Listing ID: 77595

Business Overview

MONTHLY GROSS: $38,500
MONTHLY RENT: $4,179
LEASE TERMS: 5 YRS. (Additional 5 years negotiable)
STORE SIZE: 1,454 SF
OPEN HOURS: 9AM-9PM
EMPLOYEES: OWNERS
EXTRA INCOME: LOTTERY $1,000, ATM $25
OWNER SINCE: 2012
REASON FOR SELLING: LONG COMMUTE (80 MILES AWAY)
FINANCING: 50% DOWN 50% BANK LOAN.
NOTE: NICE LOCATION NEXT TO STARBUCKS.
50% WHITE AND 50% LATINO CUSTOMERS.
POTENTIAL TO INCREASE BUSINESS BY INCREASING
OPEN HOURS AND ADDING MORE INVENTORY.
NOT MUCH COMPETITION.

Financial

  • Asking Price: $149,000
  • Cash Flow: $54,000
  • Gross Revenue: $462,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $75,000
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

Located inside a busy shopping center with plenty of parking

Is Support & Training Included:

Seller will train

Purpose For Selling:

Long commute forces sale.

Pros and Cons:

Not much competition.

Opportunities and Growth:

Potential to increase business with longer hours and more inventory.

Additional Info

The transaction shall not include inventory valued at $75,000*, which ins't included in the asking price.

The property is leased by the company for $4,179 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell operating businesses. Nonetheless, the real reason vs the one they tell you might be 2 absolutely different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be justifications to try to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or a range of various other reasons. This is why it is very crucial that you not rely absolutely on a seller's word, yet rather, utilize the seller's response together with your general due diligence. This will paint an extra realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover points such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that have to be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in new customers? Often times, operating businesses have repeat clients, which develop the core of their everyday profits. Particular factors such as new competitors growing up around the location, roadway building, and personnel turn over can affect repeat customers and also negatively impact future earnings. One important point to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the chance to build a returning consumer base. A last thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Just how might the local median house earnings influence future revenue prospects?