Listing ID: 83287
A well-known and liked local establishment has brought many added items to the area. The current owner has built the business up on a good reputation with a loyal customer base. This business is owner operated and looking to transition to a new owner. The current owner is willing to stay on and train for a month showing the new owner all the tips and tricks to building up the business and staying successful with a great reputation. The Cafe has a large layout with plenty of standing and sitting room with a warm inviting atmosphere.
- Asking Price: $75,000
- Cash Flow: $50,000
- Gross Revenue: $205,000
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $28,700
- Inventory Included: Yes
- Established: 2017
- 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
Great facilities in a newer building.
The current owner is willing to stay on and train for as long as needed.
This business could be grown to other locations.
The venture was founded in 2017, making the business 5 years old.
The transaction shall include inventory valued at $28,700, which is included in the asking price.
The business has 4 employees and resides in a building with approx. square footage of N/A sq ft.
The real estate is leased by the company for $3,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell businesses. However, the true reason and the one they tell you might be 2 absolutely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of other reasons. This is why it is really important that you not depend totally on a seller's word, but instead, make use of the seller's response along with your overall due diligence. This will paint an extra realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that profit margins are too small. Lots of organisations 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 obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new customers? Many times, businesses have repeat consumers, which form the core of their day-to-day earnings. Specific elements such as brand-new competition sprouting up around the location, road building, and personnel turn over can affect repeat clients and also negatively impact future revenues. One crucial point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the higher the chance to build a returning consumer base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? How might the local mean household income influence future income prospects?