Listing ID: 72946
Inside sale: $90,000
Money Making Store
A wonderful deal at the ASKING PRICE: $1.49 Million + Inventory
- Asking Price: $1,490,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- 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 kinds of reasons individuals resolve to sell businesses. Nevertheless, the true reason and the one they say to you might be 2 absolutely different things. As an example, they may say "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or a range of other factors. This is why it is very crucial that you not depend entirely on a vendor's word, yet rather, utilize the seller's response together with your total due diligence. This will repaint a more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies borrow money so as to cover things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that profit margins are too small. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be fulfilled or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new customers? Often times, companies have repeat consumers, which create the core of their daily profits. Certain variables such as new competition growing up around the area, roadway construction, and staff turnover can affect repeat customers and negatively influence future incomes. One essential point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the chance to develop a returning consumer base. A final idea is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? How might the neighborhood mean house income impact future revenue potential?