Business Overview

TYPE OF BUSINESS: Highly Profitable Branding & Marketing Service business located in the Twin Cities. They specialize in enhancing a companies’ marketing message, help build a brand, improve customer and employee relations. The company offers products both digital and print marketing, screen, embroidery, custom packaging, award programs and promotional products etc. They have invested in a state-of-the-art- program that gives them access to a database totaling more than 650,000 products. This business has an impressive customer list throughout the United States with many of them as repeat customers. Their customers include sport teams, corporate accounts, school organizations, medical professionals, and government agencies to name a few.
Hours are Monday – Friday 8:00 a.m. to 500 p.m.

FACILITY: This business operates out of the owner’s home.

EMPLOYEES: Owner works the business full-time with 1 other full-time and 2 part-time employees.

GROSS SALES: 2021 sales were $733,738, with a cash flow of approx. $203,500. 2020 sales were $603,824 and the cash flow was approx. $141,500. 2019 sales were $654,275 and the cash flow was approx. $166,800.

SALES PRICE: The seller is asking $520,000 for the business which includes furniture, fixtures and equipment valued at about $3,000 and inventory (displays/samples) valued approx. $5,000.

REASON FOR SALE: Other interest.

Financial

  • Asking Price: $520,000
  • Cash Flow: $203,500
  • Gross Revenue: $733,738
  • EBITDA: N/A
  • FF&E: $3,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 2004

Detailed Information

  • 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
About The Facility:

This business operates out of the owner’s home. (Home Based)

Is Support & Training Included:

Seller will train new owner at no cost to them.

Purpose For Selling:

Other Interest

Home Based:

This Business Is Home Based

Additional Info

The business was started in 2004, making the business 18 years old.
The sale shall include inventory valued at $5,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. However, the genuine reason vs the one they say to you might be 2 totally different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a variety of other factors. This is why it is very important that you not count absolutely on a vendor's word, yet rather, use the seller's solution combined with your general due diligence. This will paint an extra sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that earnings margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract new customers? Most times, businesses have repeat customers, which develop the core of their everyday profits. Specific elements such as new competitors growing up around the location, road building and construction, and personnel turn over can influence repeat clients and also negatively influence future revenues. One essential thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the higher the possibility to construct a returning customer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Exactly how might the local average household income influence future revenue prospects?