Listing ID: 84019
The shop is closed SUNDAYS! This is an attractive and well equipped pizzeria with 30 seats and only 30% delivery. It is located near Braintree, in a small strip plaza with ample parking. Rent $4000(includes NNN), sales $44,000/mo., asking $160,000 with $100,000 down
- Asking Price: $160,000
- Cash Flow: N/A
- Gross Revenue: $528,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
2200 sq ft store located in a strip plaza with ample parking
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell businesses. Nevertheless, the real factor vs the one they say to you may be 2 completely different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competitors, recent reduction in incomes, or a range of various other reasons. This is why it is very important that you not count absolutely on a vendor's word, however instead, make use of the seller's solution in conjunction with your total due diligence. This will repaint a much more practical image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies borrow money so as to cover things such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that earnings margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new customers? Often times, companies have repeat consumers, which form the core of their everyday revenues. Specific aspects such as brand-new competition sprouting up around the location, road building, and also staff turnover can impact repeat clients as well as adversely affect future profits. One essential point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business often, the better the possibility to develop a returning client base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the local mean household income effect future income prospects?