Listing ID: 80566
Business Overview
Thriving home furnishing business with a proven & profitable track record. Easy-to-run business model with immediate cash-flow. Family owned business that’s been around since 2012. Its branded trade name is easily recognized for its outstanding reputation and exceptional customer service within this tight-knit island community of nearly 200,000 residents. The business has a beautiful showroom, and as a NON-Franchised store, there are no royalties or franchise fees to pay! The store sells a wide range of items including mattresses/bed frames and adjustable bases, bedroom and living room furniture, massage chairs, accessories including rugs, tables, mirrors and wall decorations. Deliveries are easily handled with their Isuzu NPR box truck that shows near-new and is fully wrapped/painted with matching trade name/logo. Strong and diverse client base that continues to grow year after year. There are scores of stellar 5 star reviews posted online on various social media platforms which are a testament to this business’s reputation, or ‘goodwill’, as it’s more commonly referred to. Also, brand new software just purchased ($4,500) to integrate inventory management, ordering and accounting that is specific to the furniture industry is also included.
High profits, high quality products, exceptional customer service & low overhead make this business a winning formula!
Financial
- Asking Price: $330,000
- Cash Flow: $127,000
- Gross Revenue: $532,000
- EBITDA: N/A
- FF&E: $19,885
- Inventory: $100,000
- Inventory Included: Yes
- Established: 2012
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Very manageable (and affordable) 1,500 sq. ft. showroom conveniently located in a busy shopping center/light industrial park near the heart of downtown Kona with ample free parking and easy access. Assumable lease. There is also an offsite location where surplus inventory is stored inside both a 40ft. & 20ft. shipping container/s. The current owner will allow a buyer to continue to use this storage arrangement for up to 3 months post-closing at NO CHARGE.
30 days operational support to ensure a smooth transition with vendors, clients and daily operations.
Owner would like to focus on their other unrelated business.
Average competition for the industry, but none that offer the level of customer service and unique quality product lines as this one! This company mantra is: “you ring…I bring” which is what sets them apart from all the others!
The organic growth in the past 9 years (and stated gross sales) have all been achieved by only ONE person, the owner. One owner/manager can run this business just as the current owner is doing, but the addition of either a spouse/partner or even adding 1 employee to the mix will only add value and fuel its future growth to reach the next level… the demand for their products is there! The business is already in a position to consider looking for a larger showroom in the near future, all dependent on how big you want to go.
Additional Info
The company was founded in 2012, making the business 10 years old.
The sale will include inventory valued at $100,000, which is included in the asking price.
The business has 1 employees and is located in a building with disclosed square footage of 1,500 sq ft.
The real estate is leased by the business for $2,994 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 absolutely different things. For instance, they may state "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be excuses to try to conceal the reality of altering demographics, increased competition, current reduction in earnings, or a variety of various other reasons. This is why it is very essential that you not rely totally on a vendor's word, yet instead, utilize the vendor's answer in conjunction with your general due diligence. This will paint a much more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses finance loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that profit margins are too tight. Many companies fall under 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 take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in brand-new consumers? Many times, operating businesses have repeat consumers, which form the core of their daily revenues. Certain variables such as brand-new competition growing up around the area, road building, and personnel turnover can affect repeat clients and adversely influence future revenues. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the greater the chance to develop a returning consumer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood median house earnings impact future revenue potential?
