Listing ID: 79078
Profitable historic hardware store available for purchase. This is a very low cost of entry into the retail space with very little franchise fees(241.15/mo.) and no royalties. This is a Co-Op franchise which gives you all the freedom and flexibility to run your business the way you want. This almost 3200 square foot well known national hardware store was fully renovated in 2019 and comes with OVER 150K in inventory, an almost new 2020 Chevy Truck, a paint machine and glass cutter. Start making money on day one. Current owner has over staffed with part time employees and only works a handful of hours. Perfect opportunity for an owner operator situation. Also, possible stock options in the overall company. This co-op franchise has a veterans program that offers huge incentives. The asking price is based off a very affordable lease, but the seller would consider selling the building that also has additional rental income and adjoining lot that was recently purchased for a possible garden center. For additional information please contact listing agent Daniel Cisz Jr at 860-329-6917 or firstname.lastname@example.org.
- Asking Price: $259,000
- Cash Flow: $22,751
- Gross Revenue: $337,347
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $154,000
- Inventory Included: Yes
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,183
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
This is a leased location of 3,183 square feet with a Total Rent of $2,500. Seller is active in the business with 6 PT employees. Hours of operation are 8-5 Mon- Fri., Sat. 8-4, Sun. 9-2, Monday - Sunday. $154,000 in Inventory and $50,000 in FF&E included in Asking Price.
The venture was established in 2019, making the business 3 years old.
The sale shall include inventory valued at $154,000, which is included in the listing price.
The company has 6 employees and resides in a building with approx. square footage of 3,183 sq ft.
The building is leased by the company for $2,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell companies. Nevertheless, the genuine factor and the one they tell you may be 2 completely different things. For instance, they might say "I have too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of various other factors. This is why it is very essential that you not count absolutely on a seller's word, but rather, use the seller's answer in conjunction with your general due diligence. This will paint a more realistic image of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover things like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that revenue margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in new consumers? Many times, operating businesses have repeat customers, which form the core of their everyday revenues. Specific factors such as brand-new competitors growing up around the area, road building and construction, as well as personnel turnover can influence repeat customers as well as adversely affect future profits. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the possibility to construct a returning client base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the regional median house income effect future earnings potential?