Listing ID: 82963
Business Overview
Principle Business Advisors presents this dry cleaner pickup location for sale in Hammond, Louisiana. The business is located in a strip mall on a major thoroughfare. It is the second of two dry cleaners available for sale. This location is pick up only and the other location houses the plant. They can be purchased together or this location can be purchased separately.
Come meet the owner, see this great spot and make an offer!
For more information, call Joel Duran CM&AA, CEPA, CMSBB at (504) 321-0196.
Financial
- Asking Price: $50,000
- Cash Flow: $18,000
- Gross Revenue: $100,000
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $100
- Inventory Included: Yes
- Established: 2012
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:2
- Furniture, Fixtures and Equipment:N/A
There will be a two week training period and then the owner will be available by telephone thereafter.
Relocating
The Great Recession of 2008 and the Covid-19 attack of 2020 have not been good for the service industries—including dry cleaning, as well as the commercial real estate industry—but to office worker vacancy rates and the difficulty of shopping centers to collect rent from struggling shop owners. It is expected that by the end of 2021, we will see more than 33 percent of the dry cleaning storefronts that were functioning in 2007 to be closed, and replaced by the new larger and more efficient type of dry cleaning operations. This is similar to what happened in the 1970s when the oil embargo caused a recession and the consumer switched to polyester clothing, resulting in the loss of 1/3 or more of the dry cleaning storefronts to close. Upon the end of the 70s, the recession ended and the consumers went back to natural fabrics, resulting in the revival of the remaining dry cleaners, who became the dry cleaning millionaires of the 1980s! Change always has its upsides and downsides for different groups!
This billion-dollar industry is going through a major paradigm shift from small mom-and-pop operators to sophisticated business people with centralized automated plants, computerized inventory, and many changes that were not known of 10 or 20 years ago. We work with the new breed of dry cleaning entrepreneurs to assist with their growth and operations. Commenting on all of the industry is difficult, as the quality levels, price points, the economy of scale, and markets served are so different! Modern dry cleaning operations are growing into light industrial production and distribution operations.
Additional Info
The business was founded in 2012, making the business 10 years old.
The deal will include inventory valued at $100, which is included in the requested price.
The business has 2 employees and is situated in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $1,850 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. However, the real reason vs the one they say to you may be 2 absolutely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competitors, current reduction in profits, or an array of other factors. This is why it is really crucial that you not count entirely on a vendor's word, however rather, utilize the vendor's answer together with your total due diligence. This will repaint an extra reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans in order to cover items such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that revenue margins are too tight. Numerous companies fall into 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 might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new customers? Often times, businesses have repeat customers, which form the core of their daily earnings. Particular elements such as new competition sprouting up around the area, roadway building, and staff turnover can impact repeat consumers and also adversely influence future incomes. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the better the chance to build a returning client base. A last thought is the general area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the regional median family income impact future income potential?
