Listing ID: 82984
Don’t miss a great opportunity to own a well-established The UPS Store franchise in Deer Park, TX! This store is located in a busy residential and retail area. For fastest results, send an inquiry and someone will respond to you via email within two business days.
- Asking Price: $485,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
This Business Is An Established Franchise
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. Nonetheless, the real factor and the one they say to you may be 2 entirely different things. For instance, they might claim "I have way too many other obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competition, current reduction in profits, or a range of various other factors. This is why it is very vital that you not rely absolutely on a seller's word, yet instead, utilize the seller's response together with your general due diligence. This will repaint an extra realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover things like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can indicate that profit margins are too tight. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that have to be met or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in new clients? Often times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Certain factors such as new competitors growing up around the location, roadway building, and employee turn over can influence repeat customers and also negatively affect future revenues. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business often, the better the opportunity to develop a returning client base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local average family earnings impact future revenue prospects?