Listing ID: 80510
Business Overview
Well-established full service music store, focusing on the sale of musical instruments and accessories, music lessons, and musical instrument repairs. Currently has a full roster of students with a waiting list, and knowledgeable music instructors, many of whom have been with the company since it opened.
Well-known in the community with a loyal clientele; pull in clients from a wide range of surrounding areas; known for excellent customer service and the ability to locate a variety of items for customers; clean, well-stocked store; knowledgeable staff; well-established industry contacts and vendor relationships.
This shop has great potential for expansion.
Well-known in the community with a loyal clientele; pull in clients from areas beyond Canton; known for excellent customer service and the ability to locate a wide variety of items for customers; clean, well-stocked store; knowledgeable music instructors; industry contacts and established vendor relationships.
The shop has much potential for expansion. We currently have a waiting list for music lessons, and adding lesson rooms and instructors would increase revenue. More floor space in the showroom would allow for additional products to be offered. We currently have a middle school across the street, and a new high school is scheduled to be built within walking distance in the next year or so. There are condos, apartments, and subdivisions in the immediate area currently under construction. There will also be a water park, lagoon, amphitheater, corporate event venue, and tourist attraction built down the street. This area is booming right now, so traffic will increase over the next few years.
2,000 SF shop, well-insulated, with 5 lesson rooms, a seating area for parents, restrooms, a repair shop, an office, and a showroom for the products.
Financial
- Asking Price: $210,000
- Cash Flow: $80,000
- Gross Revenue: $423,211
- EBITDA: N/A
- FF&E: $7,000
- Inventory: $42,000
- Inventory Included: Yes
- Established: 2013
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
2 weeks
retiring
Additional Info
The business was established in 2013, making the business 9 years old.
The sale will include inventory valued at $42,000, which is included in the suggested price.
The company has 2 employees and is located in a building with estimated square footage of 2,000 sq ft.
The real estate is leased by the company for $3,186 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. Nevertheless, the genuine reason and the one they tell you might be 2 entirely different things. For instance, they might claim "I have too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competition, recent decrease 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, but instead, make use of the vendor's response along with your overall due diligence. This will repaint a much more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies finance loans so as to cover things such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that earnings margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new customers? Most times, companies have repeat consumers, which form the core of their daily revenues. Particular factors such as brand-new competition growing up around the area, roadway building, and also staff turn over can impact repeat customers and adversely influence future profits. One vital thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the greater the opportunity to build a returning customer base. A final thought is the general location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the neighborhood average home income effect future income prospects?
