Listing ID: 72533
This is an established bookstore in an affluent area. The business has a significant on-line presence and a devoted customer base, receiving a huge number of books and donations. This unique shop has a reputation of being a book concierge with a strong walk-in client base and affordable rent. It has become a landmark and an integral part of the city. Clients like to peruse the store’s many paperback books or order online.
This business has been running successfully from this location for over 40 years.
This business is an antithesis of the big store bookstore. It is small in comparison, has an interactive staff and great reviews.
By building more of an online presence, we see great additional income.
- Asking Price: $105,000
- Cash Flow: $35,000
- Gross Revenue: $96,000
- EBITDA: N/A
- FF&E: $5,800
- Inventory: $73,000
- Inventory Included: Yes
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1997, making the business 25 years old.
The transaction will include inventory valued at $73,000, which is included in the suggested price.
The company has 3 employees and is located in a building with estimated square footage of 1,500 sq ft.
The property is leased by the company for $2,300 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. Nevertheless, the genuine factor and the one they say to you might be 2 completely different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or a range of other factors. This is why it is very vital that you not depend absolutely on a vendor's word, but instead, utilize the seller's solution together with your overall due diligence. This will repaint a more practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies borrow money in order to cover items like stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that need to be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract new consumers? Most times, businesses have repeat customers, which develop the core of their day-to-day revenues. Particular factors such as brand-new competition sprouting up around the location, roadway construction, as well as staff turn over can influence repeat customers and negatively influence future incomes. One vital thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning customer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the neighborhood average household income impact future earnings potential?