Listing ID: 67413
Profitable Thrift and Cigarette Retail Store in great location near large Army base.
Thrift Store Business sells over $200k per year in used furniture, appliances, clothing, electronics, china, dinnerware, and miscellaneous items. Over 60% of the items sold are donated to the store so the cost of goods is exceptionally low.
The Seller also owned a separate cigarette store next door for 20 years but recently consolidated the two stores. The business specializes in seller discount brands with lower retail price but higher profit margins than national brands, The first full year sales were more than enough to cover the store rent and utilities.
The Seller is willing to stay on and help the Buyer go through the approval process.
Transactions are 60% cash and 40% credit card. Owner earns 50% – 100% gross profit on Thrift Store sales and 10% – 30% on Cigarette sales.
Owner is retiring and would prefer an all cash transaction but would be willing to hold a note with minimum of $80,000 down.
- Asking Price: $129,000
- Cash Flow: $75,000
- Gross Revenue: $210,000
- EBITDA: N/A
- FF&E: $5,000
- Inventory: $15,000
- Inventory Included: Yes
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,750
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Shop has been in business at the same location for 14 years. The Seller is retiring after a long successful career, and all employees will stay. THIS IS A HUGE OPPORTUNATY FOR A YOUNG OWNER OPPERATOR TO GROW A VERY PROFFITABLE BUSIHESS!
The Thrift Store side of the business is the only retail location in the town zoned to offer Consignment furniture and appliance sales. Although the store currently doesn't offer consignment service, a special zoning permit is grandfathered in through the city and there can not be a competitor. The cigarette side of the business is the only discount brand retailer in the are and has been for over 10 years.
The the Thrift Store earns this 72-year old Seller between $75,000 to $90,000 per year and has the potential to do much more. The cigarrete sales pay all of the rent now and could do much more with a little promotion.
The venture was founded in 2017, making the business 5 years old.
The transaction shall include inventory valued at $15,000, which is included in the asking price.
The company has 2 employees and is located in a building with estimated square footage of 2,750 sq ft.
The property is leased by the company for $2,832 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell operating businesses. However, the true factor vs the one they say to you might be 2 entirely different things. As an example, they may claim "I have way too many other obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competitors, current reduction in revenues, or a range of various other factors. This is why it is extremely essential that you not count totally on a seller's word, but instead, use the seller's solution together with your total due diligence. This will repaint a much more practical image of the business's existing 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 offer. Numerous operating businesses take out loans with the purpose of covering items such as stock, payroll, accounts payable, etc. Remember that occasionally this can mean that profit margins are too small. 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 tools or the structure where the business resides. The business might have existing agreements with vendors that have to be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new clients? Many times, businesses have repeat customers, which develop the core of their everyday earnings. Certain aspects such as new competitors sprouting up around the area, roadway building and construction, as well as staff turnover can influence repeat clients and also negatively influence future profits. One vital point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the greater the opportunity to build a returning customer base. A final idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? How might the neighborhood typical family income effect future revenue prospects?