Listing ID: 74301
This highly reputable alterations shop provides any custom alteration service one could need. All work is completed in house. A diverse set of customers are served from formal events to corporate needs to general alteration and repairs. The store is well equipped with all the necessary equipment to be full-service and all equipment conveys.
The opportunity is there to design custom clothing in addition to the alterations business.
- Asking Price: $69,000
- Cash Flow: $61,650
- Gross Revenue: $86,394
- 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 sorts of reasons people choose to sell companies. Nonetheless, the real reason vs the one they say to you might be 2 completely different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or a range of various other reasons. This is why it is really essential that you not depend completely on a seller's word, but instead, use the vendor's answer along with your overall due diligence. This will repaint a more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover things such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that earnings margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new consumers? Many times, operating businesses have repeat customers, which form the core of their daily profits. Specific variables such as brand-new competitors growing up around the location, roadway building, and also employee turnover can affect repeat customers and also adversely impact future incomes. One vital point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the better the opportunity to develop a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Just how might the local average house income influence future revenue prospects?