Listing ID: 79100
Motivated Seller just lowered the price to sell in 2022! This business has proudly served the southern New Hampshire community for over 50 years, offering an extensive selection of trophies, plaques, medals, granite items, and ribbons. They also carry a complete line of corporate, sports and academic awards, ceremonial items, business recognition awards, and executive gifts of all types. All products can be personalized to a customer’s specifications. Also offered are engraving, bronzing, plaque laminating, and embedding custom medallions, pins, and challenge coin services.
For decades, trophy shops have been staples of local small business communities. Like many businesses, today’s trophy shops have adapted to the times and incorporated technological innovations into their core business activities. In the past, trophy shop products were limited to plaques, medals and personalized figurine trophies. Today, laser engraving has transformed the industry, making it possible to efficiently customize materials like crystal, marble, glass, wood and composites.
Another technological development that has taken the awards industry by storm is online marketing. Aggressive and profitable trophy shops now have the ability to take customer orders online, allowing them to expand their reach and serve awards customers outside of their immediate vicinity. This certainly proved beneficial through the realities of COVID.
- Asking Price: $179,900
- Cash Flow: $80,980
- Gross Revenue: $287,660
- EBITDA: N/A
- FF&E: $76,850
- Inventory: $40,000
- Inventory Included: Yes
- Established: 1969
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The leased space is a corner, storefront location, for a total of 1600 square feet plus basement storage. Rent is $2400 per month, including heat. AC, water, and electricity. Ample parking is available in front of the store and all along the street. The lease also includes two dedicated parking spaces in the private lot at the rear of the business. The store is housed in a professional, well maintained, accessible sunlit shop providing ample production, customer service, office, and storage facilities. All furniture, fixtures, and equipment are in good to excellent condition. The space itself is clean, well maintained, comfortable, and appealing to customers.
The current owner is willing to stay on and train for two weeks after the transfer of the business at no charge and may be available on a consulting basis beyond the two weeks for a designated, negotiated term.
The owners are looking to semi-retire.
This business’ main competitors are located ten to twenty miles away and they maintain competitive advantages over these businesses through their customization of awards, willingness to engrave customer owned items, and theirs repeat customer and referral base over 50 years in business.
As the sellers are not on-site full time, they believe that a new owner who is a hands-on manager will benefit the business tremendously both from an operational and profitability standpoint. The sellers have not invested as much time as they would like in active marketing, as their repeat business has kept them as busy as they have wanted. They believe that their solid web presence and on-line sales capabilities have enhanced their business presence and profitability but believe that supplementing the existing web presence with more direct social media marketing will enhance business levels even further. Network marketing via the local Chamber of Commerce and other civic organizations has also not been fully tapped and could provide a productive marketing resource that a new owner could greatly benefit from. Operationally, the current owners have thought of offering full color direct printing capabilities and adding a POS system but have not made those a priority to date. They do fully believe, however that the addition of both will certainly improve the business.
The company was founded in 1969, making the business 53 years old.
The transaction shall include inventory valued at $40,000, which is included in the asking price.
The business has 2 employees and is situated in a building with disclosed square footage of 1,600 sq ft.
The property is leased by the company for $2,400 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. Nonetheless, the true factor vs the one they say to you may be 2 totally different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, recent decrease in profits, or an array of various other reasons. This is why it is extremely important that you not rely completely on a vendor's word, however instead, utilize the vendor's answer combined with your total due diligence. This will paint an extra realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover things such as supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that earnings margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new customers? Often times, operating businesses have repeat consumers, which form the core of their day-to-day earnings. Certain elements such as new competitors sprouting up around the location, roadway building and construction, as well as employee turnover can influence repeat clients and adversely influence future profits. One important point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to build a returning customer base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional average home income impact future income prospects?