Listing ID: 82596
Speedy Wash is a long, well established Coin-Operated Self-Service and Drop-Off Laundry Service business. It is located at a very convenient site adjacent to the new Dialysis Clinic currently under construction. The location is very convenient with excellent ingress, egress and parking. The area surrounding the site includes many rental properties, apartments, offices, motels, medical center and various other businesses and residential housing.
- Asking Price: $80,000
- Cash Flow: N/A
- Gross Revenue: $116,597
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1976
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,200
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The 3,200 sq. ft. building was built in 1976 on a 10,500 sq. ft. lot as a coin-op laundry. Lease expires in 2019, but the owner is willing to extend to the new owner a 5-10 year term at the present $2,700 per month with escalation every 5 years. Although the owner of the building (93 years old) is not willing to sell at this time, he indicated that he might be open to a 1st Right of Refusal.
The owners will stay to get a new owner up and going. This includes machine repair and other mechanical issues.
Sellers have owned the business since 1987 and want to retire!
There are a number of competitors in town, but none in the immediate area close to Speedy Wash. This business has an excellent located on one of the two main arterials into downtown Billings.
Speedy Wash has operated successfully throughout the years without any formal Sales & Marketing programs. Opportunities to increase Sales through the Internet and through Social Media are virtually untapped.
The venture was founded in 1976, making the business 46 years old.
The company has 1 employees and is located in a building with approx. square footage of 3,200 sq ft.
The real estate is leased by the business for $2,700 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. However, the real factor vs the one they say to you might be 2 completely different things. For instance, they may say "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or a range of various other reasons. This is why it is extremely crucial that you not count absolutely on a seller's word, however instead, utilize the seller's response along with your overall due diligence. This will paint a much more reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money in order to cover points like inventory, payroll, accounts payable, and so on. Remember that occasionally this can mean that earnings margins are too small. Numerous organisations fall into 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 obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new customers? Often times, companies have repeat consumers, which form the core of their everyday profits. Particular aspects such as brand-new competition growing up around the location, roadway building and construction, and staff turnover can impact repeat customers and negatively influence future profits. One crucial thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the greater the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Exactly how might the local mean house income influence future income prospects?