Listing ID: 73190
This furniture store has provided custom and quality-designed products for over a decade. All furniture is made in the USA and customers often design multiple rooms and entire homes around these products. Originally a family operated business, the owners are now preparing for retirement. The storefront is well located and easily accessible. The business will have various promotions and advertisements keeping customers coming back to shop again and again.
Showroom will come stocked with all current inventory as well as all equipment and fixtures. Purchase includes the delivery vehicle and trailer. Owner’s would happily make necessary introductions to manufacturers and other resources for a turnkey transaction.
+Business has reached $1.5M in sales for three consecutive years
+Great margins on sought-after domestically made products
+Turn-key transaction with seamless transition to new ownership
+Website optimized for order tracking and other customer communication
+Introduce various interior design options
+Owner is interested in a smooth transition. Would consider remaining as a sales employee for 6-12 months.
7,500 Sq Ft store front. Warehouse space available
- Asking Price: $1,200,000
- Cash Flow: $430,000
- Gross Revenue: $1,500,000
- EBITDA: N/A
- FF&E: $120,000
- Inventory: $245,000
- Inventory Included: Yes
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:7,500
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 2006, making the business 16 years old.
The deal shall include inventory valued at $245,000, which is included in the listing price.
The business has 3 employees and is located in a building with estimated square footage of 7,500 sq ft.
The property is leased by the business for $8,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell operating businesses. Nonetheless, the real factor vs the one they say to you might be 2 entirely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competitors, recent reduction in profits, or a range of other reasons. This is why it is very essential that you not count absolutely on a seller's word, yet instead, utilize the seller's solution along with your general due diligence. This will paint a more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover things such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too tight. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract new consumers? Most times, operating businesses have repeat customers, which form the core of their daily earnings. Specific elements such as new competitors growing up around the area, roadway building and construction, and employee turn over can affect repeat consumers as well as negatively influence future incomes. One essential point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the better the opportunity to develop a returning client base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Just how might the regional average home earnings impact future earnings potential?