Listing ID: 74077
Two busy streets
- Asking Price: $90,000
- Cash Flow: $106,780
- Gross Revenue: $780,000
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $3,000
- Inventory Included: Yes
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
other business interest
Can expand hours
The company was started in 2016, making the business 6 years old.
The deal does include inventory valued at $3,000, which is included in the requested price.
The company has 4 employees and resides in a building with estimated square footage of 1,500 sq ft.
The building is leased by the company for $2,800 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell businesses. Nevertheless, the real reason and the one they say to you might be 2 totally different things. As an example, they may claim "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competition, recent decrease in incomes, or a variety of other reasons. This is why it is really essential that you not depend entirely on a seller's word, yet rather, utilize the seller's answer along with your total due diligence. This will paint a much more reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that earnings margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new consumers? Most times, operating businesses have repeat consumers, which form the core of their day-to-day profits. Certain elements such as brand-new competitors growing up around the location, road building, and personnel turn over can affect repeat clients and negatively influence future profits. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the better the opportunity to develop a returning customer base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? How might the neighborhood typical home income effect future revenue potential?