Listing ID: 83224
This Dance Specialty Store is located in Mississippi, with not only a brick-and-mortar building but also an already established online store. Loyal customers of Ballet, Tap & Jazz dancers, as well as Cheerleaders, Gymnasts & Church Praise Dancers have found their needs met beyond expectation since 1993. With little to no competition in the area this specialty store gives a new owner an opportunity to take an already established business and make it their own. Willing to provide training for new ownership to have a smooth transition for customers and employees. Contact us today to find out more about this exciting opportunity!
- Asking Price: $375,000
- Cash Flow: $50,000
- Gross Revenue: $560,000
- EBITDA: N/A
- FF&E: $209,240
- Inventory: N/A
- Inventory Included: Yes
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Seller will negotiate a transition period
The venture was started in 1993, making the business 29 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. Nonetheless, the true reason vs the one they tell you might be 2 entirely different things. As an example, they may claim "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competitors, current decrease in earnings, or a range of various other factors. This is why it is really vital that you not count entirely on a seller's word, but instead, make use of the seller's answer in conjunction with your general due diligence. This will repaint an extra practical image of the business's present situation.
Existing Debts and Future Obligations
If the current 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 companies borrow money so as to cover points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that profit margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in new customers? Most times, operating businesses have repeat customers, which create the core of their day-to-day earnings. Particular aspects such as new competitors sprouting up around the location, roadway building and construction, as well as employee turnover can affect repeat customers and adversely impact future earnings. One important thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the better the possibility to develop a returning consumer base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? How might the regional average house earnings impact future earnings prospects?