Business Overview

This is a family-owned flooring retailer located in greater Sacramento since 1999 and later expanded into a warehouse in 2001. This business offers a wide variety of flooring products and services, including hardwood, ceramic, tile, carpeting, area rugs, luxury vinyl, and more. The family business has been handed down from prior generations and now the owners are ready to retire. This established business is profitable, includes $100,000 of inventory, provides a retailer an opportunity to outsource installs and service work while growing revenues. The business location has great parking and is located within a strip plaza with a large showroom. SA10165

Financial

  • Asking Price: $79,000
  • Cash Flow: $98,142
  • Gross Revenue: $930,125
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 1974

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,494
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Hours Monday thru Friday from 9 am to 5 pm, Saturday 10 am to 4 pm Down Payment $59,000

Is Support & Training Included:

2 weeks, 20 hours per week

Purpose For Selling:

Retirement

Additional Info

The venture was started in 1974, making the business 48 years old.
The transaction does include inventory valued at $100,000, which is included in the asking price.

The company has 2 PT employees and resides in a building with approx. square footage of 4,494 sq ft.
The building is leased by the company for $4,696 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell businesses. Nonetheless, the true reason vs the one they say to you may be 2 totally different things. For instance, they might state "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or a variety of other factors. This is why it is really essential that you not count totally on a vendor's word, yet rather, make use of the seller's solution together with your total due diligence. This will paint a more reasonable picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money with the purpose of covering items such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be satisfied or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in new clients? Many times, businesses have repeat consumers, which develop the core of their everyday earnings. Specific factors such as brand-new competitors growing up around the area, roadway construction, and personnel turn over can influence repeat customers as well as adversely influence future earnings. One vital point to think about 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 higher the chance to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? How might the regional mean home earnings effect future income prospects?