Listing ID: 79123
Price recently reduced by a motivated seller! A tremendous opportunity to own a specialty bakery with a stellar reputation that has been at its current location for 20 years. The business has become well known over the years for its variety of homemade baked goods including donuts, pies, cakes along with breads and quiches.
This business could be ideal for a pastry chef or a couple who would like to own their own business and be an integral part of a small community.
- Asking Price: $180,000
- Cash Flow: $66,099
- Gross Revenue: $407,505
- EBITDA: N/A
- FF&E: $75,000
- Inventory: $4,000
- Inventory Included: N/A
- Established: 2001
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
2,500 square foot building that includes a retail shop with seating for 12, a commercial kitchen with many newer appliances, and a lower level used for storage and additional food prep.
Current owner will provide training for two weeks for up to 20 hours per week as part of the sale. Additional owner time can be negotiated.
The seller is looking to retire.
This business is located on a busy state road frequented by regular customers and seasonal travelers. There are several major chain outlets on this road, but they do not offer the homemade products that this business does.
The current owner believes that as we get back to more in-person events there are opportunities to market the business at local and regional events such as Chamber of Commerce gatherings, flea markets and such. The plan was to do those types of events on a regular basis prior to Covid-19 restrictions. Also, despite the current presence on social media (Facebook, Twitter) the owner feels that a new owner could enhance the current activity level and direct more foot traffic and online orders to the business. Due to the retail nature of the business, the opportunity exists to expand the current menu and add more hours. The owner made dinners during the pandemic which allowed for more store utilization and another revenue source. A new owner could look to scale the production and start wholesaling the products as well.
The venture was established in 2001, making the business 21 years old.
The transaction won't include inventory valued at $4,000*, which ins't included in the listing price.
The company has 7 employees and resides in a building with estimated square footage of 2,500 sq ft.
The real estate is leased by the company for $2,300 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. However, the real reason and the one they tell you may be 2 absolutely different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of other factors. This is why it is very important that you not count absolutely on a vendor's word, yet instead, make use of the seller's answer combined with your total due diligence. This will repaint a much more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that profit margins are too small. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in new customers? Most times, businesses have repeat customers, which form the core of their everyday revenues. Particular aspects such as brand-new competition sprouting up around the location, roadway building and construction, as well as personnel turnover can impact repeat consumers and also negatively impact future incomes. One vital point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the greater the possibility to develop a returning client base. A last idea is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Just how might the neighborhood average home earnings influence future earnings potential?