Listing ID: 67751
It is no secret we all love donuts! When you take a great location with reasonable rent, good quality donuts, breakfast sandwiches, and an extremely popular line of “fun” cold drinks and put them together what you get is a great business opportunity.
The current owners are retiring and have made the opportunity to own their business a reality. This is an ideal situation for a family to own and operate a relatively simple business with everything in place to realize cash flow from the first day.
This business will easily repay your investment in a short time; after that, the profit is all yours to keep and grow.
- Asking Price: $230,000
- Cash Flow: N/A
- Gross Revenue: $356,844
- EBITDA: $165,055
- FF&E: N/A
- Inventory: $2,000
- Inventory Included: N/A
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,260
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
1,260 square feet of leasable area not including sidewalk tables for short term outdoor dining. The drive up order and takeout window is a real advantage. Interior is well maintained and the product is attractively displayed. Extensive furniture, fixtures, and equipment will convey with the transfer of ownership.
Sellers will train up to two weeks at no charge. Well defined policies and procedures, a limited number of suppliers required, and diverse menu will benefit new owners.
There is a normal level of competition in the market. This donut shop is located close to an abundance of population that enjoy good donuts and coffees. The revenue trend line is strongly positive; evidence of the strength of the business.
Currently the business closes at 6 pm each day. Extending open hours. The option does exist to also open on Sundays, which Daylight Donuts is currently not. Sundays closed has proven to be beneficial for the owners and employees for rest and relaxation.
The company was started in 2013, making the business 9 years old.
The deal won't include inventory valued at $2,000*, which ins't included in the asking price.
The company has 3 employees and is located in a building with approx. square footage of 1,260 sq ft.
The property is leased by the company for $2,030 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell companies. Nevertheless, the real reason and the one they say to you may be 2 absolutely different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or a range of other reasons. This is why it is extremely important that you not rely entirely on a seller's word, however instead, use the seller's solution together with your overall due diligence. This will repaint a much more sensible picture of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover points like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that profit margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with 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 contracts with vendors that have to be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new customers? Most times, businesses have repeat consumers, which develop the core of their daily earnings. Specific elements such as brand-new competitors sprouting up around the location, roadway building, as well as employee turnover can impact repeat customers and negatively influence future profits. One important thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning client base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood median household income effect future revenue prospects?