income influence future income prospects?