Business Overview

This is a beautiful, well-established, turn-key custom frame shop. It’s the ideal business for someone who has a passion for art. The existing customer and referral base provides immediate cash flow, while a foundation built upon an established reputation helps assure continued growth. This business has a long track record of profitability and performed well during the pandemic.
This business has contracts with the city and local law enforcement which is very profitable every year. The building itself is has room to grow. A great value and opportunity for a first-time business owner.
Great property management. Space can be reconfigured, includes garage door. Water included.

Financial

  • Asking Price: $65,000
  • Cash Flow: $24,000
  • Gross Revenue: $59,000
  • EBITDA: N/A
  • FF&E: $6,000
  • Inventory: $8,000
  • Inventory Included: Yes
  • Established: N/A
Purpose For Selling:

retirement

Additional Info

The deal shall include inventory valued at $8,000, which is included in the asking price.

The real estate is leased by the company for $1,600 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the real reason and the one they say to you might be 2 entirely different things. For instance, they might say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competition, current decrease in incomes, or an array of various other reasons. This is why it is very vital that you not depend completely on a seller's word, but rather, utilize the seller's solution in conjunction with your overall due diligence. This will repaint a more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering items such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that earnings margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in new customers? Often times, companies have repeat customers, which form the core of their everyday profits. Specific factors such as new competitors sprouting up around the area, road building and construction, as well as employee turnover can influence repeat clients as well as adversely influence future earnings. One crucial point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the greater the opportunity to develop a returning customer base. A last thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood mean home earnings impact future income prospects?