Listing ID: 74879
Established Vintage Furniture Store with Coffee Bar for sale in Phoenix. Vintage furniture, fully equipped with Coffee Bar. New owner can add products and services to take this existing business to next level. Opportunity awaits. Endless possibilities. Price includes approximately $65,000 in Inventory. Must see. Beautifully built out. Call now for more details.
- Asking Price: $175,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
little competition. Busy area.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. However, the true reason and the one they tell you may be 2 entirely different things. As an example, they might claim "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be justifications to attempt to conceal the reality of changing demographics, increased competition, current decrease in earnings, or a variety of various other reasons. This is why it is extremely important that you not rely absolutely on a vendor's word, but instead, use the vendor's response combined with your overall due diligence. This will paint a more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover things like stock, payroll, accounts payable, and so on. Remember that occasionally this can mean that earnings margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new consumers? Many times, operating businesses have repeat clients, which form the core of their daily profits. Certain aspects such as new competitors sprouting up around the area, roadway building and construction, as well as personnel turn over can affect repeat clients and negatively influence future earnings. One essential point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the possibility to develop a returning customer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Exactly how might the local typical family earnings impact future income prospects?