Listing ID: 77324
One of the Sellers so enjoyed the sport of shooting, he opened this gun shop in 2011 believing he could make a good living and create opportunities to teach gun safety.
The store now represents more than 25 firearms manufacturers and offers concealed weapons permit classes and full firearm training. They are an authorized dealer for Henry, Smith & Wesson, Glock, and Sig Sauer. Three Certified Firearms Instructors work with the shop to provide flexible class schedules. Inventory generally includes less than 200 firearms along with ammunition and accessories (like special conceal-carry purses for the growing number of women gun owners.)
Over the past two years, sales have nearly doubled. Part of the increase was due to high demand, both in the store and at four gun shows they regularly attend on weekends. However, a noticeable uptick in repeat business can also be attributed in part to the hiring of a key employee.
NDA is required to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
- Asking Price: $650,000
- Cash Flow: $181,000
- Gross Revenue: $700,000
- EBITDA: N/A
- FF&E: $43,000
- Inventory: $170,000
- Inventory Included: Yes
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Located in a small strip mall, the 1,100 sq. ft. space rents for $1,175 per month. The rent is expected to increase in February. There is good signage and good foot traffic at this location. The only reason to move the established shop would be if the space was large enough for a gun range.
To ensure a smooth transition and ongoing success the Sellers will work with a buyer for at least 30 days or as negotiated.
The couple is looking to semi-retire.
There are few other privately run shops in the area. The primary competition comes from big-box stores and online retailers. Increasing web presence will help with that.
To increase sales, revenue, and its positive reputation, the Sellers recommend offering more training and concealed weapons classes, bringing on additional LEO and security guard type items and making efforts to connect more with the local outdoor range for training opportunities.
The venture was founded in 2011, making the business 11 years old.
The deal shall include inventory valued at $170,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell companies. However, the true factor vs the one they tell you might be 2 totally different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competitors, recent reduction in profits, or an array of other factors. This is why it is very crucial that you not count entirely on a vendor's word, but rather, make use of the seller's solution in conjunction with your total due diligence. This will repaint a much more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering things like stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that earnings margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that should be met or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in brand-new customers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day profits. Certain elements such as brand-new competition growing up around the location, roadway building and construction, as well as employee turn over can influence repeat clients as well as adversely impact future earnings. One vital thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the higher the chance to develop a returning customer base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional mean family income influence future income potential?