Listing ID: 72923
Individually Owned & Operated | Strong Management Team
This historic restaurant and general store offers a unique business opportunity in Northwest Arkansas. The business is more than your basic convenience store in that it offers locals a place to meet, buy groceries, eat home cooked meals and fill up their gas tanks. The sellers have created a loyal customer base and with increasing population growth they are prepared for further expansion. The owners are ready to retire and will provide training and consultation.
This general store does not have any competition in the area without driving 5-10 miles. One of the largest groups of consistent customers for the store are the employees and large haul truck drivers for nearby companies. You can see a variety of vehicles parked outside each day when Breakfast, Lunch and Dinner is being served. This business has strong management in place and employees will want to stay.
The restaurant offers country style menu items and the convenience store has a large variety of grocery items as well as some clothing. In addition to gas/diesel sales they offer off-road diesel which has higher than normal sales volume each month.
- Asking Price: $879,000
- Cash Flow: $156,530
- Gross Revenue: $1,989,519
- EBITDA: N/A
- FF&E: $100,000
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. Nonetheless, the real reason vs the one they tell you may be 2 entirely different things. For instance, they may claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or a variety of various other reasons. This is why it is really important that you not depend entirely on a vendor's word, yet rather, use the vendor's response in conjunction with your general due diligence. This will repaint a much more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that profit margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be met or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new customers? Many times, operating businesses have repeat clients, which create the core of their day-to-day earnings. Particular variables such as new competitors growing up around the area, road building and construction, and also staff turnover can impact repeat clients as well as adversely affect future profits. One essential thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the opportunity to develop a returning client base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it located on the edge of town? Just how might the regional median household earnings impact future revenue prospects?