Listing ID: 67653
Specialty bakery for sale in the heart of Alexandria. This bakery is located on a very busy road surrounded by residential and retail businesses. The current owner is looking to retire and we are looking for a new owner/operator ready to expand this current business by adding a new menu with more options than the current menu. Seating inside and outside. Bring your concept to this turn key location.
Term: 5 years with option
- Asking Price: $89,000
- Cash Flow: N/A
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 2019, making the business 3 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. However, the true reason and the one they tell you might be 2 completely different things. As an example, they might say "I have too many other obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competition, recent decrease in incomes, or a range of various other reasons. This is why it is really important that you not count entirely on a vendor's word, but instead, utilize the seller's solution in conjunction with your total due diligence. This will repaint an extra realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans in order to cover points like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that earnings margins are too tight. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in new customers? Often times, businesses have repeat consumers, which develop the core of their daily revenues. Specific aspects such as new competitors growing up around the location, road construction, and employee turn over can affect repeat clients and adversely impact future incomes. One vital thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the possibility to build a returning customer base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood median family earnings influence future revenue potential?