Listing ID: 84111
This big money maker has sales of $170,000 month. The rent is only $3300/month including triple net! The shop is located in a small strip plaza with lots of parking. The price of $795,000 maybe SBA financeable with 10 to 20% down. The current owner received a SBA loan.
- Asking Price: $795,000
- Cash Flow: N/A
- Gross Revenue: $2,040,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
1500 sq.ft store located in a strip plaza with ample parking.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell companies. However, the true reason and the one they say to you might be 2 entirely different things. For instance, they might claim "I have way too many other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or an array of other reasons. This is why it is very important that you not rely entirely on a seller's word, but instead, make use of the seller's answer together with your general due diligence. This will paint an extra realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering points such as stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that profit margins are too thin. Numerous organisations 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 might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new consumers? Many times, companies have repeat customers, which form the core of their daily earnings. Particular aspects such as brand-new competition growing up around the area, road construction, and also employee turn over can influence repeat consumers as well as negatively affect future earnings. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the greater the opportunity to build a returning consumer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the regional typical family earnings impact future earnings potential?