Listing ID: 82870
Industry Leader/Patented/ Green/ Complete Floor/Carpet Cleaning Service
Patented, Elite B2B, B2C, complete floor/Carpet Cleaning business!
Complete Services of Hardwoods, Tile, Vinal, and Carpet! All Cleaning products are Patented, Green, and safe for children and Pets. Easy to learn business with high repeat customer usage. Very high margins and low overhead. Quick drying process and with products that are exclusive to you. This an essential business! Some seller financing available. Proven systems and back office technology come with the business. Very scalable!!
- Asking Price: $125,600
- Cash Flow: $231,500
- Gross Revenue: $665,300
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 completely different things. For instance, they might say "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is extremely vital that you not depend entirely on a seller's word, yet rather, utilize the vendor's answer in conjunction with your total due diligence. This will repaint an extra practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover points like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too tight. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new clients? Most times, businesses have repeat consumers, which develop the core of their daily earnings. Specific variables such as brand-new competitors sprouting up around the area, roadway construction, and also employee turnover can affect repeat customers and negatively impact future incomes. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the better the chance to develop a returning customer base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? Exactly how might the regional mean household income effect future revenue potential?