Listing ID: 84085
This business is only open 5 nights from 4PM to 11PM., it has a small simple menu with low food cost. Located 10 minutes from Worcester on a heavily traveled road. Sales $53,000 mo. rent $4500/mo. (includes triple net, trash and hot water), asking $129,900 with $85,000 down.
- Asking Price: $129,000
- Cash Flow: $180,000
- Gross Revenue: $676,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
3000sq, ft store located in a small plaza with ample parking
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. However, the genuine factor and the one they tell you might be 2 entirely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in profits, or a variety of other factors. This is why it is extremely crucial that you not rely absolutely on a seller's word, yet instead, utilize the vendor's solution combined with your general due diligence. This will paint a much more sensible image of the business's current circumstance.
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 deal. Many operating businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that revenue margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also 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 contracts with vendors that have to be fulfilled or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their daily revenues. Specific factors such as brand-new competition growing up around the location, roadway construction, and also employee turn over can impact repeat consumers and also adversely affect future incomes. One essential thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business often, the higher the chance to build a returning customer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the regional mean family income influence future earnings potential?