Business Overview

Custom tailor and alterations business in affluent northwest Washington DC neighborhood. Wisconsin Avenue area. Manageable rent and plenty of equipment already installed. Room to hire more tailors and grow business.

Voted best tailor in Washington DC.

This shop also serves as a drop-off location for dry cleaning which is done off-site at half the price charged by this store.

Could add tuxedo rentals as a new service given proximity to both public and private high-schools.

Off street parking for owner-operator is available. Ample street parking for customers.

Financial

  • Asking Price: $120,000
  • Cash Flow: $90,000
  • Gross Revenue: $180,000
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $500
  • Inventory Included: Yes
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:900
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retiring

Additional Info

The company was established in 2012, making the business 10 years old.
The deal will include inventory valued at $500, which is included in the suggested price.

The business has 1 employees and is situated in a building with disclosed square footage of 900 sq ft.
The building is leased by the company for $4,667 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell businesses. Nevertheless, the true factor vs the one they tell you may be 2 completely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competition, current decrease in revenues, or an array of other reasons. This is why it is extremely essential that you not depend completely on a seller's word, however rather, use the vendor's solution together with your overall due diligence. This will repaint a more realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans in order to cover points like stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that revenue margins are too small. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract new consumers? Many times, companies have repeat clients, which form the core of their everyday earnings. Specific variables such as new competition growing up around the area, road building, and also staff turnover can affect repeat customers and adversely influence future incomes. One crucial thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business often, the greater the possibility to build a returning customer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? How might the regional average home income effect future revenue potential?