Business Overview

Here are the highlights:

• Strong year over year growth
• Proven business model
• Services well received by customers
• Not a franchise
• Scalable with huge potential for continued growth
• Low overhead
• Can be run part time or absentee
• Many highly satisfied and repeat clients

Financial

  • Asking Price: $250,000
  • Cash Flow: $34,108
  • Gross Revenue: $52,065
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. Nonetheless, the true reason vs the one they tell you may be 2 completely different things. As an example, they may claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a variety of various other factors. This is why it is extremely crucial that you not rely completely on a vendor's word, but instead, utilize the vendor's solution combined with your general due diligence. This will repaint a more realistic image of the business's current 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 deal. Numerous operating businesses borrow money in order to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can mean that profit margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract new customers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day revenues. Specific factors such as new competition sprouting up around the location, roadway construction, and employee turn over can impact repeat consumers and also negatively influence future revenues. One essential thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the better the possibility to construct a returning customer base. A final idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood mean home income impact future revenue prospects?