Listing ID: 70254
Located on a bustling thoroughfare in one of Knoxville’s most heavily-trafficked areas, this Chinese restaurant has quietly built a following thanks to numerous nearby employers, commuters and nearby neighborhoods.
Business has grown through Covid, and the restaurant offers dine in, take-out and delivery options. The owner is actively involved in the day-to-day operations of the business.
The business is for sale due to the owner’s desire to pursue other interests.
- Asking Price: $175,000
- Cash Flow: $113,000
- Gross Revenue: $508,000
- EBITDA: N/A
- FF&E: $20,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,695
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The sale does include inventory valued at $10,000, which is included in the listing price.
The business has 5 employees and resides in a building with approx. square footage of 1,695 sq ft.
The property is leased by the business for $2,937 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell companies. However, the true reason vs the one they say to you might be 2 entirely different things. For instance, they might say "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competition, current reduction in revenues, or an array of various other factors. This is why it is extremely important that you not count completely on a seller's word, yet instead, use the seller's answer in conjunction with your overall due diligence. This will repaint an extra practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover things like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in new clients? Many times, operating businesses have repeat customers, which form the core of their daily earnings. Particular elements such as brand-new competition sprouting up around the area, road building and construction, and personnel turnover can impact repeat consumers as well as negatively influence future revenues. One important point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the possibility to build a returning client base. A last idea is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Just how might the regional median house income effect future revenue potential?