Listing ID: 81255
Rents and sells used, new and rare video games, provides professional game console repair service and able to assist with hard to find systems and accessories.
Long history in this industry with excellent contacts
New buyer with energy to dive into this business
- Asking Price: $175,000
- Cash Flow: $60,000
- Gross Revenue: $221,000
- EBITDA: N/A
- FF&E: $58,000
- Inventory: $100,000
- Inventory Included: Yes
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,952
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The business was started in 2011, making the business 11 years old.
The deal does include inventory valued at $100,000, which is included in the suggested price.
The company has 1 employees and is located in a building with disclosed square footage of 1,952 sq ft.
The property is leased by the company for $3,700 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. However, the true reason vs the one they say to you may be 2 entirely different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, recent decrease in profits, or a range of various other reasons. This is why it is very important that you not count entirely on a seller's word, yet rather, utilize the vendor's solution together with your general due diligence. This will repaint a 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. Many businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Remember that sometimes this can indicate that earnings margins are too thin. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be satisfied or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new customers? Most times, businesses have repeat customers, which develop the core of their daily revenues. Specific factors such as new competition growing up around the area, roadway construction, and also employee turnover can affect repeat consumers and also negatively influence future profits. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the greater the possibility to construct a returning client base. A last thought is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Just how might the local median home earnings influence future income prospects?