Business Overview

Business Opportunity: Well-established business, ”A Music Store on Main Street,” is a great opportunity for a musician to make a living in the business they love in a small town atmosphere in lovely Southern Oregon. Sale includes inventory, furnitures, fixtures, and equipment. Retail music store that caters to the individual musician as well as to school bands. Excellent reputation and goodwill. Owner will provide training. New and used musical instruments, equipment, and accessories. Fun business!

Financial

  • Asking Price: $185,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: $15,000
  • Inventory: $80,000
  • Inventory Included: Yes
  • Established: 2011

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Downtown Klamath Falls Main Street location currently rented on a month-to-month basis. Front retail area with excellent frontage and alley access plus private back area with sound-proof rooms for lessons, upper mezzanine area for office space and additional storage.

Is Support & Training Included:

Owner will provide training to the new owner.

Purpose For Selling:

Retirement of 1 of the owners

Pros and Cons:

Voted "Best of the Basin" music store several years in a row. The business services the area's school music programs as well as providing private music lessons, rental equipment to the local schools, and sales of new and used musical instruments, equipment, and accessories. Specializing in stringed instruments, but there is something for everyone. The owner will retain and continue to do instrument repairs and piano tuning but all of the existing inventory including the pianos are included in the sale.

Opportunities and Growth:

Minimal competition in the area and with no sales tax, the retail draw includes three counties of Klamath County, Lake County, and Siskiyou County which includes the very Northern California communities of Tulelake and Butte Valley areas. Only one direct competitor.

Additional Info

The venture was founded in 2011, making the business 11 years old.
The transaction shall include inventory valued at $80,000, which is included in the requested price.

The company has 1.5 employees and is located in a building with approx. square footage of 3,000 sq ft.
The property is leased by the business for $800 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell businesses. Nevertheless, the genuine factor vs the one they say to you may be 2 completely different things. For instance, they might state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, current decrease in revenues, or an array of other factors. This is why it is really crucial that you not rely absolutely on a seller's word, yet rather, make use of the vendor's solution in conjunction with your general due diligence. This will repaint a more reasonable picture of the business's current situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies finance loans so as to cover points like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that revenue margins are too small. Many businesses fall 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 commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to be met or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in new customers? Often times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Particular elements such as brand-new competitors growing up around the location, road building and construction, and staff turn over can impact repeat customers and negatively impact future incomes. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the higher the chance to develop a returning client base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood typical household earnings effect future earnings prospects?