Listing ID: 82820
Business Overview
Well established business providing signage needs to businesses locally and regionally. The business was started from the owner’s garage and has been successful from the beginning. The company has provided signage to some of the areas largest businesses and has always done so with integrity and honesty. They always strive to provide a quality product at a reasonable price and this has been successful for over 30 years as they have developed a loyal customer base of thousands.
Financial
- Asking Price: $318,000
- Cash Flow: $116,388
- Gross Revenue: $777,390
- EBITDA: N/A
- FF&E: $5,000
- Inventory: $70,000
- Inventory Included: Yes
- Established: 1984
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The business location is excellent with visibility on one of the busiest streets in the community. The facility itself is set up well for the company operations. The showroom and waiting room area is loaded with samples of items offered and examples of projects done over the years. The design and production areas are laid out in the most efficient manner possible to increase productivity on all of the jobs. There is also plenty of climate controlled space to work on vehicle projects indoors regardless of the climate outside which is critical to the company's success.
Will train for 2 weeks @ $0 cost. No special licenses are needed to operate this business but the employee base is well trained and skilled in the work required.
Ownership is ready to retire and pass the business.
The signage industry has changed over the years to include digital signage but the need for printed stationary signage remains strong, regardless of the purpose. This company has remained relevant for over 30 years and served thousands of customers. The need for advertisement, mostly for business purposes and to a lessor extent for personal purposes, will not go away. As the world evolves there will always be a need to communicate through signage. There are plenty of competitors in this business, but none that can offer the service and quality of this company at the competitive pricing they use. Most of the business comes from word of mouth and current and previous customer referrals. This is the biggest complement to any company.
As mentioned, sales and marketing of the business has not been a focus. A new owner that wants to spend some time and money by advertising and being out in the community could make an immediate impact on revenues. The company website is another area where growth potential is apparent. The website could be made more interactive and allow customers to order things online.
Additional Info
The company was established in 1984, making the business 38 years old.
The sale will include inventory valued at $70,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. However, the real reason and the one they tell you might be 2 totally different things. As an example, they may claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competition, recent decrease in profits, or an array of other factors. This is why it is really essential that you not depend entirely on a seller's word, yet rather, utilize the seller's answer together with your total due diligence. This will repaint a more realistic 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 take out loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too small. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There may 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 might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new clients? Most times, businesses have repeat customers, which create the core of their everyday profits. Specific aspects such as new competition sprouting up around the location, road building, and personnel turn over can affect repeat clients and also negatively influence future incomes. One important point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the greater the possibility to construct a returning customer base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? How might the regional mean house earnings effect future earnings prospects?
