Listing ID: 76649
Touted as one of the top 15 design firms in the state of Colorado, this 30 year interior design company founded in 1991 began humbly as a home based business offering window treatments. Today it stands out as one of the premiere design companies in the area. The owner recognized the need for quality design services and began offering a full array of services for new construction and renovation. Among the offerings are full service interior design including but not limited to full project management from planning to execution of the initial design to final installation of interior and exterior finish selections, space planning, lighting design,color schemes, high-end bedding , custom draperies and Hunter Douglas window treatments. Whole house turn-key furnishing packages and finish accessories are the biggest portion of revenue with the highest profit margin.
Exemplary service, outstanding communication, and exceptional organization have brought this company to the very top of the design standards. A new owner can count on a strong history of clients, ongoing referrals, and robust marketing platform which includes google ad words.
All key systems and software are in place to transition a new owner into immediate success.
- Asking Price: $295,000
- Cash Flow: $227,000
- Gross Revenue: $686,000
- EBITDA: $227,000
- FF&E: $10,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1991
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The office is ideally located in an upscale, beautifully remodeled multi-use building that contains a full-time receptionist and a well appointed receptions area. The building offers many amenities including 4 spacious conference rooms, a mail room with a high end copy-print-scanner, a full kitchen, and public restrooms. Most of the building is occupied by Realtors giving great exposure to potential clients. Furniture and accessories are staged in a warehouse in a neighboring town until final delivery. The owner currently leases a private office month to month.
After close of escrow, Seller will provide up to 10 weeks of training at 30 hours per week, then consultation via phone, text, and email for an additional 10 weeks. Owner will ensure a healthy transition to the client base.
Owner is retiring.
This interior design business is one of about 5 significant design companies in the area. Only one other can attest to the longevity of this one and has attained a different niche in the market place. The area is realizing tremendous growth. Because of the desirability of the area it is projected the population will double by 2050. The demographics include professionals, wealthy retirees, and high-income earning young families. At one time, the major fold of clients were retirees but today a broad range of clients are serviced by this design company. Little competition exists as there is a high demand for interior designers in this robustly growing area.
While the current owner has operated with junior designers and project managers it can be maintained as it is today by a sole proprietor. However, the area is in need of interior designers and this company could realize exponential growth with the addition of a marketing specialist, a junior designer, and a project manager. These positions could be part time to begin and work into full time as the company grows. This longstanding interior design company is looking for an energetic designer to take it to the next level.
The business was established in 1991, making the business 31 years old.
The business has 0 employees and is situated in a building with approx. square footage of N/A sq ft.
The property is leased by the business for $627.13 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nevertheless, the genuine reason and the one they say to you might be 2 absolutely different things. For instance, they may claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or a range of other reasons. This is why it is very crucial that you not depend completely on a vendor's word, but rather, make use of the vendor's solution along with your overall due diligence. This will repaint an extra reasonable picture 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 certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover points like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new consumers? Many times, operating businesses have repeat consumers, which create the core of their everyday revenues. Particular factors such as new competition growing up around the location, roadway building, and personnel turnover can impact repeat customers as well as negatively affect future profits. One vital point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the opportunity to develop a returning customer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Just how might the neighborhood median family earnings impact future income prospects?