Listing ID: 77607
MONTHLY GROSS: $25,000
MONTHLY RENT: $1,200
LEASE TERMS: 5+5+5
STORE SIZE: 1,000 SF.
OPEN HOURS: 10AM-9PM
OWNER SINCE: 2021
REASON FOR SELLING: LOOKING FOR HIGHER VOLUME STORE.
FINANCING: ALL CASH
NOTE: LOCATED IN A RESIDENTIAL AREA.
NO COMPETITION. VERY LOW RENT. SHORT OPEN HOURS.
HAS BEER WINE LICENSE. PROFIT MARGIN 35%.
POTENTIAL TO INCREASE BUSINESS.
- Asking Price: $99,000
- Cash Flow: $81,600
- Gross Revenue: $300,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $25,000
- Inventory Included: N/A
- Established: N/A
1,000 sf. located in a residential neighborhood
Seller will train
Leaving the country
Very little competition
Potential to increase business for owner-operator
The sale won't include inventory valued at $25,000*, which ins't included in the asking price.
The property is leased by the business for $1,200 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell businesses. Nevertheless, the true reason and the one they tell you may be 2 absolutely different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or an array of various other reasons. This is why it is extremely vital that you not rely entirely on a seller's word, however rather, make use of the seller's response together with your total due diligence. This will paint a more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering things like inventory, payroll, accounts payable, etc. Remember that in some cases this can imply that revenue margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new consumers? Many times, companies have repeat customers, which develop the core of their day-to-day earnings. Certain factors such as new competitors growing up around the location, roadway construction, and also personnel turnover can affect repeat consumers and also negatively affect future incomes. One essential thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning client base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the local average home income impact future earnings potential?