Listing ID: 70131
Profitable: CHECK. Prime Location: CHECK. Product Demand: CHECK.
This mattress retail business checks all the boxes. The current owners purchased the business from the original owner, and perform administrative work as well as sales when needed. There are two 1099 employees who work both in the showroom and make deliveries.
Situated near the interstate on a main thoroughfare, this business is in a prime spot with tons of traffic. The owners think the key to unlocking future growth in this business is the addition of a strong salesperson coupled with a strategic approach to marketing.
The owners have multiple businesses, and this mattress retailer is for sale due their desire to focus more on other ventures.
- Asking Price: $130,000
- Cash Flow: $68,470
- Gross Revenue: $255,203
- EBITDA: N/A
- FF&E: $20,000
- Inventory: $75,000
- Inventory Included: Yes
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,200
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
other business interests
The business was established in 2008, making the business 14 years old.
The sale will include inventory valued at $75,000, which is included in the suggested price.
The business has 2 employees and is situated in a building with disclosed square footage of 3,200 sq ft.
The property is leased by the company for $5,350 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell companies. Nevertheless, the real reason and the one they say to you may be 2 totally different things. As an example, they might state "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competition, current reduction in revenues, or an array of other factors. This is why it is very important that you not rely totally on a seller's word, yet instead, utilize the seller's answer combined with your total due diligence. This will repaint a more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that profit margins are too thin. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be met or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in brand-new clients? Many times, operating businesses have repeat customers, which form the core of their day-to-day profits. Certain factors such as new competitors growing up around the location, road building and construction, as well as staff turn over can impact repeat clients and adversely influence future incomes. One important thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to build a returning customer base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional mean family earnings influence future income potential?