Listing ID: 83327
Profitable Screen Printing Business in SW MS
Profitable screen printing business with great opportunity to grow by adding a custom brand and expanding market.
- Asking Price: $290,000
- Cash Flow: $133,000
- Gross Revenue: $363,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $20,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Serial entrepreneur about to start new venture
The deal won't include inventory valued at $20,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nonetheless, the true reason vs the one they tell you may be 2 completely different things. As an example, they may state "I have too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competition, current reduction in profits, or a variety of other reasons. This is why it is extremely vital that you not count absolutely on a seller's word, however instead, make use of the seller's response combined with your overall due diligence. This will paint a much more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover things such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that earnings margins are too small. Many companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new clients? Many times, businesses have repeat clients, which develop the core of their daily earnings. Certain elements such as new competition sprouting up around the location, roadway building, and employee turnover can impact repeat consumers and adversely affect future incomes. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning customer base. A final idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the regional typical household income effect future earnings potential?