Listing ID: 83563
This small grocery store that is packed wall to wall with bulk, gluten free, free range, organic meat, vegan and vegetarian foods. In addition, there are herbs, vitamins, spices, essential oils and other natural products. The owner does an excellent job of doing special “orders” for her customers. She has a very loyal customer base.
The business has been at this location since 1976.
The business can be taken to the next level by aggressive marketing as none has been done,, adding a POS system and utilizing social media sites.
- Asking Price: $49,000
- Cash Flow: $38,450
- Gross Revenue: $172,276
- EBITDA: N/A
- FF&E: $20,000
- Inventory: $20,000
- Inventory Included: Yes
- Established: 1976
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Storefront retail location on main road in Baltimore County. Parking on street or behind the store in parking lot.
Owner will stay on for 3 weeks for training.
Advertise aggressively, build a website, utilize social medial sites and purchase a POS system.
The business was founded in 1976, making the business 46 years old.
The sale will include inventory valued at $20,000, which is included in the requested price.
The real estate is leased by the business for $2,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. Nevertheless, the real factor and the one they say to you might be 2 absolutely different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in revenues, or an array of various other factors. This is why it is very vital that you not rely completely on a vendor's word, however instead, use the vendor's answer combined with your total due diligence. This will paint a much more practical image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that profit margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new clients? Often times, businesses have repeat customers, which form the core of their daily revenues. Certain elements such as brand-new competitors sprouting up around the area, road building and construction, and staff turnover can impact repeat consumers and also negatively affect future revenues. One crucial thing 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? Certainly, the more people that see the business regularly, the greater the opportunity to develop a returning customer base. A last thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? How might the regional median household earnings impact future income prospects?