Listing ID: 81460
neighborhood restaurant in an incredible location that has been a staple of the community for over 10 years and is ready to pass to a new owner. Very high traffic count, location near other successful shops and businesses that drive revenues. Stable and trusted employee base will aid in a transition to the right buyer. Current owner is only a part-time operator. This is a great opportunity for a hands-on owner to add to the success of the business.
- Asking Price: $180,000
- Cash Flow: $72,000
- Gross Revenue: $480,000
- EBITDA: N/A
- FF&E: $60,000
- Inventory: $10,000
- Inventory Included: N/A
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,200
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Moving out of state.
The business was established in 2012, making the business 10 years old.
The deal doesn't include inventory valued at $10,000*, which ins't included in the requested price.
The business has 6 employees and resides in a building with estimated square footage of 3,200 sq ft.
The real estate is leased by the business for $4,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell businesses. However, the real factor and the one they tell you may be 2 entirely different things. For instance, they may claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or a range of other factors. This is why it is very essential that you not depend totally on a seller's word, however instead, make use of the vendor's answer combined with your overall due diligence. This will paint a more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans in order to cover points like inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that revenue margins are too small. Numerous organisations fall 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 commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new consumers? Most times, businesses have repeat customers, which develop the core of their daily revenues. Particular aspects such as brand-new competitors growing up around the location, road building and construction, as well as employee turnover can influence repeat customers as well as negatively affect future incomes. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the greater the opportunity to construct a returning customer base. A final idea is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the local mean home income influence future earnings potential?