Listing ID: 83999
Great opportunity to own your own business with options for the new entrepreneur. Purchase this well established, very profitable business. Owners are offering an option to purchase real estate or lease with an option to purchase. This is a roll your own tobacco store. Offering a wide variety of cigarette and pipe tobacco including a house blend, glass and water pipes, smoking accessories, a very large selection of rolling paper. Inventory includes cigarette cases, incense, hookahs and hookah supplies and more. There is even a walk-in humidor! Two additional locations are available in Gaylord(MLS#201805873) and one in Houghton Lake (MLS#201805868). This location and the Gaylord location both offer purchase of real estate as an option. Houghton Lake is ‘business only’ and currently in a rental unit. Package price for all three.
- 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: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:1,328
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. However, the genuine reason and the one they say to you may be 2 entirely different things. As an example, they may state "I have a lot of other obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be justifications to try to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or an array of various other reasons. This is why it is really important that you not count completely on a seller's word, yet instead, utilize the vendor's solution together with your general due diligence. This will paint an extra realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that sometimes this can suggest that revenue margins are too small. 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 likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new consumers? Often times, operating businesses have repeat consumers, which create the core of their day-to-day earnings. Certain aspects such as new competitors growing up around the area, roadway building and construction, as well as staff turnover can affect repeat consumers and also adversely impact future revenues. One vital thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the higher the possibility to build a returning client base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the local mean family income effect future earnings potential?