Listing ID: 81224
Great investment property that is an already established business in a rural town that is quickly being discovered by the outside market! Building offers an office, 3 bays, storage room, 2 bathrooms, and an extra detached storage unit. Prime location on a busy downtown road.
- Asking Price: $350,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:1,575
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell companies. Nonetheless, the real reason and the one they say to you may be 2 totally different things. As an example, they may state "I have too many various obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competition, recent reduction in earnings, or a range of various other reasons. This is why it is really crucial that you not rely absolutely on a seller's word, yet rather, use the vendor's solution combined with your general due diligence. This will paint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover items like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day profits. Certain elements such as brand-new competitors sprouting up around the area, road construction, and personnel turnover can affect repeat customers and negatively impact future profits. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the better the chance to construct a returning customer base. A last idea is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local mean household income influence future earnings potential?