Listing ID: 78914
This is a full service and very busy custom sign business.
They have an excellent reputation and loyal following which most of their business comes from referrals, social media, past clients and through their website. There is certainly room to grow by reaching out into social media to help take this business to the next level. Come take a closer look at this unique opportunity in the sign industry.
- Asking Price: $170,000
- Cash Flow: $45,000
- Gross Revenue: $250,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: Yes
- 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:2
- Furniture, Fixtures and Equipment:N/A
The sale does include inventory valued at $5,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nonetheless, the genuine factor vs the one they tell you may be 2 absolutely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, recent reduction in earnings, or a range of various other reasons. This is why it is very crucial that you not rely completely on a vendor's word, but rather, use the vendor's solution combined with your overall due diligence. This will repaint a more realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that profit margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract new clients? Often times, companies have repeat consumers, which create the core of their daily profits. Particular variables such as new competition sprouting up around the location, roadway construction, and employee turnover can impact repeat clients and also adversely influence future earnings. One essential point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the greater the opportunity to develop a returning consumer base. A last idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood average household earnings effect future earnings potential?