Listing ID: 74963
Convenience Market and Smoke Shop on Major Cross Streets available in Phoenix! Seller advises this business type is approved for E2 Visa. Very Large Store with ability to Add Hot Food and Check Cashing. Partnership with Thrifty Ice Cream. Loyal Customer Base. High Margin Items. Located in a Residential Area, near Schools. Inventory includes High Margin Items and assorted Grocery, Beer, Wine, Tobacco and Smoke. Electric Vehicle Charger site approved. For more information, please contact seller’s agent Vinni Sapra via text/call to (480)227-3184 or email to Vinni@wcibroker.com.
- Asking Price: $275,000
- Cash Flow: $140,220
- Gross Revenue: $600,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $60,000
- Inventory Included: N/A
- Established: 1982
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,800
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The company was started in 1982, making the business 40 years old.
The transaction won't include inventory valued at $60,000*, which ins't included in the listing price.
The company has 3 employees and is situated in a building with estimated square footage of 3,800 sq ft.
The building is leased by the company for $3,900 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell businesses. Nonetheless, the genuine factor vs the one they say to you may be 2 totally different things. As an example, they may say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competitors, current decrease in revenues, or an array of various other factors. This is why it is really vital that you not depend completely on a vendor's word, but instead, make use of the vendor's response combined with your overall due diligence. This will paint a much more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies borrow money in order to cover things like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that earnings margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new customers? Many times, operating businesses have repeat clients, which form the core of their day-to-day revenues. Particular variables such as new competition sprouting up around the area, road construction, and staff turnover can impact repeat consumers and negatively affect future revenues. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A final thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the local typical household earnings influence future revenue prospects?