Listing ID: 82976
Business Overview
The current owner of City Beach Tanning Salon has been in business for only 2 years, but the previous owner was in business for over 20 years, and the location has had the City Beach brand since 1986! This will be the 5th time the business has changed hands since 1986, so the business is very marketable for an investor who wants to buy and grow or flip in several years!
City Beach’s friendly and professional staff take pride in educating clients about the tanning process so that clients feel comfortable during their tanning experience and at the same time achieve the results for which they are looking. City Beach is a full-service tanning salon providing a variety of tanning products and services such as conventional indoor tanning and UV Free Airbrush Tanning.
The Seller is considering ALL offers. The price is NEGOTIABLE. The seller is VERY MOTIVATED. The Seller desires a SMOOTH and QUICK closing. The employees are informed of the sale and desire to remain with the business.
Financial
- Asking Price: $59,000
- Cash Flow: N/A
- Gross Revenue: $75,000
- EBITDA: N/A
- FF&E: $42,000
- Inventory: $1,000
- Inventory Included: Yes
- Established: 1986
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:3
- Furniture, Fixtures and Equipment:N/A
moving out of state
Additional Info
The venture was founded in 1986, making the business 36 years old.
The sale shall include inventory valued at $1,000, which is included in the asking price.
The business has 3 employees and resides in a building with disclosed square footage of N/A sq ft.
The property is leased by the business for $1 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell companies. Nevertheless, the true factor vs the one they tell you may be 2 completely different things. For instance, they may state "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of various other reasons. This is why it is very vital that you not count completely on a seller's word, yet rather, utilize the seller's solution in conjunction with your general due diligence. This will paint a much more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover things like inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that profit margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new customers? Many times, operating businesses have repeat clients, which form the core of their day-to-day revenues. Certain aspects such as new competitors growing up around the area, roadway construction, and also personnel turnover can affect repeat clients and negatively affect future profits. One important thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the higher the opportunity to develop a returning client base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the local mean household income effect future earnings potential?
