Listing ID: 77311
Business Overview
This boutique resale store specializes in children’s clothing and other lightly used items such as strollers, blankets and toys. The business was founded in 1993 and the current owner has owned the business for the last 10+ years. There is a limitless amount of products purchased from the public and this store has been successful by only accepting quality used products and clothing and giving the store a true ‘retail’ experience but with more reasonable prices. This type of business is not subject to volatility when there are economic downturns, in fact, sales typically increase because families are looking for more affordable options. The niche served is also one of high turnover in clothing. Children outgrow clothes so quickly that the clothing sold in the store may only be worn once or twice. Other accessory products are for sale as well such as toys, strollers, books, etc.
Financial
- Asking Price: $75,000
- Cash Flow: $65,000
- Gross Revenue: $320,000
- EBITDA: N/A
- FF&E: $5,000
- Inventory: $40,000
- Inventory Included: N/A
- Established: 1993
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,100
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Excellent retail space with high foot-traffic and strong anchor grocery store in the complex as well. Other complementary stores catered to children in the complex.
Owner willing to train new owner full time, at no cost for 30 days. Current owner also willing to work for up to 6 months with compensation if desired.
Family Obligations
This resale store has fantastic customer reviews and is seen as the highest quality resale store for children's products in San Diego County and surrounding areas. Some customers make a day trip from Riverside County just to visit the store and buy and sell clothing. This is not your typical resale store.
An expanding product line in the store is the sale of price sensitive retail products. Expanding this side of the store and adding additional products may bring more traffic into the store. The supply of products is limitless, so driving more traffic into the store is the key to growth.
Additional Info
The company was established in 1993, making the business 29 years old.
The deal doesn't include inventory valued at $40,000*, which ins't included in the listing price.
The business has 6 employees and is located in a building with approx. square footage of 2,100 sq ft.
The building is leased by the business for $4,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. However, the genuine factor vs the one they say to you may be 2 entirely different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be justifications to try to hide the reality of altering demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is very crucial that you not rely totally on a vendor's word, however instead, use the seller's solution along with your overall due diligence. This will paint an extra sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that revenue margins are too small. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new clients? Often times, companies have repeat customers, which create the core of their day-to-day profits. Specific elements such as brand-new competition growing up around the location, road building, and also personnel turn over can impact repeat customers and also negatively affect future profits. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the greater the chance to develop a returning customer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Just how might the regional average family earnings effect future income prospects?
