Listing ID: 79322
Thirty year local watering hole. Nice stage for live music or karaoke. Pool table and juke box available for fun and dance. Always good service and a friendly place to relax.
- Asking Price: $300,000
- Cash Flow: $100,000
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: 1992
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Two weeks Support / Training
The business was started in 1992, making the business 30 years old.
The sale doesn't include inventory valued at $5,000*, which ins't included in the listing price.
The business has 4 employees and is located in a building with disclosed square footage of 1,600 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nevertheless, the genuine factor vs the one they say to you might be 2 completely different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is very important that you not count entirely on a seller's word, however rather, make use of the vendor's response combined with your total due diligence. This will paint a much more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money in order to cover things such as stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that revenue margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new customers? Most times, companies have repeat customers, which create the core of their daily profits. Particular variables such as new competition growing up around the location, roadway building, as well as personnel turn over can affect repeat clients as well as negatively affect future profits. One crucial thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the better the chance to develop a returning consumer base. A final thought is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood typical household income impact future revenue prospects?