Business Overview

Established music store featuring 6 private lesson rooms, excellent floor space, and a prime location. Considering minimal competition, fun friendly staff and reputation, and ample space for store front growth, this is the perfect business to enjoy operating and watch grow.

Financial

  • Asking Price: $509,885
  • Cash Flow: $146,000
  • Gross Revenue: $380,000
  • EBITDA: N/A
  • FF&E: $17,000
  • Inventory: $30,000
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

In 2011, this business was started by a young, entrepreneurial music loving owner. Building a brand centered around quality, business, and music loving, this business has grown to thrive in the low country market growing in revenues, earnings, and reputation each year. The business uses its facility effectively offering private lessons, instrument and accessory retail, instruments and amplifier repairs, and band instrument rentals. The well known and established music store maintains a small and collective atmosphere that the clientele love and appreciate.

Purpose For Selling:

retirement

Pros and Cons:

In the Music Store industry, there are a small number of stores within 50 miles. Most competition is not in a direct geographical competition other than one large guitar store, since this business caters just as much to a smaller feel, while producing consistent growth in revenues and clientele, this business has room to expand to additional locations and take over some soon-to-retire shops in the Savannah area as well.

Opportunities and Growth:

There is room for tremendous growth for this business. Whether the new owner would like to continue to maximize the space in the current location, or use the strong name and foundation to open additional locations, this business has experienced growth each year since opening and with the right ownership is expected to continue on the steep growth curve!

Additional Info

The transaction won't include inventory valued at $30,000*, which ins't included in the requested price.

The property is leased by the company for $1,750 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. Nevertheless, the true factor vs the one they say to you might be 2 entirely different things. As an example, they might state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, recent reduction in incomes, or an array of various other reasons. This is why it is really essential that you not depend completely on a seller's word, yet instead, use the vendor's response combined with your overall due diligence. This will repaint an extra sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that profit margins are too tight. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract brand-new consumers? Most times, companies have repeat clients, which develop the core of their everyday profits. Certain variables such as brand-new competition sprouting up around the area, road building and construction, and staff turnover can affect repeat clients as well as adversely impact future profits. One crucial point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the greater the possibility to construct a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Exactly how might the regional mean home earnings influence future earnings potential?