Listing ID: 83264
Location! Location! Location!! Growing ladies boutique for sale. Trendy shop in prime location with repeat customers and sales increasing year after year.
- Asking Price: $112,500
- Cash Flow: $50,000
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $15,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,100
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The deal does include inventory valued at $15,000, which is included in the suggested price.
The company has 5 employees and resides in a building with disclosed square footage of 1,100 sq ft.
The real estate is leased by the business for $2,132 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell businesses. However, the genuine reason and the one they say to you might be 2 absolutely different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competitors, current decrease in incomes, or a variety of other reasons. This is why it is extremely vital that you not count absolutely on a vendor's word, however instead, utilize the seller's solution along with your overall due diligence. This will paint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that profit margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be satisfied or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new clients? Most times, businesses have repeat customers, which develop the core of their day-to-day earnings. Particular aspects such as brand-new competition growing up around the area, roadway construction, and also personnel turnover can affect repeat customers as well as negatively impact future revenues. One crucial point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the greater the chance to build a returning customer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? How might the local median household earnings influence future income prospects?