Business Overview

This retail sales and service business has been in business for over 20 years. Has been absentee owned for the past 2 years and is profitable. Currently the store is only open 30 hours per week. The owner has other business interests and would like to sell this business. The seller will train the new owner.

Financial

  • Asking Price: $95,000
  • Cash Flow: $78,954
  • Gross Revenue: $152,591
  • EBITDA: N/A
  • FF&E: $2,000
  • Inventory: $15,000
  • Inventory Included: Yes
  • Established: 1989

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,500
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Great location and a very good lease.

Is Support & Training Included:

The seller will train the new owner

Purpose For Selling:

Other business interests

Pros and Cons:

No competition in the area

Opportunities and Growth:

Unlimited growth potential

Additional Info

The company was established in 1989, making the business 33 years old.
The sale does include inventory valued at $15,000, which is included in the suggested price.

The business has 1 PT employees and is located in a building with approx. square footage of 1,500 sq ft.
The real estate is leased by the business for $1,737 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell operating businesses. Nonetheless, the genuine factor vs the one they tell you might be 2 completely different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competitors, recent reduction in profits, or a variety of other factors. This is why it is very important that you not count totally on a vendor's word, yet rather, make use of the vendor's answer in conjunction with your total due diligence. This will paint a more sensible image of the business's existing situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that earnings margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in brand-new clients? Many times, companies have repeat customers, which create the core of their daily revenues. Specific aspects such as brand-new competition sprouting up around the area, roadway building and construction, and staff turn over can influence repeat consumers as well as adversely impact future earnings. One essential point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the opportunity to construct a returning client base. A last idea is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? Just how might the regional average family earnings influence future earnings potential?