Listing ID: 78512
Proprietary blend organic pesticide, insecticide and fungicide product and online sales platform. Distributor of organic fertilizer as well. Can be owned and managed from anywhere. OMRI has listed this business’s product as authorized for use in certified organic food production according to the USDA National Organic Program regulations. This listing should open up tremendous growth opportunities.
Huge upside for a buyer with strong merchandizing abilities, particularly in the agricultural products space. Note that advertised profits are on first year gross-profits basis – please inquire for more details. The potential of this product and business have not yet been properly tapped.
- Asking Price: $450,000
- Cash Flow: $180,313
- Gross Revenue: $209,486
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The company was started in 2019, making the business 3 years old.
The deal shall not include inventory valued at $5,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 absolutely different things. For instance, they may state "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is extremely crucial that you not rely totally on a seller's word, but rather, utilize the seller's response combined with your total due diligence. This will paint an extra reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover items like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that revenue margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new consumers? Often times, operating businesses have repeat clients, which form the core of their daily revenues. Specific factors such as brand-new competitors growing up around the location, road building, as well as employee turn over can influence repeat consumers as well as adversely influence future profits. One essential thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to build a returning client base. A last thought is the basic area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? How might the regional mean house earnings impact future revenue potential?