Business Overview

This independent ice cream and dessert cafe has a proven model with a large, heated outdoor area. Their menu provides traditional ice cream, bubble tea, and many dessert options such as crepes and flavored waffle delights! The location is tremendous in an extremely high traffic area. There is also a solid social media following for the location as word continues to spread on what they have to offer. If you’re looking at this category, it is definitely a must see opportunity for review!

Financial

  • Asking Price: $225,000
  • Cash Flow: $61,820
  • Gross Revenue: $201,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $8,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Owner wants to focus on other businesses

Additional Info

The transaction shall include inventory valued at $8,000, which is included in the requested price.

The business has 6 employees and resides in a building with estimated square footage of N/A sq ft.
The building is leased by the business for $3,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell operating businesses. Nevertheless, the real factor vs the one they tell you might be 2 totally different things. For instance, they might say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be reasons to try to hide the reality of transforming demographics, increased competition, current decrease in profits, or a range of various other reasons. This is why it is really essential that you not count totally on a vendor's word, yet instead, use the seller's solution along with your overall due diligence. This will repaint a more reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies finance loans in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too tight. Many companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new consumers? Often times, operating businesses have repeat consumers, which create the core of their day-to-day profits. Certain elements such as brand-new competition growing up around the area, roadway building and construction, as well as personnel turn over can affect repeat clients and negatively affect future profits. One crucial point to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning consumer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the regional median home income impact future earnings potential?