Listing ID: 82157
A well established Rent to Own home furnishing/appliance store situated in a high traffic area that has been successfully servicing the community for over 15 years is available to buy. They are known for great service, quality products and providing affordable prices. The growing need for special financing services in the market has never been stronger.
They have many repeat and referral customers, but there are still several opportunities to grow the business for a new owner. Currently operated by a strong team that is expected to stay after the transition with minimum oversight by the owner(s) who are looking to focus on other business entities that do not compete with the business that is being listed for sale.
Excellent acquisition for either someone currently operating in a similar or adjacent business space as well as being an affordable business for someone looking to own their first business.
- Asking Price: $220,000
- Cash Flow: N/A
- Gross Revenue: $412,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,700
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Seller will assist in a smooth transition
The venture was established in 2003, making the business 19 years old.
The business has 4 employees and resides in a building with approx. square footage of 4,700 sq ft.
The real estate is leased by the business for $4,100 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell companies. However, the real reason and the one they tell you might be 2 completely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competition, current reduction in earnings, or an array of various other factors. This is why it is very crucial that you not depend absolutely on a vendor's word, however instead, make use of the seller's solution combined with your total due diligence. This will paint an extra practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover items like stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that profit margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be satisfied or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in new consumers? Most times, operating businesses have repeat clients, which form the core of their everyday earnings. Certain elements such as new competitors growing up around the location, roadway building, and staff turn over can impact repeat customers as well as negatively impact future incomes. One essential thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning customer base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Just how might the regional mean home earnings influence future earnings potential?