Business Overview

Hip and lovely fashion boutique located in walkable urban shopping district. Low overhead and high profit margin. Attractive hours. Tuesday-thru-Saturday. Ample free parking. Clothing, accessories, gifts, face masks, games, pets and children.

Financial

  • Asking Price: $165,000
  • Cash Flow: $85,000
  • Gross Revenue: $195,000
  • EBITDA: N/A
  • FF&E: $11,000
  • Inventory: $28,000
  • Inventory Included: Yes
  • Established: 2016

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,418
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Attractive lease buildout and store front showcase.

Is Support & Training Included:

The seller will provide complete training and orientation to the purchaser.

Purpose For Selling:

The seller owns two business and is tired.

Opportunities and Growth:

Internet sales could be enhanced.

Additional Info

The venture was established in 2016, making the business 6 years old.
The transaction shall include inventory valued at $28,000, which is included in the requested price.

The company has 1 p.t. employees and is located in a building with approx. square footage of 1,418 sq ft.
The real estate is leased by the company for $2,976 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell companies. However, the true factor vs the one they tell you might be 2 totally different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competitors, current reduction in profits, or an array of other factors. This is why it is really essential that you not count completely on a vendor's word, but instead, make use of the vendor's answer together with your general due diligence. This will repaint a much more realistic image of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that revenue margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area draw in new customers? Often times, businesses have repeat customers, which create the core of their everyday revenues. Particular aspects such as new competition growing up around the area, roadway building, as well as employee turnover can affect repeat consumers and negatively affect future earnings. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the greater the possibility to develop a returning consumer base. A last thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the regional average household earnings influence future earnings potential?