Listing ID: 74032
Tobacco , Link & Food
- Asking Price: $11,500
- Cash Flow: $22,000
- Gross Revenue: $298,008
- EBITDA: N/A
- FF&E: $23,009
- Inventory: $1,600
- Inventory Included: Yes
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,700
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Great walk up traffic
other business interest
Can extend hours
The business was founded in 2019, making the business 3 years old.
The sale will include inventory valued at $1,600, which is included in the listing price.
The company has 1 employees and resides in a building with estimated square footage of 1,700 sq ft.
The building is leased by the business for $1,900 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nonetheless, the genuine factor and the one they tell you might be 2 absolutely different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in profits, or an array of other reasons. This is why it is really important that you not rely entirely on a seller's word, yet rather, use the vendor's solution combined with your general due diligence. This will repaint an extra sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses borrow money in order to cover items such as stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that profit margins are too tight. Lots of companies come under a revolving door of taking loans 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 structure where the business resides. The business might have existing contracts with suppliers that should be met or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new customers? Many times, companies have repeat customers, which form the core of their day-to-day revenues. Specific aspects such as new competition growing up around the area, roadway building, as well as staff turn over can influence repeat customers as well as negatively impact future earnings. One important point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the greater the possibility to construct a returning client base. A last thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the local average house income influence future income potential?