Listing ID: 73551
- Asking Price: $300,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:3,816
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell businesses. Nonetheless, the real reason vs the one they tell you may be 2 completely different things. For instance, they might say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current decrease in profits, or an array of other reasons. This is why it is very crucial that you not count totally on a seller's word, but instead, use the seller's solution in conjunction with your overall due diligence. This will repaint a much more practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover items such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that profit margins are too thin. Numerous organisations come 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 tools or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new consumers? Many times, businesses have repeat customers, which develop the core of their everyday revenues. Certain factors such as new competitors growing up around the area, roadway building and construction, as well as employee turnover can affect repeat customers and also negatively influence future revenues. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the greater the chance to develop a returning client base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Exactly how might the regional mean family income impact future revenue prospects?