Listing ID: 84095
This Pizzeria It’s located in a nice quaint town near Haverhill. The shop closes by 9pm, Mondays opens at 5PM.Delivery is only approx. 10 % of sales, delivery hours are 5p to 8p. The menu is simple. Lots of potential! Rent $2300 no triple net, sales $33,000 mo., asking $129,000 with $50,000 down.
- Asking Price: $129,000
- Cash Flow: N/A
- Gross Revenue: $396,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
1000 sq.ft (plus 1000sq.ft dry basement) store located in a mix use building with parking
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell businesses. Nevertheless, the real factor and the one they tell you may be 2 entirely different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or a variety of various other reasons. This is why it is really vital that you not depend entirely on a seller's word, however rather, utilize the seller's response combined with your total due diligence. This will paint an extra realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover items such as inventory, payroll, accounts payable, etc. Remember that in some cases this can mean that revenue margins are too thin. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new customers? Often times, businesses have repeat customers, which create the core of their daily earnings. Certain elements such as new competitors growing up around the location, road building, as well as staff turnover can influence repeat consumers and also adversely influence future earnings. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the regional mean family earnings effect future income prospects?