Business Overview

This innovative tutoring service provides individually customized educational curriculum that has been created through over 40 years of classroom experience and research. The bright facility has recently undergone a marketing/branding update. The experienced tutors (12-13 part time) currently serve 70-85 enrollees, with fees averaging $275 each, per month. Each student is assessed and an individualized learning plan is created. Remote tutoring, necessitated by the virus pandemic, has been fully implemented (approximately 20% participation and growing) and allows increase flexibility in scheduling, both for the students and the staff.
The asking price of $109,000, compares favorably against a ground-up, start-up which could cost upwards of $150,000. The seller estimates it took nearly 24 months from start-up to reach optimum profitability. Assets included are valued at $10,000. For an owner/operator, serving as center director, the discretionary earnings can increase to $60,000. The seller will show a buyer ways to decrease some costs he has incurred due to his unique situation. The seller will provide full support and training for a smooth transition, before moving on to pursue other business ventures.
Contact Dennis Huffine, VP/Sr. Business Broker, 402-350-6494, dennis.huffine@resultsba.com for complete details.

Financial

  • Asking Price: $109,000
  • Cash Flow: $59,000
  • Gross Revenue: $254,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 2018

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,420
  • Lot Size:N/A
  • Total Number of Employees:13
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Bright facility located on busy street in growing part of the city. Recent re-branding and renovation.

Is Support & Training Included:

Full training and follow-up support as necessary and negotiated.

Purpose For Selling:

Other business ventures, full time job.

Pros and Cons:

Additional marketing, additional staff and hours can increase revenue and profits.

Opportunities and Growth:

Unique curriculum, individualized lesson plans.

Additional Info

The venture was founded in 2018, making the business 4 years old.

The company has 13 employees and is situated in a building with estimated square footage of 1,420 sq ft.
The property is leased by the company for $3,600 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell companies. Nonetheless, the real reason and the one they tell you may be 2 completely different things. For instance, they might claim "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in earnings, or an array of various other factors. This is why it is really vital that you not rely completely on a vendor's word, yet instead, utilize the vendor's response in conjunction with your general due diligence. This will repaint an extra practical image of the business's present situation.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Many companies borrow money so as to cover points like inventory, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in new clients? Most times, operating businesses have repeat consumers, which form the core of their everyday earnings. Specific variables such as brand-new competition growing up around the area, roadway building and construction, and staff turnover can impact repeat clients as well as adversely influence future earnings. One important point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the possibility to build a returning customer base. A last thought is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the regional median household income effect future income potential?