Listing ID: 74923
Very established full service Dry Cleaning Plant located in a Grocery Store anchored center in the East Valley, showing very low rent with approx 2,000 sq. ft. Drop location along with the Plant use the Point of Sale systems, and are located within a close distance of each other, both servicing the East Valley area. Seller is showing gross sales of approx $200,000.00 yearly with a net profit of approx $60,000.00 yearly owner operated. The two locations together are priced at only $110,000.00.
- Asking Price: $110,000
- Cash Flow: $60,000
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: $70,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Plant leases approx 2,000 sq. ft. Rent is approx. $2,000.00 monthly. Drop location is approx. 1,200 sq. ft. Rent is approx. $2,000.00 monthly.
Seller will train the buyer for two weeks.
Yes, the seller will explain.
The company was founded in 2012, making the business 10 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell operating businesses. Nonetheless, the real reason vs the one they tell you might be 2 entirely different things. As an example, they may say "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competition, recent reduction in profits, or a variety of other reasons. This is why it is extremely essential that you not rely absolutely on a seller's word, but rather, utilize the vendor's solution combined with your overall due diligence. This will repaint an extra reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering items like stock, payroll, accounts payable, and so on. Remember that occasionally this can mean that earnings margins are too thin. 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 additionally be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new consumers? Often times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Specific factors such as new competition growing up around the location, road building, and also personnel turn over can influence repeat clients as well as adversely influence future earnings. One important point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the higher the possibility to develop a returning client base. A final idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood typical house earnings impact future revenue prospects?