Listing ID: 77389
This business is a new-concept art gallery designed give artists the opportunity to exhibit their work in a professional setting, and those that appreciate art the ability to purchase and collect great art in the process. It is located in a highly sought after and historic location that draws highly affluent clientele as well as celebrity foot traffic. This new-concept gallery offers collectors the opportunity to discover new artists that would not otherwise be represented in regular commercial galleries. Other art galleries have such high overhead that they simply cannot afford to take an unproven artist on – leaving a huge market of excellent yet unrepresented artists hungry for sales and exposure! This is the market that this gallery serves. Each artist pays monthly, agreeing to at least a minimum 3-month term, creating enough income to cover all expenses and put money into the pockets of the Owner – before selling a single work of art. In exchange for the monthly stipend, this gallery supplies the artists with a prestigious venue to show their work, exposure on their websites and social media as well as represent them to designers and decorators. And there is tremendous potential for growth, both with finding artists (the business currently has 10 artists on their waiting list), as well as in the potential for sales to their affluent clientele. So, if you are passionate about the arts, excited about the opportunity to support local artists, comfortable dealing with high-net-worth clients, and don’t mind making money – this is an opportunity of a lifetime! It also includes $100,000 in inventory in the sale price.
- Asking Price: $399,000
- Cash Flow: $239,869
- Gross Revenue: $680,000
- EBITDA: N/A
- FF&E: $16,500
- Inventory: $100,000
- Inventory Included: Yes
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
This business has a leased location of 2,500 square feet with a total monthly rent of $4,500. The business is with 1 Full-time employee, 1 Part-time employee and 1 Independent contractor. Hours of operation 12:00pm-5:00pm (7:00pm), Wednesdays-Sundays. Included in asking price are $100,000 Inventory and $16,500 Equipment and Fixtures.
Moving out of state
The venture was founded in 2019, making the business 3 years old.
The deal shall include inventory valued at $100,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the true reason and the one they say to you may be 2 completely different things. For instance, they may say "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, recent reduction in revenues, or a variety of various other reasons. This is why it is very crucial that you not depend entirely on a vendor's word, but rather, make use of the seller's response in conjunction with your overall due diligence. This will repaint an extra sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that profit margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new consumers? Often times, businesses have repeat clients, which develop the core of their day-to-day revenues. Certain variables such as new competition sprouting up around the location, road construction, as well as personnel turn over can influence repeat consumers and adversely impact future incomes. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the better the chance to develop a returning consumer base. A final thought is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the regional median home income influence future earnings prospects?