Listing ID: 73023
This Plumbing, Heating and Air business has been around for 40 years. They have hundreds of loyal and repeat customers for over a number of generations. This is a total Turn-Key business to carry on this 40 year tradition.
- Asking Price: $550,000
- Cash Flow: $190,301
- Gross Revenue: $586,375
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Home Based Business (Home Based)
For a reasonable amount of time
Other business interests
There are a number of companies to compete with in this industry, BUT this business has been around for 40 years with many repeat and loyal customers.
This business could be expanded by adding more employees and advertising.
This Business Is Home Based
The business was started in 1980, making the business 42 years old.
The deal won't include inventory valued at $30,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell operating businesses. Nevertheless, the real factor vs the one they tell you may be 2 absolutely different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in profits, or an array of various other reasons. This is why it is very vital that you not count entirely on a seller's word, but rather, use the vendor's answer in conjunction with your overall due diligence. This will repaint an extra sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover points like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that profit margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in brand-new consumers? Many times, operating businesses have repeat customers, which develop the core of their daily profits. Particular factors such as new competition growing up around the location, roadway building, as well as employee turn over can affect repeat customers and negatively impact future earnings. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the higher the chance to construct a returning client base. A last thought is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local average family earnings influence future revenue prospects?