Business Overview

Long established bike store located on a high-flow road. This landmark bike store is in the perfect location to tap into the tourist and local populations. Over the years they have developed a great reputation for service and standing behind their product. This is an excellent opportunity to make your passion your career. Please refer to listing 7101-565609 and advisor Richard Murray when inquiring.

Financial

  • Asking Price: $279,000
  • Cash Flow: $147,723
  • Gross Revenue: $644,815
  • EBITDA: N/A
  • FF&E: $15,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 2007

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Lease/Month: 2564 Square Footage: 2000 Building Type: Strip Center Terms & Options: 5 year option Expiration Date: 12/31/2022

Is Support & Training Included:

Seller will train for 2 weeks at no cost.

Purpose For Selling:

Other

Additional Info

The business was established in 2007, making the business 15 years old.
The transaction will include inventory valued at $100,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell operating businesses. Nevertheless, the true reason vs the one they tell you may be 2 entirely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, current decrease in earnings, or a variety of various other factors. This is why it is very crucial that you not depend completely on a vendor's word, yet instead, make use of the seller's response combined with your general due diligence. This will paint a much more sensible image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover items like stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in brand-new clients? Many times, operating businesses have repeat customers, which create the core of their everyday revenues. Specific aspects such as new competition sprouting up around the location, road building and construction, as well as staff turn over can affect repeat clients and also negatively affect future incomes. One vital point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the greater the chance to construct a returning client base. A last idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the regional average house earnings influence future income potential?