Listing ID: 78877
Local woman’s fitness business that has a turnkey model with a fail proof systems. The business uses the latest technology to manage and motivate its members and is mostly absentee ownership.
The business has a regular ongoing membership and plenty of room for additional expansion. It’s located in an easy to find active plaza with other successful businesses and has little direct competition in the area.
Furniture, fixtures, and equipment is valued at over $90,000
- Asking Price: $128,500
- Cash Flow: N/A
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: $95,000
- Inventory: N/A
- 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:5
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. Nonetheless, the real factor and the one they tell you may be 2 entirely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competition, recent reduction in earnings, or a range of various other factors. This is why it is extremely vital that you not count entirely on a seller's word, yet rather, use the seller's answer together with your total due diligence. This will paint a more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that occasionally this can suggest that revenue margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that must be satisfied or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new customers? Most times, businesses have repeat clients, which form the core of their everyday earnings. Certain elements such as brand-new competition growing up around the area, roadway building, and also personnel turn over can impact repeat customers and also adversely influence future revenues. One essential point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business on a regular basis, the better the chance to construct a returning consumer base. A last idea 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 neighborhood median home earnings impact future revenue potential?