Listing ID: 80799
The company is a retail/consignment store that buys and sells high-end, gently used outdoor gear and clothing. It focuses on human powered gear & clothing items for biking, hiking, skiing, snowboarding, snowshoeing, camping, climbing, rafting, kayaking, fly fishing, surfing and other outdoor activities.
- Asking Price: $300,000
- Cash Flow: $129,474
- Gross Revenue: $577,224
- EBITDA: N/A
- FF&E: $17,582
- Inventory: $18,824
- Inventory Included: Yes
- Established: 2011
- 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
The business operates from a leased space with main retail space 3,226 square feet, storage area of 901 square feet, and office of 300 square feet in a building. Currently, the company pays $5,000 per month on a gross lease which includes all utilities (except for phone and internet). Lease includes use of the parking lot. It is anticipated that the landlord will work with a new owner to negotiate acceptable lease terms.
Will train for 4 weeks @ $0 cost. An individual who is experienced retail, hospitality or service oriented or related complementary customer-centric businesses is an ideal candidate to purchase this business. Additionally, prior management/supervisory experience, and a general business background would be very helpful. If you have management experience, and 20% of the purchase price in cash (or in your IRA or 401k)* for a down payment, this business could be yours.
The current owners are looking to sell so they can focus on other opportunities.
The Outdoor Industry is one of the fastest growing segments of retail! Nearly half of all Americans participated in at least one outdoor activity in 2019, and that number keeps growing. That number equates to 142.4 million participants, who went on a collective 11.7 billion outdoor outings. In the US, outdoor recreation retail sales represents a 126 billion dollar a year market and continues to grow as Americans seek a healthier, socially distanced, & environmentally conscious lifestyles. Additionally, this business has a proven model in a growing location. A new owner will be positioned to capitalize on this growth.
The venture was established in 2011, making the business 11 years old.
The deal does include inventory valued at $18,824, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. Nonetheless, the genuine factor and the one they tell you might be 2 absolutely different things. For instance, they may state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may 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 very essential that you not count totally on a seller's word, yet instead, use the vendor's solution together with your overall due diligence. This will paint an extra practical image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering things like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that profit margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in brand-new consumers? Often times, operating businesses have repeat clients, which create the core of their day-to-day earnings. Particular factors such as new competitors growing up around the area, road building, and employee turn over can affect repeat clients and negatively influence future earnings. One crucial thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the higher the chance to build a returning consumer base. A last idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? How might the regional mean home income influence future income potential?