Listing ID: 73504
An experienced full-service bicycle shop that was established in 2013 Every member of its team knows bikes, rides bikes, and love bikes. The Shop has created a community of loyal bike lovers through its retail store, race teams, group rides, and kids events. The shop founded and sponsors several annual races and events. Vendor relationships built over years of profitable and consistent ordering yield inventory form the top brands in mountain, road, and city bikes, plus components, helmets, shoes, and other accessories. The Shop’s talented and experienced staff offer professional bike fitting, bike builds, and all types of repair and maintenance services. Its specialty is high end Mt Bikes.
- Asking Price: $200,000
- Cash Flow: $75,000
- Gross Revenue: $575,000
- EBITDA: $75,000
- FF&E: $50,000
- Inventory: $100,000
- Inventory Included: N/A
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Shop is located in an upscale shopping plaza close to many trails that provide great renting and selling opportunities.
Turnkey experienced and trained staff in place. Owner has been absentee but will provide training and support if requested.
Owner wants to pursue his growing west coast opportunities.
Located in an affluent area with multiple biking experiences near by - trails and paved. Only high end Mt. Bike shop in area.
A present owner can devote more focus and efforts that should easily grow the Shop.
The business was established in 2012, making the business 10 years old.
The sale doesn't include inventory valued at $100,000*, which ins't included in the requested price.
The business has 6 employees and resides in a building with disclosed square footage of 1,600 sq ft.
The real estate is leased by the company for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. Nevertheless, the genuine factor and the one they tell you may be 2 completely different things. As an example, they might say "I have too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competitors, recent decrease in earnings, or a variety of other factors. This is why it is really crucial that you not count totally on a vendor's word, however instead, use the vendor's response combined with your total due diligence. This will repaint a more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that earnings 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 additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new clients? Most times, operating businesses have repeat customers, which create the core of their daily revenues. Particular aspects such as brand-new competition sprouting up around the location, road construction, and also personnel turn over can affect repeat clients and also negatively impact future earnings. One important point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the greater the opportunity to construct a returning consumer base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? How might the regional median home income impact future revenue prospects?