Listing ID: 75123
Friendly neighborhood restaurant with home cooking that everyone loves. The SQ is 1300 with a music stand for karaoke. When the music starts all involved and sing along. It reminds most people of being in their living room at home.
- Asking Price: $170,000
- Cash Flow: $108,000
- Gross Revenue: $265,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $10,000
- Inventory Included: N/A
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,300
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
1300 SQ and 35 seats
They are in process of getting a Liquor License
The business was founded in 2020, making the business 2 years old.
The transaction shall not include inventory valued at $10,000*, which ins't included in the requested price.
The business has 2 PT employees and resides in a building with disclosed square footage of 1,300 sq ft.
The building is leased by the business for $7,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell companies. Nonetheless, the true factor and the one they say to you might be 2 completely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may simply be reasons to try to hide the reality of transforming demographics, increased competitors, current reduction in profits, or an array of various other reasons. This is why it is very vital that you not count totally on a vendor's word, however instead, make use of the vendor's answer together with your general due diligence. This will paint an extra practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses borrow money so as to cover items such as stock, payroll, accounts payable, etc. Remember that occasionally this can imply that earnings margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new customers? Most times, operating businesses have repeat consumers, which develop the core of their daily revenues. Certain factors such as brand-new competitors growing up around the area, road building and construction, and personnel turn over can affect repeat consumers and also negatively influence future profits. One crucial thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business often, the greater the chance to develop a returning customer base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the local mean home earnings influence future earnings potential?