Listing ID: 83252
This business is located in a high-traffic area that continues to grow. Offering a one-of-a-kind menu to lunch and dinner guests, the business has grown beyond the current owner’s ability to manage (in conjunction with other full-time career).
This is a great opportunity for a new owner to step into a very well-run business.
The business was opened in 2010 and has enjoyed a loyal following of customers, but it wasn’t very profitable. A new owner purchased the business in 2018 and has grown it into a highly profitable restaurant.
The current owner has experienced notable success since purchasing the business, but plenty of growth opportunities still exist. Offerings such as delivery, catering, and selling wine and liquor could significantly improve profits.
Additionally, the business currently has no website, is not on social media, and does no advertising at all.
- Asking Price: $275,000
- Cash Flow: $120,000
- Gross Revenue: $335,000
- EBITDA: N/A
- FF&E: $20,000
- Inventory: $35,000
- Inventory Included: Yes
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
owner pursuing career
The business was started in 2010, making the business 12 years old.
The transaction shall include inventory valued at $35,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. However, the true factor and the one they tell you may be 2 entirely different things. For instance, they may say "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might just be reasons to try to hide the reality of changing demographics, increased competitors, recent reduction in profits, or a range of various other reasons. This is why it is very vital that you not rely completely on a vendor's word, but rather, use the seller's answer in conjunction with your overall due diligence. This will repaint a much more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that earnings margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that should be met or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in brand-new consumers? Many times, businesses have repeat consumers, which form the core of their everyday profits. Particular elements such as new competitors sprouting up around the location, roadway construction, as well as personnel turn over can influence repeat customers as well as negatively influence future profits. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the better the chance to build a returning customer base. A last idea is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood average family income effect future income potential?