Business Overview

Over 20-year established dry cleaning plant with one pick-up station in the North Dallas area are now available for acquisition. The plant was first established (almost two decades ago) in 1995 by the previous owner and was later acquired in 2018 by the current owner of the business. The pick-up station was acquired by the current owner in 2018 on the same date as the plant. Competition is expected for this industry for each location, but this fully-equipped dry cleaning plant and prime location pick-up station have been well-positioned in immediate market area of both locations and have been successfully operated with consistent revenue generated throughout many years of providing quick & convenient cleaning services with inexpensive price points. Overall demographics of the plant and pickup station are mostly middle to upper-class Caucasian and a well mix of other ethnic groups from nearby neighborhoods, local businesses and offices filled with corporate workers. This dry cleaning plant and pick-up station offers full service dry cleaning and laundry services as well as wash & fold, pressing service, alteration as well as leather cleaning service in which all of the work is done on the premises at the plant. Gross sales of all locations combined have been $800,000/year during the past several years before COVID-19 with sales steadily growing each year through quality control and management. Proactive marketing is crucial for the continued growth of this business as there is no marketing done by the current owners. Although there are many ways to proactively market these dry cleaners, online-based marketing such as social media outlets, email marketing, web-based advertisements, and online app services offered to customers will bring new set of customers and contribute to continued success the business. Tapping into wholesale dry cleaning market as well as home pick-up and delivery services can be also additional opportunities available for new owner. Full-time owner involvement will be crucial to the growth for this business as managing the flow of the business will allow quality service and retention of customers that will ultimately cut down unnecessary payroll expenses. Upgrading the current POS system will also help the business’s operation flow much better, allowing this business to enhance customer’s service and handling many orders at once. These prime locations dry cleaning plant & pick-up station is now ready for a potential buyer to be proactively marketing this business while being fully involved in the day-to-day operations.

Listing ID #000856
For more info, please call Stephen Lee at 1-866-519-2421.

Financial

  • Asking Price: $225,000
  • Cash Flow: $210,000
  • Gross Revenue: $811,406
  • EBITDA: N/A
  • FF&E: $120,000
  • Inventory: $4,000
  • Inventory Included: Yes
  • Established: 1995

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Each location of the locations is located in prime spots within retail strip centers where visibility as well as functionality keeps the business ahead of the competition. The plant and pick-up station features a convenient drive thru. All equipment is well-maintained and there is some brand new equipment in all location.

Is Support & Training Included:

Owner will provide a sufficient training for an agreed upon period to make the transition into the business as seamless as possible.

Purpose For Selling:

Other opportunities/Burnt out

Pros and Cons:

Few competitors were found in the immediate market area, but the market share has already been established and each location has competitive price.

Opportunities and Growth:

Pro-active marketing is needed to grow the sales to full potential since there's no marketing currently done except thru word of mouth.

Additional Info

The company was started in 1995, making the business 27 years old.
The transaction will include inventory valued at $4,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell companies. Nonetheless, the genuine factor and the one they tell you might be 2 totally different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competition, recent decrease in incomes, or a variety of various other reasons. This is why it is extremely important that you not depend entirely on a vendor's word, but rather, use the vendor's answer together with your overall due diligence. This will paint a more reasonable picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that profit margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract new customers? Many times, operating businesses have repeat customers, which create the core of their daily profits. Specific variables such as new competition sprouting up around the area, roadway building and construction, as well as staff turnover can affect repeat consumers and adversely influence future earnings. One important point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the greater the chance to construct a returning client base. A final thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? Exactly how might the neighborhood average family income impact future income potential?