Listing ID: 83490
Profitable Turn Key Cafe
Gross Sales $545,000 / Cash Flow $94,000
Strong local draw with year round volume
Motivated Seller will onboard new owner
Seating Capacity 60
- Asking Price: $159,500
- Cash Flow: $94,000
- Gross Revenue: $545,000
- EBITDA: N/A
- FF&E: $27,000
- Inventory: $6,000
- Inventory Included: Yes
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
1600 +/- sf strip center with ample off street parking
Owner will assist buyer in transition
Change of profession
Serves surrounding coastal community with consistent year round local volume.
The business was started in 2011, making the business 11 years old.
The transaction does include inventory valued at $6,000, which is included in the suggested price.
The company has 10 employees and resides in a building with disclosed square footage of 1,600 sq ft.
The building is leased by the company for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. However, the genuine reason and the one they tell you may be 2 absolutely different things. As an example, they may claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current decrease in earnings, or an array of various other reasons. This is why it is very essential that you not depend entirely on a vendor's word, but instead, make use of the vendor's response along with your general due diligence. This will repaint a more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that profit margins are too thin. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new consumers? Often times, companies have repeat consumers, which develop the core of their daily profits. Specific factors such as brand-new competitors growing up around the location, road construction, as well as personnel turn over can affect repeat customers and also adversely affect future earnings. One essential point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to build a returning client base. A last idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? How might the local mean household income effect future revenue prospects?