Business Overview

This is a very well established upscale furniture store. Top of the line furniture and accessories that you will not find in a typical furniture store. This business was established over 40 year s ago and is a favorite of interior decorators and designers. It is a totally turnkey operation with a great reputation and many repeat customers.

Financial

  • Asking Price: $275,000
  • Cash Flow: $71,365
  • Gross Revenue: $390,811
  • EBITDA: N/A
  • FF&E: $60,000
  • Inventory: $150,000
  • Inventory Included: Yes
  • Established: 1973

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Training available for a reasonable period of time

Purpose For Selling:

Retirement

Pros and Cons:

This business not only sells furniture but also does silk flower arrangements which not many of these type of businesses can compete with in the area

Opportunities and Growth:

With additional advertising this business could grow significantly.

Additional Info

The company was founded in 1973, making the business 49 years old.
The deal does include inventory valued at $150,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell companies. Nevertheless, the real factor and the one they say to you might be 2 entirely different things. For instance, they might claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is extremely essential that you not count completely on a vendor's word, but rather, make use of the vendor's answer in conjunction with your total due diligence. This will repaint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans in order to cover points like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that earnings margins are too small. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be met or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in brand-new clients? Often times, operating businesses have repeat customers, which create the core of their daily revenues. Specific elements such as new competition sprouting up around the location, road building and construction, and also staff turn over can impact repeat clients and also negatively influence future earnings. One important thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning customer base. A final idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Just how might the local typical house earnings impact future income potential?