Business Overview

• Looking for a small business; Look no further, your opportunity is here
• Great location near major signalized intersection
• Located in Strip-Shopping Center with several other businesses
• Be your own Boss. Great potential to expand and increase your Business
• Liquor Store owners looking to add another store call now
• Running as an absentee ownership – High density population
• Room to add additional sale items. Large storage space

Financial

  • Asking Price: $250,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell operating businesses. However, the real factor vs the one they tell you may be 2 entirely different things. For instance, they might claim "I have too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or an array of various other reasons. This is why it is really important that you not rely completely on a seller's word, but instead, use the seller's solution combined with your total due diligence. This will paint a more practical picture of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans so as to cover things such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that profit margins are too tight. Lots of businesses fall into 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 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 suppliers that should be met or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location attract brand-new clients? Many times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Certain factors such as brand-new competitors growing up around the location, roadway building, as well as personnel turn over can influence repeat clients as well as adversely affect future earnings. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business regularly, the higher the chance to construct a returning consumer base. A last thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? How might the regional mean house income effect future earnings prospects?