Listing ID: 77379
Listing # – 5171 TK
Boba shop/ Help Run/ Turnkey/ Full Kitchen/ Build-out $500K.
The seller purchased a huge amount of inventory to avoid product shortages and ever-rising shipping costs.
The asking price includes this huge amount of inventory!
Located inside a big shopping center with popular restaurants and shops.
Only Boba Tea shop inside or near surrounding area.
Great business opportunity.
- Asking Price: $250,000
- Cash Flow: $158,000
- Gross Revenue: $370,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $70,000
- Inventory Included: Yes
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The company was founded in 2020, making the business 2 years old.
The transaction will include inventory valued at $70,000, which is included in the requested price.
The business has 12 employees and is located in a building with disclosed square footage of 1,500 sq ft.
The property is leased by the business for $6,100 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. However, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in incomes, or a variety of various other reasons. This is why it is really crucial that you not count totally on a seller's word, however instead, make use of the vendor's solution along with your total due diligence. This will repaint a more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover points like supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that earnings margins are too tight. Many organisations come under 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 take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in brand-new clients? Many times, operating businesses have repeat consumers, which form the core of their everyday revenues. Particular factors such as brand-new competitors growing up around the area, roadway building, as well as staff turn over can affect repeat clients as well as negatively influence future earnings. One crucial point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business often, the higher the opportunity to build a returning client base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood mean family income influence future earnings potential?