Listing ID: 78582
Please Read Carefully – Serious Interest Only
Independent Non-Franchise Dollar Store Concept:
There currently two employees that allow the owners to work other jobs. The gross income is around $100,000 with a net income between $15,000 – $23,000 depending on payroll, and expenses for items such as internet and phones. The Point-of-Sale System is owned by the store.
An owner-operator could net closer to $23,000 due to the lower payroll.
The Sellers are willing to do a partial sale and partner with a qualified person.
The Sellers are also willing to sell 100% of the store for $65,000, cash only. The Sellers are firm on price and are not open to seller financing.
The Sellers are working on business development opportunities to improve the bottom line with more food and cleaning items available. They are also working to improve advertising and signage.
There is time left on the current lease to transfer to a new owner. The lease amount is about $4,400 per month for about 1600 square feet of retail space.
- Asking Price: $65,000
- Cash Flow: $20,000
- Gross Revenue: $111,500
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $4,000
- Inventory Included: N/A
- Established: 2018
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The business was started in 2018, making the business 4 years old.
The transaction shall not include inventory valued at $4,000*, which ins't included in the listing price.
The company has 3 employees and is situated in a building with disclosed square footage of 1,600 sq ft.
The property is leased by the company for $4,400 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell operating businesses. Nevertheless, the genuine reason and the one they tell you may be 2 totally different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be reasons to try to hide the reality of transforming demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is extremely important that you not rely entirely on a seller's word, but instead, utilize the vendor's solution combined with your general due diligence. This will paint a much more realistic image of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover points like inventory, payroll, accounts payable, etc. Remember that in some cases this can indicate that revenue margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that must be met or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new consumers? Often times, companies have repeat clients, which create the core of their day-to-day profits. Particular variables such as brand-new competition sprouting up around the area, road building, as well as personnel turn over can influence repeat customers as well as adversely influence future incomes. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the greater the possibility to construct a returning customer base. A last thought is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local typical home earnings influence future earnings prospects?