Listing ID: 81316
This premier entertainment venue has quickly made a mark in the Reno-Sparks area. While this venue has built a loyal and diverse client base on its Latin roots, they play host to a variety of renowned DJ’s and live acts across multiple genres, including hip hop, Latin & reggae. This turn key lounge and night club fill a much-needed void in the local entertainment scene and is poised to gain even more traction in 2022. The seller has built a profitable business that can be seamlessly transferred to new ownership without skipping a beat.
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- Asking Price: $495,000
- Cash Flow: $175,894
- Gross Revenue: $915,150
- EBITDA: N/A
- FF&E: N/A
- Inventory: $15,000
- Inventory Included: Yes
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,100
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 2020, making the business 2 years old.
The sale will include inventory valued at $15,000, which is included in the asking price.
The company has 10 employees and resides in a building with estimated square footage of 4,100 sq ft.
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell operating businesses. However, the true factor and the one they say to you might be 2 entirely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in profits, or a range of other factors. This is why it is extremely important that you not count absolutely on a vendor's word, however rather, make use of the vendor's answer in conjunction with your general due diligence. This will paint a much more practical image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean 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 likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that should be fulfilled or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in new clients? Most times, companies have repeat customers, which form the core of their everyday profits. Specific aspects such as brand-new competitors sprouting up around the area, roadway building and construction, and employee turnover can impact repeat clients as well as negatively influence future incomes. One crucial point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the higher the possibility to construct a returning consumer base. A final idea is the general area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Just how might the neighborhood mean family earnings effect future income prospects?