Listing ID: 83375
Offering food, groceries, tobacco, beer/wine and gas, this business is the go-to convenience store for tourists, the average working population, and other local businesses. The region is a popular destination for outdoor enthusiasts year-round. The key strengths of the business are fresh, good food made to order and gasoline/fuel. Sales have consistently increased year over year and even during Covid restrictions, store sales have continued to to be strong.
Note, inventory included in sale does not include gas inventory.
- Asking Price: $1,595,000
- Cash Flow: $844,582
- Gross Revenue: $5,375,917
- EBITDA: N/A
- FF&E: $86,400
- Inventory: $30,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:1,880
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Convenience store with kitchen and take-out area, full basement for storage, gas and diesel pumps on site. Large lot with plenty of parking and easy access. Lease also includes an apartment located on the premises.
Two 40-hour weeks
There is one other business that offers fuel, but not food, in the vicinity.
There are several opportunities to grow this highly profitable business. Expanding the beer section would allow more room for larger quantities and more variety of beer. Increasing delivery options could also be beneficial. Although the gas pumps run 24/7, seven days a week, the store is currently closed on Sundays. A new owner could open on Sundays which could increase income potential.
The transaction does include inventory valued at $30,000, which is included in the listing price.
The business has 4 FT/ 5 PT employees and resides in a building with approx. square footage of 1,880 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell operating businesses. Nevertheless, the real factor vs the one they say to you may be 2 completely different things. As an example, they may claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or a range of various other reasons. This is why it is very crucial that you not depend absolutely on a seller's word, however instead, use the seller's response along with your general due diligence. This will paint an extra sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money so as to cover points such as stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that earnings margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be met or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new clients? Many times, businesses have repeat consumers, which develop the core of their everyday earnings. Specific elements such as new competition growing up around the area, roadway building, and personnel turnover can impact repeat consumers and also negatively influence future revenues. One crucial point to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the higher the chance to construct a returning client base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Just how might the regional mean household income influence future earnings prospects?