Listing ID: 72504
This business has been pre-approved for bank financing with only 10% down needed ($95,000). In the last 12 months this business has netted over $405,518. A new owner will net $291,000 first year after paying debt service, paying buyer back their deposit in 7 months.
Sales are up for 2021 and will beat previous years numbers!
This is a nationally recognized leader in sustainable retail. They buy and sell gently used clothes, shoes, and accessories for teens and young adults. This is business is a well established store with a long track record of success. Store is located in a great area with a lot of traffic with high volumes. This business is being sold as a hands on owner that already has an entire staff to operate the business in place.
NOTE: $150,000 of inventory is INCLUDED in asking price.
- Asking Price: $950,000
- Cash Flow: $405,518
- Gross Revenue: $1,691,760
- EBITDA: N/A
- FF&E: $175,000
- Inventory: $150,000
- Inventory Included: Yes
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Will train for 1 week @ $0 cost.
Store too far from home.
This Business Is An Established Franchise
The business was established in 2005, making the business 17 years old.
The transaction does include inventory valued at $150,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. However, the true reason and the one they say to you may be 2 entirely different things. For instance, they might say "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is extremely essential that you not count totally on a vendor's word, yet rather, use the seller's answer along with your total due diligence. This will repaint a more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering points such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can mean that earnings margins are too tight. Many organisations come under 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 think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be satisfied or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in brand-new customers? Most times, operating businesses have repeat consumers, which develop the core of their everyday profits. Particular factors such as new competition sprouting up around the location, road construction, as well as personnel turnover can impact repeat consumers and also negatively impact future profits. One essential point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the possibility 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 edge of town? How might the regional mean house earnings impact future earnings potential?