Business Overview

Prime location large coin laundry with check cashing/money transfer in Dallas is available for acquisition. This business was originally established in 2007 over a decade ago and was later acquired by the current owner in 2020. Most of the customers are middle-class Hispanics that live in the surrounding densely populated residential neighborhoods and many blue-collar individuals that work around the area. Competition is expected for this business industry, but this business has a relatively large facility and very well maintained equipment compared to other competitors. Gross Income for the coin laundry business has been in the range of $180-200K and net commission income from the check-cashing and money transfer business have been around $80-90K per year, both of which have been consistently growing over the last few years until the Covid-19 breakout in March 2020. Retail soap sales, vending machines, various game machines, and other income bring an additional net income of $85-90K a year. Although this is a coin laundry business, proactive marketing tactics need to be in place for this business to fully utilize the operation to generate maximum income capacity while growing the customer base outside the local area. There are many ways to proactively market this business such as direct mailing, bundle services, tall signage, more retail items, and more owner involvement. A full-time owner-operator will be extremely beneficial for this business as it will cut payroll expenses on having unnecessary employees and boosting the quality of the customer service. This business has everything in place for a potential buyer to proactively market this business while being fully involved in the day-to-day business operation.

Listing ID #001055
For more info, please call Moon Kim at 1-866-519-2421.

Financial

  • Asking Price: $429,000
  • Cash Flow: $134,329
  • Gross Revenue: $487,636
  • EBITDA: N/A
  • FF&E: $275,000
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 2007

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:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business is located in a 4,000 SF retail strip center in the epicenter of a highly populated residential area of Dallas and many retail businesses. All equipment is in impeccable condition and in working order.

Is Support & Training Included:

The owner of the business will provide the necessary training needed to smoothly transition into the business operation.

Purpose For Selling:

The owner of the business has too many businesses to operate and wants to ease t

Pros and Cons:

Few competitors are within the immediate market area, but this laundromat has built a very strong customer base over the past 13 years of operation by providing exceptional customer service along with very well-maintained equipment.

Opportunities and Growth:

Proactive marketing is needed to generate more cash flow as well as a full-time owner-operator that can cut payroll expense.

Additional Info

The business was founded in 2007, making the business 15 years old.
The deal does include inventory valued at $2,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell businesses. Nevertheless, the real reason and the one they say to you might be 2 totally different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may just be justifications to try to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a range of various other reasons. This is why it is really important that you not count absolutely on a vendor's word, yet rather, utilize the seller's answer in conjunction with your general due diligence. This will paint an extra realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies finance loans with the purpose of covering items like stock, payroll, accounts payable, etc. Remember that in some cases this can imply that revenue margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract new consumers? Most times, businesses have repeat clients, which form the core of their everyday earnings. Specific elements such as brand-new competitors sprouting up around the location, road building, as well as employee turnover can influence repeat customers and adversely impact future incomes. One important point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the opportunity to construct a returning customer base. A final thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood average house income effect future earnings prospects?