Listing ID: 83934

Business Overview

Free standing building, with ample parking. Neighborhood setting, apartments, walkers and foot traffic in a highly populated Washtenaw County town. Employee operated with great hours. Excellent opportunity to get into the liquor store business. No check cashing, money orders, or bill payment but these services can be added for increased profits. Kitchen can be added for increased traffic and revenue. Store needs TLC exterior and interior, priced accordingly. For improved traffic and revenue, a little work would go a long way.
MUST SELL! Owner has other interests, call for your personal showing. No landlord for you, own your own business and building, land contract possible.

Financial

  • Asking Price: $295,000
  • Cash Flow: $60,000
  • Gross Revenue: $900,000
  • EBITDA: N/A
  • FF&E: $45,000
  • Inventory: $100,000
  • Inventory Included: N/A
  • Established: 1974

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:2,187
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Single stand alone building with ample parking.

Is Support & Training Included:

Owner willing for 2 weeks.

Purpose For Selling:

Other business interests.

Pros and Cons:

Since this is a stand alone building, there is no immediate competition due to the neighborhood setting.

Opportunities and Growth:

Carrying pizza or quick grab food items would greatly increase revenue. Space to make store larger.

Additional Info

The business was established in 1974, making the business 48 years old.
The transaction doesn't include inventory valued at $100,000*, which ins't included in the requested price.

The company has 4FT employees and resides in a building with disclosed square footage of 2,187 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. However, the real factor vs the one they tell you might be 2 totally different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, recent reduction in revenues, or a variety of various other reasons. This is why it is very essential that you not depend completely on a vendor's word, however rather, use the vendor's solution together with your general due diligence. This will paint a much more reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that revenue margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in new clients? Most times, companies have repeat customers, which develop the core of their daily profits. Certain aspects such as new competition sprouting up around the location, roadway construction, as well as staff turn over can affect repeat consumers and adversely affect future revenues. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the possibility to construct a returning client base. A final thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Just how might the regional average house income impact future earnings prospects?