Listing ID: 77518
This successful French Bakery is located in a busy, neighborhood on a corner of a popular downtown destination. Locals visit the bakery for their delicious French made pastries and coffee. Known for its 5-Star Yelp rating, the bakery has many loyal customers. The owners do not spend on advertising or marketing. With advertising and marketing, a new owner can grow this business. A pastry chef from France makes the croissants, brioche and other authentic pastries. Store comes with newer bakery equipment such as: kneader, freezer, ovens, planetary mixer, refrigerators, dough sheeter, pastochef and proofer. Average daily sales are $2,000, with some weekends hitting sales of $3,500-$4,000
- Asking Price: $275,000
- Cash Flow: $160,563
- Gross Revenue: $507,917
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The sale will include inventory valued at $5,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell companies. Nonetheless, the true factor vs the one they tell you might be 2 totally different things. As an example, they might claim "I have too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competition, recent decrease in incomes, or a variety of other reasons. This is why it is very vital that you not rely totally on a vendor's word, but instead, use the vendor's solution combined with your total due diligence. This will paint a much more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering points like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that revenue margins are too small. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new consumers? Most times, businesses have repeat customers, which form the core of their daily revenues. Particular variables such as new competition sprouting up around the area, roadway building, and also personnel turnover can influence repeat clients as well as negatively impact future earnings. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to build a returning client base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood median household income influence future income prospects?