Listing ID: 84080
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 $329,000 with $100,000 down.
- Asking Price: $329,000
- 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 kinds of reasons people resolve to sell businesses. Nevertheless, the genuine factor vs the one they tell you might be 2 totally different things. As an example, they may say "I have way too many various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in earnings, or a variety of various other reasons. This is why it is very crucial that you not depend entirely on a seller's word, yet instead, make use of the seller's response combined with your total due diligence. This will paint a much more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that in some cases this can suggest that revenue margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be met or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new consumers? Most times, companies have repeat customers, which create the core of their day-to-day revenues. Specific elements such as brand-new competitors sprouting up around the area, roadway building and construction, and also personnel turnover can impact repeat clients and adversely impact future profits. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the greater the chance to construct a returning consumer base. A last idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood median house income impact future earnings prospects?