Listing ID: 73221
Long term Google favorite, Tulsa area Dog Grooming Business looking for a new owner. Consistent YOY revenue and profit growth (last 4 years)! This pandemic resistant business has 800+ active clients. Dog loving owner has reached desired retirement age and is highly motivated to sell. Business is in a strip mall, next to an animal clinic. Premises is rented with current lease contract expiring 2H22. Simple business model with great SDE! Perfect for a first time business owner.
- Asking Price: $67,000
- Cash Flow: $69,417
- Gross Revenue: $84,709
- EBITDA: N/A
- FF&E: $5,000
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
- 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
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nevertheless, the genuine reason vs the one they tell you might be 2 entirely different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competitors, current decrease in earnings, or an array of other factors. This is why it is extremely crucial that you not count totally on a vendor's word, but instead, use the seller's response combined with your overall due diligence. This will repaint a much more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too tight. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in brand-new clients? Often times, companies have repeat consumers, which create the core of their daily revenues. Particular factors such as brand-new competitors growing up around the area, roadway building and construction, as well as employee turn over can affect repeat customers and adversely affect future earnings. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the better the chance to build a returning customer base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? How might the regional mean house income effect future earnings prospects?