|By Bakersdaughter (Bakersdaughter) on Wednesday, August 04, 2004 - 11:54 pm: Edit|
I'll start with basic information then you can email back if your have extra questions. My business is located in a strip mall in a very well populated area. Wonderful clientele, lots of walking traffic, close to highway and major intersection. The shop is 1000 square feet with room to expand and still has 2 years lease at $1000 per month rent. Running the location as a catering business and/or sandwich shop you could easily take in $10,000 per week in sales. There is nothing but fast food all around.Fully equipped kitchen with double oven, two rolling covered racks, 2 stainless rack systems, stainless steel tables, 20 quart Hobart mixer, full size refrigerator, full stand up freezer. Full inventory of wedding cake plates and accessories, fountains, stairs, etc. Fully stocked inventory of ingredients and supplies. Complete line of baking pans, including round, square, hexagon, oval, heart shaped, character pans, shaped pans. Fully stocked inventory of cake boxes. Display cakes also. You can see the type of work that we do on my website which could also be customized for you at www.bakersdaughter.net. Are you interested in running the business under the established name? Let me know if any further information is needed. Asking price $98,000, easily make that back with your first year.
See more details of my shop at www.bakersdaughter.net/For_Sale.htm
|By Catergreat (Catergreat) on Thursday, August 05, 2004 - 12:17 am: Edit|
sorry you are having to get out of the business. I am sure that was a tough decision.
i am not too far from you and I have some strong contacts in the area.
where exactly is arnold.
what is the population
what is the population in a 3 mile radius.
what were sales for the past 5 years, please list each year.
I sense that you are placing quite a bit of value on what "can" be done. Most people will be looking more at what YOU have done.
You can realistically expect to be paid based upon history.
I have purchased businesses in the past and sold some as well.
the buyer is looking to pay based upon history and it is only a good deal IF the buyer can see a better future.
but that future is based upon what the buyer DOES and they buyer will not pay you for that.
with all that said, bottom line is it is WORTH only what someone will pay for it.....
yes there is value in the location and established business, otherwise you will be sad to know that you will be lucky to be paid 15 cents on the dollar for used equipment....
smart buyers know that.
businesses rarely are sold for what the owner wishes it was worth.
the follow will be in your favor in maximizing your price.
Longevity in business.
Profitability in business (you will have to show your income tax returns to verify your financial statements)
The MOST I see these businesses go for including equipment in great shape, is 5 times earnings. (net profits)
So if you can prove you have earned a net profit of 25k per year (after paying yourself a fair salary, because sweat equity brings nothing) and your equipment is in great shape, you might find a buyer willing to pay 100k.
but since you are almost guaranteeing that a person "can" make 98,000.00 profit in a year, your price may be too low. but remember... history is everything....and profit is only AFTER a fair industry wage for any owner....
I wish you all the best and hope this helps you in some way.