Business Overview

This is a fantastic business with a unique product line. Business runs well on its own, current owner brought the business to this level and is ready to hand it off to the next owner to continue the growth. Very strong customer base. Environmentally friendly.

Financial

  • Asking Price: $650,000
  • Cash Flow: $176,000
  • Gross Revenue: $735,000
  • EBITDA: $176,000
  • FF&E: $25,000
  • Inventory: $75,000
  • Inventory Included: Yes
  • Established: 1993

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:950
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

950 Sq Ft of Commercial Space

Is Support & Training Included:

The Seller will provide training for 2 weeks at no cost.

Purpose For Selling:

Owner is moving in a new direction.

Pros and Cons:

Very unique products offer a limited competitive space.

Opportunities and Growth:

Increasing awareness, along with marketing and sales in this space has unlimited growth potential.

Additional Info

The venture was started in 1993, making the business 29 years old.
The deal does include inventory valued at $75,000, which is included in the requested price.

The company has 4 employees and is located in a building with approx. square footage of 950 sq ft.
The building is leased by the business for $2,250 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. However, the real factor and the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is extremely essential that you not depend totally on a vendor's word, but rather, use the vendor's answer combined with your total due diligence. This will paint a more sensible image of the business's current scenario.

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. Numerous operating businesses finance loans with the purpose of covering items like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that revenue margins are too thin. Lots of organisations 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 take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new customers? Often times, operating businesses have repeat customers, which form the core of their daily revenues. Certain variables such as brand-new competitors sprouting up around the area, road construction, and staff turn over can affect repeat clients and adversely affect future incomes. One essential thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the better the chance to build a returning client base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the regional typical household income effect future earnings prospects?