Listing ID: 76544
This 20-year-old company is a home-office-based and relocatable, high-profit sales and service company specializing in the Colorado ski area market around the current home of the seller in Avon, Colorado.
Specifically, it is a highly seasonal independent distributor and rack-jobber of promotional products and souvenirs.
Gift shops sell souvenirs and this company supplies and maintains the shelves of the products the gift shop buys from them. It’s a very simple model and is called “rack-jobbing.” It works because keeping and maintaining seasonal gift store inventory is too hard for a gift shop owner or manager to want to do for themselves.
The other half of the business is promotional products sales for special events. When a festival occurs, for example, that festival organizer may need some giveaways or items to sell that promote the festival. That’s what a “promotional product” is. Many businesses also do special promotions of all kinds that create a demand for this company’s services.
This business is a recognized ASI Distributor of Promotional Products. ASI is the Advertising Specialties Institute. A new owner can be fully educated in this part of the business by taking ASI courses after receiving the current owner’s training in the transition of the business.
The company owner is basically a solo-practitioner and primarily serves the ski area gift shops of the central Colorado mountains, mostly along or near Interstate 70, as well as other accounts. His active period is from November through March.
This is an ideal business for someone who wishes to make a year’s income in five months. Working a “flex-time” Colorado ski country lifestyle in and around its beautiful ski resorts, a new owner can then take off from May through October. Or a new owner can expand the company and serve summer gift shops as well.
After two decades of living in Avon, the owner now wishes to move closer to family in another state. Sale terms will be made flexible depending upon the time of year the business is purchased. Cash flow differs significantly from season to season.
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- Asking Price: $395,000
- Cash Flow: $145,000
- Gross Revenue: $375,000
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $35,000
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Home-Based Business. Small Amount of Storage Needed (Home Based)
Seller will be available to train and assist new owner as needed.
Owner is moving out-of-state, will sign non-compete for Colorado.
There are few competitors in this niche market in the mountains and rural areas. Most competitors are in large metro areas where they only sell the more profitable promotional products on an entirely different scale that employs hundreds. This business owner can make a significant income and enjoy a ski-season-only workstyle in Colorado’s high country without having to employ anybody because he has developed a concentrated niche market.
After 20 years, the seller has stabilized his income and workstyle at the levels he enjoys. That gives him a 5-month calendar (November – March) where he can take off the rest of the year. A new owner working full-time could pick up the summer market and easily double the sales volume in one year!
This Business Is Home Based
The company was started in 1999, making the business 23 years old.
The deal won't include inventory valued at $35,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. However, the real reason vs the one they tell you may be 2 absolutely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might just be justifications to try to hide the reality of altering demographics, increased competitors, current decrease in earnings, or a range of various other factors. This is why it is extremely vital that you not count absolutely on a vendor's word, however instead, make use of the vendor's solution in conjunction with your general due diligence. This will repaint an extra reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that revenue margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new clients? Many times, businesses have repeat clients, which form the core of their daily earnings. Particular factors such as new competitors sprouting up around the area, roadway building, as well as personnel turn over can affect repeat customers as well as negatively influence future earnings. One essential point to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Just how might the local average family income effect future earnings prospects?