Business Overview

If you ever wanted to own a health food/natural products store this is your chance. This health food store is a one stop shop for all the health products anyone is looking for – from vitamins to natural personal care items.

The owner maintains an inventory of around $140,000 which is including in the asking price.

The cash flow number assumes the purchaser is an owner operator and they assume the role of store manager.

Financial

  • Asking Price: $200,000
  • Cash Flow: $50,000
  • Gross Revenue: $500,000
  • EBITDA: N/A
  • FF&E: $5,000
  • Inventory: $140,000
  • Inventory Included: Yes
  • Established: 2015

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:2
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The company was started in 2015, making the business 7 years old.
The transaction shall include inventory valued at $140,000, which is included in the requested price.

The business has 2 employees and is situated in a building with estimated square footage of N/A sq ft.
The real estate is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. Nonetheless, the true reason and the one they tell you might be 2 totally different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is really important that you not depend entirely on a vendor's word, but rather, make use of the seller's solution along with your total due diligence. This will repaint a much more reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover items like supplies, payroll, accounts payable, and so on. Remember that in some cases this can imply that revenue margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that must be met or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in new clients? Often times, operating businesses have repeat consumers, which form the core of their daily earnings. Particular factors such as new competition sprouting up around the area, road building, and personnel turnover can impact repeat customers and negatively influence future profits. One crucial point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the greater the possibility to construct a returning consumer base. A final idea is the general 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 average house earnings effect future income prospects?