Business Overview

Established in 1981, The Classic Duck has experienced years of profitability! Originally located in Coddingtown Mall, this business currently resides in one of the most illustrious Sonoma County retail locations – the Montgomery Village Shopping Center. This beautifully curated gift store focuses on women accessories such as jewelry, scarves, and hats as well as home and garden décor, personal care products and gift items. Visiting this store during fall and winter season has become a welcomed tradition for many households due to their amazing display of Holiday gifts and accessories.

Evidenced of its popularity, this turnkey and highly profitable gift store has averaged $1.79M in annual gross sales and profiting approximately $200k per year. Growth may occur with the development of online sales. Owner works approximately 30 hours a week in peak Holiday season and 20 hours a week for the rest of the year. Inventory fluctuates at a wholesale value between $200k – $500k, is not included in the listed price, and shall be purchased by the Buyer at an additional cost.

*Four-year average of 2017-2019 and 2021. 2020 was greatly impacted by the pandemic and shutdowns and is NOT represented in these averages.

Financial

  • Asking Price: $249,000
  • Cash Flow: $212,000
  • Gross Revenue: $1,790,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1981

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,528
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Percentage rent is at 7%. A new owner will likely need to negotiate a new, long-term lease with base rent.

Is Support & Training Included:

Seller is willing to stay on as a purchaser for the store. Details such as hours worked and compensation to be negotiated.

Purpose For Selling:

After years of success, owner is retiring.

Additional Info

The venture was founded in 1981, making the business 41 years old.

The building is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell businesses. Nonetheless, the genuine reason vs the one they tell you may be 2 entirely different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or an array of other factors. This is why it is really vital that you not count absolutely on a vendor's word, yet instead, make use of the vendor's solution along with your total due diligence. This will repaint a more sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can indicate that profit margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that have to be met or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in new customers? Most times, companies have repeat customers, which create the core of their daily revenues. Certain factors such as new competitors sprouting up around the area, road construction, and also employee turn over can affect repeat consumers as well as adversely influence future earnings. One important thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the higher the chance to build a returning consumer base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood median household earnings effect future earnings potential?