Listing ID: 78926
PRICE REDUCED! This is a turnkey full-service flooring business with 22% to 24% profit margins and consistent sales over $500,000 even with the recent Covid-19 effect on all our lives. Sales for 2021 came in at $692,226 with multiple orders that will be available to a new owner. The business is suitable for an independent individual entrepreneur who wants to control his or her business life, partnership, couple or other flooring store owner looking to increase their market share.
Sales come from a mix of residential and commercial customers and consists of all flooring types. Most of the sales involve material purchase and product installation. Installations are provided by a group of subcontractors that have long term relationships with the business.
The business relies on word-of-mouth referrals. A formal marketing plan is not part of the present business model and is an opportunity for a new owner to grow the business.
The business is located on a well-traveled state roadway with high traffic counts and good visibility. The showroom is open five days per week.
The business with an in-place lease, high traffic location with customer display area, storage racks and loading dock, $20,000 worth of furniture, fixtures and equipment, sundry inventory and supplies, good will, non-compete agreement, extensive training, if needed, during the transition to a new ownership, introduction to suppliers and vendors and installation sub-contractors are available at an offering price of $169,000.
- Asking Price: $169,000
- Cash Flow: $64,150
- Gross Revenue: $692,226
- EBITDA: N/A
- FF&E: $20,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Support and training during the transition is available.
The business was founded in 1993, making the business 29 years old.
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. However, the genuine factor vs the one they tell you might be 2 entirely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be justifications to attempt to hide the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of various other reasons. This is why it is really important that you not rely completely on a seller's word, but instead, make use of the vendor's response combined with your overall due diligence. This will repaint an extra reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover things such as supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can indicate that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new clients? Often times, companies have repeat customers, which create the core of their daily revenues. Particular factors such as brand-new competition sprouting up around the location, road construction, and personnel turnover can impact repeat consumers and also negatively influence future incomes. One important thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the greater the chance to develop a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it located on the edge of town? Just how might the neighborhood average family earnings impact future income potential?