Listing ID: 82842
This is a high-end clothing retail store with a long history and a loyal clientele. They carry trendy clothing that is geared toward professional, fashionable women. On top of their well-known brick and mortar store front they have a strong E-commerce store front that was enhanced in 2020 and has seen significant growth since COVID began. This is a great opportunity for either a full-time active owner or a part-time owner. The owner is committed to a smooth transition to a new owner and will assist in proper training.
- Asking Price: $297,000
- Cash Flow: $133,968
- Gross Revenue: $912,475
- EBITDA: N/A
- FF&E: $35,000
- Inventory: $80,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
High traffic retail area.
Owner is committed to a smooth ownership transition.
Family / Other Business Interests
The sale will include inventory valued at $80,000, which is included in the asking price.
The company has 3 employees and is situated in a building with disclosed square footage of N/A sq ft.
The real estate is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you may be 2 absolutely different things. As an example, they might claim "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be justifications to try to hide the reality of altering demographics, increased competitors, current reduction in earnings, or a variety of various other reasons. This is why it is really important that you not depend completely on a seller's word, but rather, utilize the seller's response in conjunction with your general due diligence. This will repaint a more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that revenue margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be met or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in brand-new consumers? Most times, companies have repeat clients, which develop the core of their everyday revenues. Specific factors such as brand-new competition growing up around the location, road building, and staff turn over can affect repeat customers and also negatively affect future incomes. One essential thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the greater the possibility to build a returning consumer base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the local average family income influence future income potential?