Listing ID: 77421
Listing # – 5146 NK
Pizza to go located in huge planned apartment complex.
There are 750 apartments in the same building as the business plus many more surrounding.
This business is perfect for delivery and pick up of pizza.
There are no other food businesses in this building.
Nike has just signed a new lease with the office building next door within walking distance to the business.
High income, high tech area in Silicon Beach & Loyola University nearby.
Major Expense: rent- 4850, food cost-30%-14,000, utilities-1500, labor-12,500, insurance-100.
- Asking Price: $199,000
- Cash Flow: $90,000
- Gross Revenue: $560,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: 1994
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The venture was started in 1994, making the business 28 years old.
The deal shall not include inventory valued at $5,000*, which ins't included in the asking price.
The company has 6 employees and is situated in a building with disclosed square footage of 1,200 sq ft.
The building is leased by the business for $4,850 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell businesses. Nonetheless, the true factor and the one they tell you may be 2 completely different things. For instance, they might say "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be reasons to attempt to conceal the reality of altering demographics, increased competition, recent decrease in incomes, or an array of various other factors. This is why it is very essential that you not depend totally on a seller's word, yet instead, use the seller's solution combined with your general due diligence. This will repaint a much more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that revenue margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in new customers? Most times, businesses have repeat clients, which form the core of their everyday profits. Particular aspects such as new competitors sprouting up around the area, roadway building and construction, as well as personnel turnover can impact repeat clients and negatively influence future earnings. One vital point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the better the possibility to build a returning customer base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Exactly how might the local median home earnings impact future income potential?