Business Overview

This is a great opportunity to acquire a very nicely appointed, neatly kept dog grooming business, with low overhead and “like new” equipment. Business opened at the end of March 2018, with brand new equipment, including grooming table, tools, washing stations, kennels and drying tables. Space was renovated nicely in a very colorful style, to be perfectly suited for the dog grooming and wash business. Rent is very reasonable and the location is easily accessible; conveniently located near a well-established residential area and a bustling commercial center that includes a supermarket.

Seller is the only groomer, but there is room for an additional groomer or two if desired. The current owner started grooming as a hobby and, as her reputation grew, it became a successful business. She has acquired hundreds of customers, and would love to have these dogs taken care of by another groomer who can choose to grow the business while caring for the customer base already established.

The business is open just four days a week, from 10:00 to 5:00, and almost all grooming and washes are scheduled by appointment only. If desired, a new owner could potentially grow the business by 25% just by being open five days per week. Financials for 2020 represent less than 11 months of results, as the business shut down due to the Covid pandemic for about five weeks. If you adjust for that shut down, sales would likely have exceed $56,000 and cash flow would likely have exceeded $40,000.

Seller has decided to sell, due to having relocated her personal residence, and will help transfer the business to a new owner. She is very well organized and her well-kept records and system will simplify the transition.

Founded and opened by current owner in March 2018.

One of very few commercial dog grooming businesses in the area.

The business has ample room for growth, by being open more hours and/or hiring an additional groomer.

Financial

  • Asking Price: $59,000
  • Cash Flow: $35,653
  • Gross Revenue: $50,876
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

owner relocated

Additional Info

The real estate is leased by the company for $661 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. Nonetheless, the true factor vs the one they say to you might be 2 completely different things. As an example, they may state "I have way too many other obligations" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competition, current reduction in earnings, or an array of various other factors. This is why it is very essential that you not depend completely on a vendor's word, however rather, make use of the seller's answer combined with your general due diligence. This will repaint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses borrow money in order to cover things like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that profit margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be fulfilled or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract new consumers? Most times, companies have repeat customers, which create the core of their day-to-day earnings. Particular elements such as brand-new competitors sprouting up around the location, roadway construction, and also staff turn over can impact repeat consumers and negatively affect future incomes. One vital thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the higher the opportunity to develop a returning customer base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood average home income impact future earnings prospects?