Listing ID: 74863
Well established phoenix barber shop. Current owner is ready to retire from this profitable shop. For more info call GoldStar Business Brokers.
- Asking Price: $39,000
- Cash Flow: $54,000
- Gross Revenue: $72,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
850 s.f. four chair barber shop
The business was started in 1985, making the business 37 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell operating businesses. However, the genuine reason vs the one they tell you might be 2 totally different things. For instance, they may state "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be excuses to try to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of various other reasons. This is why it is extremely vital that you not count totally on a seller's word, but instead, use the vendor's response along with your general due diligence. This will paint a much more realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering things such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that profit margins are too thin. Lots of businesses fall into a revolving door of taking loans 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 building where the business resides. The business might have existing contracts with vendors that have to be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in new consumers? Many times, companies have repeat clients, which create the core of their day-to-day revenues. Particular elements such as brand-new competitors growing up around the area, road building, and personnel turnover can impact repeat consumers as well as adversely affect future revenues. One important thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the better the possibility to construct a returning client base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the local typical family earnings effect future income potential?