Listing ID: 82578
As the area’s only bootmaker since 1986, the owner has catered to and built a loyal customer base among cowboys, doctors, airline pilots and others around the country that live and work in their boots and keep coming back for more. The store not only provides new custom boots, it also stands behind its work. Some people wear good boots and they want them fixed; they pay $600-$700 for a good pair of boots, they don’t want to throw them away. Premium quality materials and craftsmanship are the foundation of the store’s reputation and source for referrals.
- Asking Price: $158,000
- Cash Flow: $32,055
- Gross Revenue: $156,846
- EBITDA: N/A
- FF&E: $68,200
- Inventory: $25,000
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The store occupies retail frontage on a major commercial street with an attached shop off to the side housing its leatherworking, stitching and sewing machines. The whole facility is approximately 1100 sq. ft. with storage closets for leather and materials inventory in the rear. Front and side paved parking is available for customers.
Will train for 12 weeks @ $4,800. The business will reward someone with a passion for hand-crafting, quality leatherwork and who has the business ability to capitalize on the store's location and competitive position.
Owner is ready to retire.
Competition primarily comes from Spokane, Portland and Billings. There are no other boot makers in this area.
Growth can come through modern use of the internet and promotion of the quality products and skills of the bootmaker. With its location in Montana, traveling professionals and tourists can be attracted to the store and its products.
The business was started in 1985, making the business 37 years old.
The transaction will include inventory valued at $25,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell operating businesses. Nonetheless, the real factor vs the one they say to you might be 2 completely different things. For instance, they might claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current reduction in earnings, or a variety of various other reasons. This is why it is really crucial that you not count totally on a vendor's word, yet instead, utilize the vendor's answer combined with your total due diligence. This will paint a more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money with the purpose of covering items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can mean that earnings margins are too thin. Numerous organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in brand-new clients? Most times, companies have repeat customers, which form the core of their everyday earnings. Particular elements such as new competitors growing up around the area, roadway construction, as well as personnel turnover can impact repeat clients and also adversely affect future profits. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the chance to build a returning consumer base. A final thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? How might the local average house income impact future earnings potential?