Listing ID: 81236
Unique innovative training for kids 3 months to 6 years old, training includes educational classes, sports, daycare, healthy food and great exercise and dance classes, profitable business with grants!
Built a unique daycare very challenging to children – began in 2016
Unique classes and activities, outside playground and inside rooms
- Asking Price: $550,000
- Cash Flow: $230,719
- Gross Revenue: $381,572
- EBITDA: N/A
- FF&E: $90,000
- Inventory: $30
- Inventory Included: Yes
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,568
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The company was founded in 2016, making the business 6 years old.
The deal will include inventory valued at $30, which is included in the requested price.
The business has 5 employees and resides in a building with approx. square footage of 4,568 sq ft.
The building is leased by the company for $5,800 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell operating businesses. Nonetheless, the genuine factor and the one they say to you might be 2 completely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competition, current reduction in earnings, or a range of other reasons. This is why it is extremely important that you not count completely on a vendor's word, but rather, make use of the vendor's solution along with your general due diligence. This will repaint a much more realistic image of the business's existing situation.
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 offer. Numerous companies take out loans so as to cover points such as stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that profit margins are too small. Many organisations fall 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 commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new customers? Many times, businesses have repeat clients, which develop the core of their daily revenues. Specific variables such as new competitors sprouting up around the location, road building and construction, and staff turn over can affect repeat clients and also adversely impact future revenues. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the chance to construct a returning customer base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? How might the regional typical household income impact future revenue potential?