Business Overview

This is an opportunity to acquire a distributor that has an established relationship with the majority of independent convenience and grocery stores in the Houston area. Presently, this distributor represents leading suppliers of incense but a potential acquirer could leverage this loyal customer base to market a variety of other products that are popular in these outlets. The structure to grow is already in place–utilizing efficient route planning, the customer base is contacted on a 2-week cycle, the product is delivered and payment by check or credit card is received. Very little working capital is required as the customer order pattens are tracked, volumes are predicted so minimum “just in time” quantities are ordered from the suppliers. The company has exclusive distribution rights in Texas for their best-selling incense product. This is a home-based business so the costs of running the business are low. Please refer to CBB Listing #8263

Financial

  • Asking Price: $122,000
  • Cash Flow: $43,415
  • Gross Revenue: $230,423
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 2017

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

Home-based business (Home Based)

Is Support & Training Included:

Seller will train

Purpose For Selling:

Retirement

Opportunities and Growth:

The growth opportunities are to sell and expanded product line to the loyal base of current customers and extend the market territory in Texas outside of Houston.

Home Based:

This Business Is Home Based

Additional Info

The venture was started in 2017, making the business 5 years old.
The sale shall include inventory valued at $2,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell operating businesses. Nevertheless, the true reason vs the one they tell you may be 2 entirely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might just be justifications to attempt to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or a variety of various other reasons. This is why it is extremely crucial that you not depend absolutely on a vendor's word, yet instead, use the vendor's response in conjunction with your total due diligence. This will paint a more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money with the purpose of covering things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that earnings margins are too small. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that have to be satisfied or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in brand-new clients? Most times, companies have repeat customers, which create the core of their daily profits. Particular elements such as new competitors sprouting up around the area, roadway building, as well as staff turn over can impact repeat customers and also negatively affect future profits. One vital thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the higher the opportunity to develop a returning customer base. A last idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Just how might the local average home earnings effect future revenue potential?