Listing ID: 83183
Profitable store in 1st class Shopping Center location and high walk in traffic.
Owner retiring. Potential upside growth with additional inventory investment and Ad campaign.
- Asking Price: $130,000
- Cash Flow: $40,000
- Gross Revenue: $493,000
- EBITDA: N/A
- FF&E: $35,000
- Inventory: $39,000
- Inventory Included: Yes
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,050
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
1st class, modern store with recent leasehold improvements
exclusive location next to high volume stores
A potential growth opportunity if advertising is initiated and inventory is expanded
The company was founded in 1993, making the business 29 years old.
The transaction does include inventory valued at $39,000, which is included in the requested price.
The company has 3 employees and resides in a building with estimated square footage of 1,050 sq ft.
The property is leased by the business for $1,356 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell companies. Nevertheless, the true factor vs the one they tell you may be 2 totally different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or an array of other factors. This is why it is really important that you not rely completely on a vendor's word, however instead, use the seller's solution in conjunction with your general due diligence. This will repaint a more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that earnings margins are too tight. Numerous organisations 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 think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that should be fulfilled or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new clients? Most times, businesses have repeat customers, which create the core of their day-to-day profits. Certain aspects such as new competition growing up around the area, road construction, as well as employee turn over can impact repeat clients and also adversely affect future earnings. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business often, the better the possibility to build a returning consumer base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood mean family earnings influence future revenue potential?