Business Overview

This thriving coffee, lunch and dessert café for sale in Southern Iowa delivers on all the charm of a small town with friendly customer service served alongside its delicious homemade food. Their customers are a healthy mix of loyal locals and travelers along the busy nearby highways. Specialty coffees, fresh salads, soups and sandwiches and homemade desserts are served five days a week. This business is important to its community and the locals have done a great job supporting it by attending special events and contracting for catering. This business has been open for five years and it has never seen a day that didn’t turn a profit.

Financial

  • Asking Price: $350,000
  • Cash Flow: $58,303
  • Gross Revenue: $159,913
  • EBITDA: N/A
  • FF&E: $21,020
  • Inventory: $6,500
  • Inventory Included: Yes
  • Established: 2016

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:2,160
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is located in a recently remodeled building in a vibrant part of town.

Is Support & Training Included:

Negotiable.

Purpose For Selling:

Retirement.

Pros and Cons:

The business has a convenient drive thru window which is very popular with their customers and allows for increased capacity and proved to be a great asset during COVID-19.

Opportunities and Growth:

The business could be grown by extending their hours of operation, adding outside seating and doing more special events and catering. A stronger emphasis on marketing efforts through social media as well as more traditional marketing in the surrounding areas and travelers could bring in more customers.

Additional Info

The venture was established in 2016, making the business 6 years old.
The sale does include inventory valued at $6,500, which is included in the requested price.

The business has 4 employees and resides in a building with approx. square footage of 2,160 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell companies. Nonetheless, the true factor and the one they say to you might be 2 absolutely different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be reasons to try to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or an array of other factors. This is why it is really important that you not count totally on a vendor's word, yet rather, make use of the vendor's answer together with your overall due diligence. This will paint a more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover items like stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that earnings margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in brand-new clients? Many times, businesses have repeat clients, which develop the core of their day-to-day earnings. Particular aspects such as brand-new competition sprouting up around the area, roadway building and construction, as well as employee turnover can impact repeat consumers and also negatively influence future revenues. 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 main road? Certainly, the more people that see the business regularly, the higher the possibility to construct a returning customer base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean home earnings effect future earnings potential?