Listing ID: 73071
Location, location location! This family owned and run business has been successfully operating since 1984. Primarily engaged in tailoring & alterations, it also serves as a dry cleaning drop-off/pick-up station. Ideally located at a major intersection in a very busy plaza. It has a stellar reputation and excellent rating on Google and Yelp. All customer data, including the current prices for alterations and dry cleaning, are computerized and will be transferred to the new owner. This 1,600 sq ft shop is fully equipped with three dressing rooms, three work tables, and 13 varying duty sewing machines for all tailoring/alteration needs. All FF&E is included. Owner is retiring.
- Asking Price: $300,000
- Cash Flow: $130,000
- Gross Revenue: $300,000
- EBITDA: N/A
- FF&E: $40,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1984
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
up to 60 days 30/hrs week
Great reputation, long-established
The venture was established in 1984, making the business 38 years old.
The business has 1 employees and is located in a building with estimated square footage of 1,600 sq ft.
The real estate is leased by the business for $3,242 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nonetheless, the genuine reason and the one they say to you may be 2 totally different things. As an example, they might say "I have too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or an array of other reasons. This is why it is very essential that you not depend absolutely on a vendor's word, however instead, use the seller's answer together with your overall due diligence. This will paint an extra realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering points like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can indicate that profit margins are too thin. Numerous businesses come under 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 consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be met or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new clients? Most times, operating businesses have repeat clients, which develop the core of their day-to-day revenues. Specific factors such as brand-new competitors sprouting up around the area, road building and construction, and personnel turn over can affect repeat clients and negatively affect future incomes. One important thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the greater the opportunity to develop a returning client base. A last idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the regional typical house earnings influence future income prospects?