Business Overview

Seasonal full-service ski shop offering clothing, equipment and accessories for downhill ski, cross country ski, and snowboard, in addition to downhill ski, cross country ski, and snowboard rentals and tuning/ back shop repair service for all equipment. The business was founded in 1989 and is located in SW Colorado near one of the state’s premier ski resorts. The business is open seasonally, typically the beginning of November until April 15th, and operates from 7:30 AM- 6PM 7 days a week with 6 employees and 1 full-time working owner out of a 3950 sf facility.

Financial

  • Asking Price: $750,000
  • Cash Flow: $247,872
  • Gross Revenue: $498,310
  • EBITDA: N/A
  • FF&E: $48,850
  • Inventory: $203,000
  • Inventory Included: Yes
  • Established: 1989

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,950
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company’s physical location was built in 2005 is well maintained and in excellent condition. The facility is located in a shopping center with very good visibility and consists of approximately 3950 square feet that houses a small office, retail area, rental gear, a workshop, a separate fitting room, and rental storage. There is a shared kitchen and bathroom in the common space. There is also a paved parking area with abundant parking. The facility has easy access, good visibility, and is operated seasonally, typically November to mid-April, 7 days a week from 7:30AM to 6:00PM. The Real Estate is owned by the seller who has indicated a willingness to enter into a lease agreement with the Buyer at $3,000.00 per month.

Additional Info

The venture was started in 1989, making the business 33 years old.
The deal shall include inventory valued at $203,000, which is included in the asking price.

The business has 6 employees and is located in a building with approx. square footage of 3,950 sq ft.
The property is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. Nevertheless, the true factor and the one they say to you might be 2 completely different things. As an example, they might claim "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be excuses to try to hide the reality of altering demographics, increased competition, recent decrease in profits, or an array of various other reasons. This is why it is really important that you not count absolutely on a vendor's word, yet instead, use the seller's answer combined with your overall due diligence. This will paint a more reasonable image of the business's existing scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that earnings margins are too tight. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in brand-new customers? Many times, operating businesses have repeat customers, which develop the core of their day-to-day profits. Particular factors such as brand-new competitors growing up around the area, road construction, and personnel turn over can affect repeat consumers as well as negatively affect future revenues. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the greater the opportunity to construct a returning client base. A last idea is the basic area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? How might the neighborhood average family income effect future revenue prospects?