Listing ID: 81237
Great buy for this 1.52 acre commercial lot located in Ely at 1351 Aultman Street. There are two buildings on the property. One was a service station many years ago, building is 1,152 square feet. The other building is approx. 3,600 square feet and has, in the past, been divided into 2 different businesses. They are concrete block buildings built in 1940. Property is a good investment capable of being 3 different businesses. Priced to sell at $390K.
- Asking Price: $390,000
- 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
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nonetheless, the true reason vs the one they say to you might be 2 totally different things. As an example, they might claim "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these might simply be justifications to attempt to hide the reality of altering demographics, increased competitors, current decrease in incomes, or an array of other factors. This is why it is extremely essential that you not rely totally on a seller's word, but rather, make use of the vendor's solution in conjunction with your total due diligence. This will repaint an extra sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering things such as inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that earnings margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that have to be met or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new clients? Most times, operating businesses have repeat clients, which form the core of their daily profits. Particular elements such as brand-new competitors growing up around the area, roadway construction, as well as staff turn over can affect repeat customers as well as adversely impact future revenues. One vital point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the better the possibility to build a returning client base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Just how might the regional average home earnings influence future revenue prospects?