Listing ID: 83791
TYPE OF BUSINESS: Gourmet chocolate and sweet confections business with a wide variety of chocolate products produced on site. This business is known for using only the finest ingredients hand selected from around the world. They produce custom chocolates for any occasion. You name it, and they can do it, gift baskets, wedding displays, catering, events, special occasions, corporate and seasonal gifts. These products are available for sale in multiple locations across the metro area.
Established over 15 years ago. Hours of operation are Monday through Friday 8:30am to 4:00pm.
FACILITY: This business has a favorable lease and are located in a 1,500 sq. ft. kitchen/retail space in a beautiful high traffic strip mall with plenty of parking. Monthly rent is $1,784.
EMPLOYEES: The owner works approximately 20 – 30 hours per week along with 2 full-time and 8 part time employees.
GROSS SALES: Gross sales for 2021 were $246,400. Cash flow to an owner operator was approx. $53,000. Gross sales in 2020 were $168,394 and in 2019 was $326,104.
ASKING PRICE: The owner is asking $175,000 for the business, this includes $12,000 (cost) in inventory, and the value of the equipment, furniture and fixtures is about $42,000.
REASON FOR SALE: Retirement.
- Asking Price: $175,000
- Cash Flow: $53,000
- Gross Revenue: $246,400
- EBITDA: N/A
- FF&E: $42,000
- Inventory: $12,000
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
This business has a favorable lease and are located in a 1,500 sq. ft. kitchen/retail space in a beautiful high traffic strip mall with plenty of parking. Monthly rent is $1,784.
Seller willing to train new owner at no cost to them.
The company was founded in 2004, making the business 18 years old.
The deal shall include inventory valued at $12,000, which is included in the asking price.
The company has 10 employees and is located in a building with approx. square footage of 1,500 sq ft.
The building is leased by the company for $1,784 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell businesses. However, the genuine reason vs the one they tell you might be 2 totally different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or an array of other reasons. This is why it is very important that you not rely entirely on a vendor's word, however instead, make use of the seller's response along with your overall due diligence. This will repaint an extra realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover points such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that profit margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in new clients? Many times, companies have repeat consumers, which develop the core of their everyday earnings. Certain elements such as new competitors growing up around the area, road construction, and also personnel turnover can impact repeat customers and also adversely impact future profits. One vital thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the better the opportunity to construct a returning client base. A final idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood typical house income influence future earnings prospects?