Listing ID: 84065
Great opportunity! This shop is open 5 days a week, a simple menu and lots of parking. It is located near Haverhill close to the Mass and NH border. Sales $67,000 mo. (last year when it was open 7 days sales were $22,000 week.), rent $2500/ mo. no triple net., asking $289,900 with $100,000 down.
- Asking Price: $289,900
- Cash Flow: $288,000
- Gross Revenue: $804,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
1900sq, ft store located in a mix use building with ample parking
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell companies. Nevertheless, the real reason and the one they tell you may be 2 totally different things. For instance, they may state "I have way too many other obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competitors, recent reduction in profits, or a variety of other reasons. This is why it is extremely important that you not rely totally on a vendor's word, yet rather, use the vendor's solution in conjunction with your total due diligence. This will repaint a much more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that profit margins are too thin. Lots of businesses 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 commitments to consider. There might 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 satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new clients? Many times, operating businesses have repeat clients, which create the core of their day-to-day profits. Particular aspects such as brand-new competitors sprouting up around the area, road building and construction, and personnel turnover can affect repeat customers and also adversely impact future revenues. One vital point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? How might the local typical home earnings impact future income potential?