Listing ID: 69980
This location has stood the test of time! Very high margins and increasing online presence should certainly keep it going for another nine decades. Great location with amazing customer traffic and a small footprint to keep overhead low and profits high. This truly is a cash cow that services local and tourist customers. Seller advises the landlord will sign a new long term lease with new owner. This is very rare and amazing opportunity! Email or call today for more info.
- Asking Price: $499,000
- Cash Flow: $191,102
- Gross Revenue: $308,625
- EBITDA: N/A
- FF&E: $64,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1927
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:600
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The company was established in 1927, making the business 95 years old.
The company has 1 employees and is situated in a building with estimated square footage of 600 sq ft.
The building is leased by the company for $1,462 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. However, the real factor vs the one they say to you might be 2 absolutely different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may simply be excuses to attempt to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of various other reasons. This is why it is very essential that you not depend entirely on a seller's word, yet instead, utilize the vendor's response in conjunction with your general due diligence. This will paint an extra practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that should be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in brand-new clients? Many times, operating businesses have repeat customers, which develop the core of their daily earnings. Specific variables such as brand-new competition growing up around the area, roadway construction, and also personnel turn over can influence repeat clients as well as adversely impact future incomes. One important point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the greater the chance to develop a returning customer base. A final idea is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Just how might the local mean household earnings impact future income prospects?