Listing ID: 74295
Offered for sale is an award-winning restaurant. The business has an ideal location with minimal competition, ample park and a huge patio. The owners have a staff in place and do not work in the business day to day. Sales are up 70% over this period last year and are continuing to grow.
The business has been in operation just since 2019 and not only survived but did well through COVID in 2020. The business is performing exceptionally well in 2021 and has not yet reached full potential. The owners are selling due to relocation needs.
- Asking Price: $445,000
- Cash Flow: $214,546
- Gross Revenue: $677,142
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. However, the genuine factor and the one they tell you might be 2 absolutely different things. For instance, they may claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or a range of other reasons. This is why it is very important that you not rely absolutely on a vendor's word, yet instead, use the vendor's response in conjunction with your general due diligence. This will repaint an extra practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Remember that occasionally this can mean that revenue margins are too small. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise 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 need to be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new consumers? Many times, companies have repeat customers, which form the core of their day-to-day earnings. Certain aspects such as brand-new competitors sprouting up around the area, road construction, as well as staff turn over can affect repeat consumers as well as adversely influence future revenues. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business often, the greater the possibility to construct a returning client base. A final idea is the basic area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? How might the neighborhood mean home income impact future earnings prospects?