Listing ID: 82275
Established sixteen years ago, this consignment shop offer and easy outlet for convenient and hassle free sale of pre-owned finer furnishing.
With a thousand items to choose from, this business is “the most convenient way to sell…..the smartest way to buy.”
11,000 sq. ft of space.
Growing sales…and cash flow positive.
- Asking Price: $250,000
- Cash Flow: $323,534
- Gross Revenue: $1,841,826
- EBITDA: $323,534
- FF&E: $15,000
- Inventory: $25,000
- Inventory Included: Yes
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:11,000
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
11,000 sq. ft. 4 bays.
The venture was established in 2005, making the business 17 years old.
The deal will include inventory valued at $25,000, which is included in the suggested price.
The company has 9 employees and is situated in a building with estimated square footage of 11,000 sq ft.
The property is leased by the business for $13,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. Nevertheless, the true factor and the one they tell you may be 2 entirely different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in profits, or an array of other reasons. This is why it is very important that you not count totally on a seller's word, however instead, make use of the seller's solution combined with your general due diligence. This will repaint an extra realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover items like stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that earnings margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new consumers? Many times, businesses have repeat customers, which create the core of their everyday revenues. Particular aspects such as brand-new competition growing up around the area, road construction, as well as personnel turn over can influence repeat consumers as well as negatively affect future earnings. One vital thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the higher the chance to develop a returning client base. A last idea is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood average home earnings impact future income potential?