Listing ID: 72970
Trendy, upscale children’s boutique in the heart of northwest Oklahoma City. Well established and profitable.
- Asking Price: $240,000
- Cash Flow: $80,000
- Gross Revenue: $850,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $100,000
- Inventory Included: Yes
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,200
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Emotional appeal. Strip shopping center. Ample parking. Wednesday-thru-Sunday operation only
The owners will provide a covenant-not-to-compete as part of the purchase price.
The owners desire change after more than a decade of ownership.
Select, proprietary lines offered by the store.
The venture was established in 2009, making the business 13 years old.
The transaction will include inventory valued at $100,000, which is included in the suggested price.
The business has 2 f.t., 2 p.t. employees and is located in a building with approx. square footage of 3,200 sq ft.
The property is leased by the business for $3,466 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell companies. Nevertheless, the real factor vs the one they say to you might be 2 absolutely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or a variety of other factors. This is why it is really vital that you not depend completely on a vendor's word, however rather, use the seller's response in conjunction with your total due diligence. This will repaint a much more realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover things such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that earnings margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back 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 structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new consumers? Many times, operating businesses have repeat consumers, which form the core of their everyday profits. Certain elements such as new competitors sprouting up around the area, roadway construction, and personnel turn over can impact repeat customers and also negatively affect future earnings. One crucial thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the greater the opportunity to construct a returning consumer base. A final idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Exactly how might the regional median family income impact future revenue potential?