Listing ID: 77441
This offering is for the existing business, inventory and issued patent. The only sales channel being used currenlty is Amazon which leaves a potential buyer with tremendous upside. No distributors OR manufacturers have been approached limiting the exposure to the open market. Average gross profit per unit is $24.99 – this leaves more than enough margin to develop distribution relationaships with established sales channels.
- Asking Price: $300,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
This Business Is Home Based
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. However, the real factor and the one they say to you may be 2 entirely different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be excuses to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is extremely crucial that you not depend completely on a seller's word, but instead, utilize the seller's answer along with your overall due diligence. This will repaint a more realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money so as to cover points like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that profit margins are too small. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might 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 charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new clients? Many times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Particular elements such as brand-new competition sprouting up around the area, road building, and staff turnover can impact repeat clients and negatively impact future incomes. One essential point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business often, the greater the opportunity to construct a returning client base. A final idea is the basic area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Exactly how might the regional median family income impact future earnings potential?