Listing ID: 77102
Owner operated smoke shop for sale in Turlock. They sell Glass pipes, grinders, vape, cigars,cd, cigarettes, kratom, gpen, and puffco. Located near Starbucks, Popeyes chicken, gas station, rite aid. Approximately 2150 sq ft with ample parking. Lease amount is $3300 which cover water, garbage, cam charges. The store is averaging between $18,000-$$20,000 a month in sales. Inventory is separated and is calculated at the close of escrow
Turlock is known as the “Heart of the Valley” because of its agricultural production.
- Asking Price: $80,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $100,000
- Inventory Included: N/A
- Established: N/A
The sale won't include inventory valued at $100,000*, which ins't included in the listing price.
The real estate is leased by the business for $3,300 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. However, the real reason and the one they tell you may be 2 entirely different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or a range of other reasons. This is why it is extremely vital that you not count absolutely on a seller's word, but instead, make use of the vendor's response combined with your general due diligence. This will repaint a more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that earnings margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations 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 suppliers that have to be fulfilled or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in brand-new clients? Many times, operating businesses have repeat clients, which form the core of their daily revenues. Particular variables such as new competition sprouting up around the area, roadway building, and also staff turnover can influence repeat customers and adversely influence future incomes. One crucial point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the opportunity to construct a returning customer base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the local mean house income influence future earnings potential?