Listing ID: 78862
Very popular local ice cream shop that also serves food. Located on a busy road and has been a staple of the community for over 25 years at this location. Open from April 1st through September 19th.
- Asking Price: $85,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. Nonetheless, the real reason vs the one they tell you may be 2 completely different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of various other factors. This is why it is really crucial that you not rely absolutely on a vendor's word, however rather, use the seller's response in conjunction with your overall due diligence. This will repaint an extra practical image of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering things like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that earnings margins are too thin. Lots of businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new clients? Often times, operating businesses have repeat customers, which develop the core of their daily revenues. Certain variables such as new competitors sprouting up around the location, road construction, and personnel turnover can impact repeat consumers as well as negatively impact future profits. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the greater the possibility to construct a returning customer base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the edge of town? Exactly how might the local median house income influence future revenue potential?