Listing ID: 79433
This is 3000 sqft pizza restaurant completely modernized in 2018. All new Restaurant equipment installed at time of modernization. Sit down 80 seats counter for take out and delivery. The rent is $3950 which is very reasonable for the area. The restaurant employees 14 full and part time employees. The restaurant does $20,000.00 per week and each year has increased min. 10%.
- Asking Price: $375,000
- Cash Flow: $150,000
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $6,000
- Inventory Included: N/A
- Established: 2018
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
In excellent shape
will stay min one mth
The venture was started in 2018, making the business 4 years old.
The deal won't include inventory valued at $6,000*, which ins't included in the asking price.
The company has 14 employees and is located in a building with estimated square footage of 3,000 sq ft.
The real estate is leased by the business for $3,950 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you may be 2 completely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competition, recent decrease in profits, or a variety of other factors. This is why it is really crucial that you not count totally on a seller's word, however rather, use the seller's answer combined with your overall due diligence. This will repaint an extra practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that revenue margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new clients? Often times, operating businesses have repeat customers, which form the core of their daily revenues. Particular elements such as brand-new competitors growing up around the location, road building, and also employee turnover can impact repeat clients as well as negatively impact future profits. One essential thing to take into consideration is the placement 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 higher the possibility to construct a returning customer base. A final idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? How might the regional average family earnings effect future income potential?