Listing ID: 78870
Seller has owned this bagel/coffee business since March 2019. 2021 average monthly sales is $29,000. The business has FF&E and inventory of $48,500. Business has enormous upside potential.
Improvements include; replaced the air conditioning unit on roof of building, new compressor in walk in fridge, new grease trap for the dish washing sink, and new commercial freezer.
- Asking Price: $149,000
- Cash Flow: $77,000
- Gross Revenue: $245,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The transaction won't include inventory valued at $5,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell businesses. Nonetheless, the true reason vs the one they say to you may be 2 absolutely different things. For instance, they may state "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competitors, recent decrease in incomes, or an array of other reasons. This is why it is very vital that you not rely entirely on a seller's word, yet rather, make use of the seller's answer along with your overall due diligence. This will paint an extra realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies take out loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that profit margins are too tight. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in brand-new clients? Often times, operating businesses have repeat customers, which form the core of their daily revenues. Particular variables such as brand-new competitors sprouting up around the area, road building and construction, and also personnel turn over can influence repeat consumers and also adversely impact future profits. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the better the chance to construct a returning customer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the local average family earnings influence future revenue prospects?