Listing ID: 76679
This is a full line retail and wholesale bakery. The made from scratch, in-store prepped and baked products include assorted breads and rolls, cookies, cakes and cupcakes, muffins, donuts, pies and a full array of pastries. Seasonal products are crafted for holiday enjoyment, as well as custom ordered cakes and cookies. All products are fresh and hand made, and not prepared from frozen or outsourced ingredients. As an Ionic Landmark for seventy-three years, this locally owned, family run Business focuses on quality and freshness. Nearly 75% of the customer base is walk-in business and bakery services various local restaurants and businesses with assorted pastries, breads, and rolls. The customer base includes people from the Western Slope of Colorado and Eastern Utah. The current owners have run this operation for forty five years and are now ready to retire.
- Asking Price: $330,000
- Cash Flow: $125,000
- Gross Revenue: $750,000
- EBITDA: $125,000
- FF&E: $100,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1972
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
The business occupies a 2976 sq ft building, built in 1972, and is located a very short distance from a main thoroughfare through town. There is ample parking available for customers and deliveries.
Seller agrees to provide training 8 for weeks at 30 hours per week following close of escrow. The seller will provide consultation by phone, email and text for an additional 8 weeks.
There is very limited competition in the area which produces fresh made, crafted on premises, baked goods. Chain supermarkets, convenience stores, and bagel type businesses are the only competition. Although their locations may provide more convenience, product selection is very limited and rarely crafted in-store.
This Business maintains a solid customer following with many generations of families continuing to patronize the bakery. The business currently utilizes all of the square footage in the preparation and retail areas of its location. Expansion might include a larger social media presence and an over the air advertising campaign.
The business was started in 1972, making the business 50 years old.
The sale shall include inventory valued at $10,000, which is included in the requested price.
The company has 15 employees and resides in a building with disclosed square footage of 3,000 sq ft.
The real estate is leased by the company for $2,166.67 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nonetheless, the real reason vs the one they say to you might be 2 absolutely different things. As an example, they might say "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in profits, or an array of various other factors. This is why it is really crucial that you not count completely on a vendor's word, yet instead, use the seller's response combined with your total due diligence. This will repaint a much more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover points like inventory, payroll, accounts payable, and so on. Remember that in some cases this can mean that earnings margins are too tight. Numerous companies fall 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 commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be met or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new clients? Often times, operating businesses have repeat consumers, which form the core of their daily profits. Specific elements such as brand-new competitors growing up around the area, roadway construction, and employee turn over can impact repeat consumers and negatively affect future profits. One essential point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the higher the possibility to develop a returning client base. A last idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? How might the neighborhood average home income effect future income potential?