Listing ID: 74929
A fantastic pet retail store that also does dog grooming. A very nice business that has a ton of potential. Located in a very desirable, upscale, West Valley location. For more info call GoldStar Business Brokers.
- Asking Price: $150,000
- Cash Flow: $60,000
- Gross Revenue: $600,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: N/A
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Located in a busy shopping center.
The company was established in 2016, making the business 6 years old.
The deal doesn't include inventory valued at $30,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. Nonetheless, the real reason vs the one they say to you might be 2 totally different things. As an example, they may say "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or an array of other reasons. This is why it is very crucial that you not rely entirely on a vendor's word, yet instead, use the vendor's answer combined with your total due diligence. This will paint a much more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering items like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that revenue margins are too small. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that should be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in new clients? Often times, companies have repeat clients, which develop the core of their everyday revenues. Specific factors such as new competition growing up around the location, road building and construction, as well as staff turnover can influence repeat clients as well as adversely influence future revenues. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business regularly, the greater the opportunity to develop a returning customer base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the regional typical home income influence future revenue potential?