Listing ID: 74941
Only open 40 hrs per week. Owners cover all 40 hrs. Fantastic opportunity for expansion. They are the busiest musical instrument rental site in the valley. 2020 (down year) was 70k in rental commissions. They also rent practice/lesson rooms, 48k/yr in 2020 (down year). Could use more inventory, any advertising would be great-could do much better than is is now. For more info call GoldStar Business Brokers.
- Asking Price: $150,000
- Cash Flow: $78,000
- Gross Revenue: $264,190
- EBITDA: N/A
- FF&E: N/A
- Inventory: $60,000
- Inventory Included: Yes
- Established: 2007
- 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
3200 s.f. in a major shopping center and shopping district-high traffic location.
Moving out of state
The venture was started in 2007, making the business 15 years old.
The deal shall include inventory valued at $60,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell businesses. However, the real reason and the one they say to you might be 2 absolutely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competitors, current decrease in profits, or an array of other factors. This is why it is really important that you not rely totally on a seller's word, however rather, utilize the seller's answer along with your general due diligence. This will paint a more realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that earnings margins are too small. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new consumers? Often times, operating businesses have repeat consumers, which develop the core of their daily revenues. Certain aspects such as new competition sprouting up around the location, road construction, as well as personnel turnover can influence repeat clients and negatively influence future earnings. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the higher the opportunity to build a returning client base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Exactly how might the regional mean family earnings impact future revenue prospects?