Listing ID: 78781
This seasonal lake-side business has been operating for almost 100 years and is one of a few shore-front businesses with boat up access. The business sells a wide range of hot and cold foods, and has a full ice cream bar operation. With this lifestyle business you can spend your days at the water’s edge instead of being stuck inside all day. This is a fun seasonal business that can be run by a single individual or a couple. The business has water frontage with a seasonal dock that can accommodate up to 8 boats.
- Asking Price: $749,000
- Cash Flow: $100,000
- Gross Revenue: $400,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $1,500
- Inventory Included: Yes
- Established: 1920
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The building is fully equipped for take-out. It has a large parking lot and a dock system that can accommodate half a dozen boats.
Seller with assist with transition and training for a new owner.
The business is located in a popular summer vacation area. Its reputation has made it a destination as well as a convenient stop for local residents and vacationers.
The business enjoys consistent sales year after year, but a new owner can increase revenue in several areas. There is opportunity to expand hours, add new menu items and even expand into beer, wine or cocktails to be served on the patio.
The venture was started in 1920, making the business 102 years old.
The sale does include inventory valued at $1,500, which is included in the listing price.
The business has 5 FT / 10 PT employees and is situated in a building with estimated square footage of 5,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell companies. Nevertheless, the true reason vs the one they say to you might be 2 absolutely different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might just be justifications to attempt to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of other reasons. This is why it is extremely vital that you not count completely on a seller's word, however instead, make use of the seller's answer together with your overall due diligence. This will repaint a much more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover items like inventory, payroll, accounts payable, etc. Remember that occasionally this can imply that earnings margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that need to be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new clients? Most times, companies have repeat clients, which form the core of their day-to-day earnings. Particular elements such as new competition sprouting up around the location, road building and construction, and staff turn over can influence repeat clients and also adversely affect future incomes. One essential point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the greater the possibility to develop a returning customer base. A last idea is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Just how might the regional typical home earnings influence future income potential?