Listing ID: 82593
Business is located in small community near the Little Bighorn Battlefield National Monument. Current Owners have owned and operated this successful business since 1995. The business serves local customers, as well as, additional customers frequenting the business as it is near the Interstate.
- Asking Price: $430,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1995
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
The Inventory is additional and due to Sellers at closing.
Owners are planning on retiring.
The business was started in 1995, making the business 27 years old.
The business has 9 employees and is situated in a building with approx. square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell operating businesses. However, the real reason and the one they tell you may be 2 entirely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competitors, recent decrease in earnings, or a range of various other reasons. This is why it is really important that you not depend completely on a seller's word, however instead, utilize the seller's answer along with your general due diligence. This will paint an extra reasonable picture of the business's existing circumstance.
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 deal. Many companies finance loans 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 suggest that profit margins are too thin. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new consumers? Most times, companies have repeat consumers, which create the core of their day-to-day earnings. Specific factors such as new competitors growing up around the area, road construction, and staff turn over can impact repeat clients as well as negatively influence future revenues. One important thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the greater the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Just how might the neighborhood average house income effect future earnings potential?