Business Overview

This specialty grocer originally opened in the 90’s and has built a reputation for offering quality hand-trimmed meats, poultry, and home-made sausage. The current owner took over in 2018 and has grown sales during their time operating the business and there is still a ton of potential for growing the business further.

Little-to-no marketing is currently being done. Their customer base has been
built grown over 20 years through word of mouth and today enjoys overwhelmingly positive reviews online.

Financial

  • Asking Price: $329,000
  • Cash Flow: $86,250
  • Gross Revenue: $871,390
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $50,000
  • Inventory Included: N/A
  • 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:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Clean, well maintained, and reliable equipment. Located on a high traffic street.

Is Support & Training Included:

Owner will include a reasonable amount of time in the sale for training and will ensure a thorough transition.

Purpose For Selling:

Retirement

Pros and Cons:

Specialty grocer with loyal, recurring customers, that doesn't need to competes on quality and value, not on price.

Opportunities and Growth:

Huge opportunity to grow via catering and local wholesale customers.

Additional Info

The transaction won't include inventory valued at $50,000*, which ins't included in the requested price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. Nonetheless, the genuine reason and the one they tell you may be 2 entirely different things. As an example, they might say "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competition, current decrease in earnings, or a range of various other reasons. This is why it is very vital that you not depend completely on a seller's word, however instead, use the seller's response in conjunction with your total due diligence. This will paint a much more realistic picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that profit margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations 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 vendors that need to be met or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract new clients? Many times, operating businesses have repeat customers, which create the core of their daily profits. Certain factors such as brand-new competition sprouting up around the area, road building, as well as staff turn over can affect repeat clients and adversely influence future profits. One essential thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to construct a returning client base. A last idea is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the local typical family income impact future revenue prospects?