Listing ID: 82408
This well-established hometown building supply store has maintained a long history of lasting relationships with its customers. They are committed to excellent customer service and offer an extensive range of quality products and services. In addition to lumber and all types of building supplies, they also offer:
• Animal Feed & Supplies
• Gardening Supplies & Plants
• Paint & Supplies
• Hunting & Fishing Supplies
• Window Repairs
• Gluten Free Foods
• Black Rifle Coffee
• Gifts of all kinds
• And much more!
Currently have one full-time employee and 4 part-time employees.
The business is located in north central Kansas. More detailed financials available from the owner upon request, after signed NDA is in place.
- Asking Price: $730,000
- Cash Flow: N/A
- Gross Revenue: $800,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $320,000
- Inventory Included: Yes
- Established: 2002
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The business was established in 2002, making the business 20 years old.
The sale does include inventory valued at $320,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nonetheless, the real factor and the one they say to you might be 2 totally different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may just be reasons to try to conceal the reality of changing demographics, increased competition, recent decrease in profits, or a range of other factors. This is why it is very essential that you not count completely on a vendor's word, yet instead, make use of the seller's solution along with your overall due diligence. This will repaint a more realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover things like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that revenue margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract new consumers? Many times, businesses have repeat clients, which develop the core of their daily revenues. Specific variables such as brand-new competitors growing up around the location, roadway construction, and personnel turn over can impact repeat clients and also negatively affect future revenues. One crucial thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the possibility to build a returning consumer base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Exactly how might the local median family income impact future income potential?