Listing ID: 79367
Seller is looking to move to a different career hence the sale. Good contracts lawns and pools, regular customers who pay well. A set of equipment is included in the sale comprising O turn mower, 6 x 10 trailer, stihl weed hacker, weed sprayer, edger and hand bloer, plus pool poles and brushes and nets. Good business for someone starting out as it is varied. Seller will give a guarantee/undertaking not to contact the customers once they have sold.
- Asking Price: $99,000
- Cash Flow: $65,412
- Gross Revenue: $72,908
- EBITDA: N/A
- FF&E: $10,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 2016
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
change of career
The venture was founded in 2016, making the business 6 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. Nevertheless, the genuine reason vs the one they say to you might be 2 totally different things. As an example, they may state "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a range of various other factors. This is why it is really important that you not depend totally on a vendor's word, however rather, utilize the vendor's solution together with your total due diligence. This will repaint a much more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money with the purpose of covering things like inventory, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract brand-new customers? Many times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Particular factors such as new competition growing up around the location, road building, and personnel turnover can affect repeat clients as well as adversely affect future revenues. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the better the opportunity to construct a returning client base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical house income effect future revenue potential?