Listing ID: 83915
Established In 1976, this Cafe has been a Staple in Orion Township. There was even a show filmed there. The owner is ready to retire and hand the business off to a new owner. 1,200 S.F. Corner suite at the Baldwin/Walden Roundabout. Includes all equipment, which the majority of is less than two years old. Capacity is 40 seats.
- Asking Price: $295,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1976
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The business was established in 1976, making the business 46 years old.
The business has 10 employees and resides in a building with estimated square footage of 1,200 sq ft.
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell companies. Nonetheless, the real factor vs the one they tell you might be 2 completely different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competitors, recent reduction in earnings, or an array of various other factors. This is why it is really important that you not rely completely on a seller's word, yet instead, make use of the seller's response combined with your general due diligence. This will repaint a more realistic image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering things such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that revenue margins are too small. Lots of companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new customers? Many times, companies have repeat consumers, which create the core of their daily revenues. Specific factors such as new competition growing up around the location, roadway construction, as well as staff turn over can impact repeat customers and negatively influence future earnings. One crucial point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the higher the opportunity to build a returning consumer base. A final idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the regional mean household earnings influence future earnings potential?