Listing ID: 73173
Specialty interior design business offering exclusive products and unique options to both homeowners and commercial clients. Renowned for its custom faux botanicals and holiday décor, this business caters to those with discriminating tastes who are looking for unique, high-quality Christmas ornaments, trees, holiday décor, collectibles, gifts, and home or business decorations. The business has a substantial inventory that could carry a new owner for quite some time as well as an extensive list of loyal clients. Seller will also provide the new owner introductions to their niche vendor contacts for preferred wholesale pricing. This business provides concierge services to a niche market, but has significant opportunity for growth and expansion into areas that the current owner has not explored. The business works well as a stand-alone business, however, it would also pair nicely with any related business such as florists, interior decorators, event planners, etc.
- Asking Price: $420,000
- Cash Flow: $82,400
- Gross Revenue: $284,719
- EBITDA: N/A
- FF&E: $11,610
- Inventory: $316,250
- Inventory Included: Yes
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
currently month-to-month rent
4 weeks; additional holiday season
The company was established in 2003, making the business 19 years old.
The transaction will include inventory valued at $316,250, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the real factor and the one they say to you might be 2 completely different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competition, recent reduction in incomes, or a variety of other reasons. This is why it is really crucial that you not rely absolutely on a seller's word, but rather, utilize the vendor's solution combined with your total due diligence. This will repaint a more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that revenue margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in new clients? Often times, operating businesses have repeat consumers, which create the core of their everyday revenues. Specific elements such as new competition sprouting up around the location, roadway building and construction, and also personnel turn over can influence repeat consumers and also adversely impact future revenues. One important thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business often, the greater the chance to develop a returning customer base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it located on the edge of town? How might the local average family earnings influence future income prospects?