Listing ID: 71217
Busy Used Bookstore in the Coastal Carolinas. Popular with tourists and locals as well. They take trade ins for credit against your next purchase. Because of this they have a long term loyal customer base. They also have new books for sale and popular book signings with local authors. Small enough to have low rent big enough to have thousands of books.
- Asking Price: $169,000
- Cash Flow: $81,302
- Gross Revenue: $197,979
- EBITDA: N/A
- FF&E: N/A
- Inventory: $42,000
- Inventory Included: Yes
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The business was established in 2007, making the business 15 years old.
The transaction does include inventory valued at $42,000, which is included in the suggested price.
The company has 4 employees and is situated in a building with approx. square footage of 1,000 sq ft.
The property is leased by the business for $2,300 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. However, the genuine reason and the one they say to you might be 2 absolutely different things. For instance, they may say "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or a range of various other reasons. This is why it is really important that you not rely entirely on a vendor's word, yet rather, make use of the vendor's response together with your total due diligence. This will repaint an extra practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering items such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new customers? Many times, operating businesses have repeat clients, which form the core of their day-to-day earnings. Specific elements such as new competitors growing up around the location, roadway building, and employee turn over can impact repeat clients as well as negatively affect future incomes. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the higher the opportunity to develop a returning consumer base. A final thought is the basic area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood mean home income impact future revenue prospects?