Business Overview

Window Tint, located inside Busy Car Wash. $2,800 per month, $20,000 included the Tint equipment
Smog Shop space available $3,000 per month
Both Shops for $5,000 per month

Financial

  • Asking Price: $20,000
  • 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 types of reasons why individuals decide to sell operating businesses. Nonetheless, the real reason vs the one they say to you might be 2 entirely different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competitors, recent decrease in profits, or an array of various other factors. This is why it is extremely crucial that you not depend entirely on a seller's word, yet rather, use the vendor's solution together with your total due diligence. This will repaint an extra sensible picture of the business's current scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money in order to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that profit margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be met or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location attract new clients? Often times, companies have repeat customers, which create the core of their day-to-day revenues. Particular factors such as new competitors sprouting up around the location, road building and construction, and also employee turnover can influence repeat clients and also adversely impact future revenues. One vital point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the greater the opportunity to build a returning client base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the neighborhood average family earnings effect future income potential?