Business Overview

This retail cupcake bakery offers unique and delicious cupcakes and homemade ice cream, all prepared in-store. In addition to these two staple items the business is known for, they also sell third-party products, such as gluten-free baked goods. The bakery produces 10-12 core flavors on a daily basis, as well as 2 specialty flavors each week. The shop is open seven days per week, 10 a.m. to 8 p.m. on Mondays through Fridays, and 12 p.m. to 8 p.m. on Sundays. The business has recovered nicely from the pandemic and had its biggest year in 2021. Still, there are some impactful and immediate growth opportunities available to the new owner that the current owner has just not had the time to focus on. This primarily includes targeting large special orders for corporate gifts, parties, weddings, etc. The owners spend a few hours each week on this business, as they both have other business responsibilities outside of the bakery.

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Financial

  • Asking Price: $215,000
  • Cash Flow: $90,802
  • Gross Revenue: $299,928
  • EBITDA: $90,802
  • FF&E: $39,245
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 2017

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,700
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is located in an extremely high-traffic area on a major thoroughfare in a popular retail strip center.

Is Support & Training Included:

The seller will provide training as needed, but the full-time manager will provide most of the instruction as she runs the day-to-day operation.

Purpose For Selling:

Other opportunities and responsibilities

Pros and Cons:

The bakery sits in a fantastic area to reach its target customer type. There are competitive options in the immediate area that offer alternative treats, but no other specialty cupcake bakery.

Opportunities and Growth:

The business has never targeted large specialty orders in the past, but it's something the owner would do if he was keeping the business. corporate gifts, birthdays and other parties, weddings, school functions - there are several types of customers that the business could go after to get these higher-volume, more profitable orders.

Additional Info

The venture was started in 2017, making the business 5 years old.

The business has 8 employees and is situated in a building with disclosed square footage of 1,700 sq ft.
The property is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell businesses. However, the genuine reason and the one they say to you may be 2 entirely different things. As an example, they might say "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in incomes, or a variety of various other factors. This is why it is really essential that you not count entirely on a vendor's word, however instead, use the vendor's solution in conjunction with your overall due diligence. This will repaint a much more realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies take out loans so as to cover points like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that earnings margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract new clients? Most times, businesses have repeat consumers, which create the core of their day-to-day profits. Certain elements such as brand-new competition growing up around the location, road construction, and also employee turnover can affect repeat consumers as well as negatively influence future profits. One essential point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the greater the chance to develop a returning client base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Just how might the local average household earnings effect future revenue potential?