Listing ID: 82938
First barber shop in the county serving the ethnic community. Has been in business in this area for 20 years and is well known in the community. The business overhead is extremely low. Revenue can be immediately increased by add barbers/stylist at 3 available stations. Owner would like to stay on and rent a station. The financial figures quoted include both the owner/operator revenue as well as the existing station rental income. For additional information please contact listing agent Bruce Thompson at 314-614-6390 or firstname.lastname@example.org.
- Asking Price: $120,000
- Cash Flow: $42,465
- Gross Revenue: $54,506
- EBITDA: N/A
- FF&E: $13,500
- Inventory: $1,500
- Inventory Included: Yes
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:600
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
This is a leased location of 600 square feet with a Total Rent of $425. Lease is month to month. Seller is active in the business with 1 FT employee and 1 Independent Contractor. Hours of operation are 10 AM to 7 PM, Tuesday - Saturday. $1,500 in Inventory and $213,500 in FF&E included in Asking Price. Barber License License Required.
The venture was founded in 1997, making the business 25 years old.
The transaction shall include inventory valued at $1,500, which is included in the asking price.
The company has 2 employees and is situated in a building with estimated square footage of 600 sq ft.
The building is leased by the company for $425 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell businesses. However, the genuine reason and the one they tell you might be 2 absolutely different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, current decrease in revenues, or an array of other reasons. This is why it is extremely important that you not depend completely on a vendor's word, yet instead, utilize the vendor's solution along with your general due diligence. This will repaint an extra realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering things such as inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that earnings margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be met or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new consumers? Most times, companies have repeat consumers, which develop the core of their daily earnings. Certain elements such as brand-new competitors growing up around the area, roadway construction, and also personnel turnover can affect repeat consumers and adversely influence future earnings. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the better the chance to build a returning consumer base. A final idea is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Just how might the regional typical family earnings effect future income potential?