Listing ID: 83932
Business Overview
Must See Great Liquor Convenience Store!
Ownership has other interest and must sell.
This is a must-see Liquor Store, owner purchased in 2006 and has not stop improving. Totally remodeled with 25 door 7 shelves walk-inn cooler, 8 door Freezer, granite counter, floor to ceiling L shaped Liquor shelving and counter. Two check out electronic POS systems (registers) and open ceiling floor plan. State of the art 12 camera system. Five aisles with 20’ grocery and wine shelving. Large back room for organization and deal buying. Two lottery machines and one Lottery self-serve machine, Lottery commission is over $50K annually.
This store is employee run and sales can be increased easily with new ownership at the wheel. Money service business is in place with complete system for check cashing and money orders but not utilized, another way for increased traffic, revenue, and profits. ATM machine is another revenue stream brings in steady monthly revenue. Store is in a great neighborhood with median traffic flow and within minutes from downtown Mt. Clemens. Store hours are comfortable for owner as well as for customers. However, hours can be increased for more sales revenue and greater customer convenience.
Financial
- Asking Price: $449,000
- Cash Flow: $115,000
- Gross Revenue: $1,200,000
- EBITDA: N/A
- FF&E: $80,000
- Inventory: $175,000
- Inventory Included: N/A
- Established: 1990
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,900
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Store totally remodeled, walk-in coolers, upright freezer, counters, shelving, POS System, Flooring, Floor to ceiling liquor shelving. Very visible building with newer façade and plenty of parking.
Owner will support and train new ownership for up to 3 weeks.
Other Interest
Neighborhood setting, medium traffic flow. Average House Hold Income of over $50K. Population of over 33k within a 2 mile radius.
Potential revenue growth by increasing check cashing, bill payment service, money orders and money-gram service.
Additional Info
The business was started in 1990, making the business 32 years old.
The transaction doesn't include inventory valued at $175,000*, which ins't included in the suggested price.
The business has 3FT 1PT employees and resides in a building with estimated square footage of 3,900 sq ft.
The real estate is leased by the business for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell companies. However, the genuine reason vs the one they say to you might be 2 totally different things. As an example, they may state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be reasons to try to hide the reality of transforming demographics, increased competition, current decrease in earnings, or an array of other factors. This is why it is really crucial that you not rely entirely on a vendor's word, yet instead, make use of the vendor's solution combined with your overall due diligence. This will paint a more practical image of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that earnings margins are too tight. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new clients? Most times, operating businesses have repeat customers, which form the core of their daily earnings. Particular elements such as brand-new competitors growing up around the location, road building, and also staff turnover can impact repeat clients and also adversely affect future earnings. One essential thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business on a regular basis, the greater the possibility to develop a returning consumer base. A last idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? How might the local median household income impact future revenue prospects?
