Business Overview

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 $407,341. I new owner will net $293,000 first year after paying debt service, paying buyer back their deposit in 4 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, toys, and accessories for children of all ages. 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. Long lease in place. 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.

Financial

  • Asking Price: $950,000
  • Cash Flow: $407,342
  • Gross Revenue: $1,553,140
  • EBITDA: N/A
  • FF&E: $175,000
  • Inventory: $150,000
  • Inventory Included: Yes
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Will train for 1 week @ $0 cost.

Purpose For Selling:

Store is too far from home.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The venture was started in 2012, making the business 10 years old.
The deal shall include inventory valued at $150,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell operating businesses. However, the genuine factor and the one they say to you may be 2 entirely different things. As an example, they may state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competition, recent reduction in earnings, or a variety of various other factors. This is why it is very important that you not rely totally on a vendor's word, yet rather, utilize the seller's answer along with your overall due diligence. This will repaint a much more practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money so as to cover points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that profit margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be met or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new customers? Often times, operating businesses have repeat clients, which create the core of their daily profits. Certain variables such as new competitors growing up around the area, road construction, as well as employee turn over can influence repeat clients as well as negatively affect future profits. One important point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? How might the local typical household income impact future earnings prospects?