Listing ID: 81208
23 years of establishment Retail business, so many repeat regular customers.
Easy to operate and manage.
Money generating business.
- Asking Price: $395,000
- Cash Flow: $120,000
- Gross Revenue: $550,000
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $150,000
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1998, making the business 24 years old.
The sale shall include inventory valued at $150,000, which is included in the asking price.
The business has 1 employees and is located in a building with approx. square footage of 1,200 sq ft.
The property is leased by the business for $2,645 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the genuine factor vs the one they say to you may be 2 totally different things. As an example, they might state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or an array of various other reasons. This is why it is really vital that you not count absolutely on a vendor's word, yet instead, make use of the seller's response in conjunction with your total due diligence. This will paint a much more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans in order to cover items like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that revenue margins are too tight. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new consumers? Often times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Certain elements such as brand-new competitors growing up around the location, roadway building and construction, and staff turnover can influence repeat clients and adversely influence future incomes. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the higher the possibility to build a returning client base. A final idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood average house income impact future income potential?